Coverage

All Reports:

Restaurant Industry
Mark Kalinowski

Burger Sector: What Same-Store Sales Trends Hint at re: Average Unit Volumes (5/23/2024)

McDonald’s, Wendy’s, and Burger King (owned by Restaurant Brands International [QSR; Not Rated]) each recently reported their Q1 2024 U.S. same-store sales. In this report, we discuss how these same-store sales results — and potential results for full-year 2024 — relate to these three concepts’ average unit volumes (AUVs). We further discuss what this means for the companies, and their stocks.

Read More »
YUM! Brands Inc. (YUM)
Mark Kalinowski

YUM: The Fast-Growing Concept Yum Brands Should Consider Acquiring

Yum Brands remains one of the foremost – arguably, the foremost – aggregator of multiple restaurant concepts in the world. Its KFC, Taco Bell, and Pizza Hut brands are legendary. Yum Brands also acquired the fast-casual Habit Burger concept back in early 2020. We believe that Yum will make additional concept acquisitions in the future. Toward that end, it seems that there is one concept in particular that it makes a lot of sense for Yum to seriously think about acquiring.

Read More »
Cheesecake Factory (CAKE)
Mark Kalinowski

CAKE (Post-Call): Reiterates a 2024 Net Income Margin Target of About 4.25%

After today’s (Wednesday’s) market close, The Cheesecake Factory reported that its first-quarter adjusted EPS reached $0.73. This easily surpassed our $0.60 forecast and sell-side consensus (according to Consensus Metrix) of $0.63. The Q1 income-statement line item that was most better than our estimates was Other Operating Costs/Revenues, which at 26.2% actual was +60 basis points more favorable than our 26.8% estimate. Trends in utilities and supply-chain costs helped get to this line-item outperformance in Q1. Management notes that it does not build any continued leverage into this line item into its stated targets (see below for more info about those targets).

Read More »