Earlier today, Yum Brands reported adjusted Q2 EPS of $1.16, surpassing our $0.97 forecast and sell-side consensus (according to Consensus Metrix) of $0.96. We attribute the EPS beat primarily to: (1) better-than-expected same-store sales at Taco Bell and KFC U.S., (2) leverage achieved due to sales strength, and (3) a better-than-anticipated adjusted tax rate of 20.0% (versus our 21.5% projection and consensus of 21.5%). Taco Bell, KFC, Pizza Hut, and The Habit Burger Grill all
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Earlier today, McDonald’s reported adjusted Q2 EPS of $2.37, ahead of our $2.13 estimate and sell-side consensus (according to Consensus Metrix) of $2.12. Currencies helped Q2 EPS by +13 cents. Management looks for Q3 EPS to be helped by about +3 to +5 cents due to favorable currencies. The full-year outlook is +20 to +22 cents, suggesting perhaps a -2 cent hit to Q4 EPS. Closely-watched U.S. same-store sales soared by +25.9%, topping our +24.3%
After Tuesday’s market close, The Cheesecake Factory reported adjustedQ2 EPS of $0.80, ahead of our $0.63 forecast and sell-side consensus (according to Consensus Metrix) of $0.77. Factors contributing to the Q2 EPS outperformance relative to our forecasts include: (1) Cost of Sales/Revenues 22.0% actual vs. 22.5% projected, (2) Labor Expenses/Revenues 35.7% actual vs. 36.1% projected, and (3) D&A/Revenues 2.9% actual vs. 3.3% projected. Second-quarter same-store sales for brand Cheesecake Factory rose by +150.0%, slightly exceeding