Coverage

All Reports:

Dine Brands Global (DIN)
Mark Kalinowski

DIN (Post-Call): Better Call Saucy Gloss

Earlier today, Dine Brands reported Q2 adjusted EPS of $1.65. This was ahead of our $1.60 projection and sell-side consensus (according to Consensus Metrix) of $1.62. We note that while Q2 G&A expenses of $44.1 million were up year-to-year, this was still lower (better) than our $46.4 million estimate and consensus of $46.1 million.

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YUM! Brands Inc. (YUM)
Mark Kalinowski

YUM (Post-Call): Don’t Call it a Comeback

Earlier today (Wednesday), Yum Brands reported adjusted Q2 EPS of $1.05, falling short of our $1.13 estimate and sell-side consensus (according to Consensus Metrix) of $1.10. We attribute the shortfall primarily to: (1) weaker-than-expected same-store sales at KFC and Pizza Hut (including both brands in China and the U.S.), and (2) a Q2 adjusted tax rate of 24.3% (as compared to our 21.6% estimate and consensus at 21.7%. The tax-rate difference cost Yum Brands about -4 cents in Q2 EPS, implying that Q2 EPS would have been only one cent short of consensus excluding this factor.

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Starbucks Corp. (SBUX)
Mark Kalinowski

SBUX: Onward to the 9/13 Analyst Meeting

After today’s (Tuesday’s) market close, Starbucks reported adjusted fiscal Q3 (calendar Q2) EPS of $0.84, close to our $0.85 forecast, and ahead of sell-side consensus (according to Consensus Metrix) of $0.77. That said, on today’s conference call, management noted that fiscal Q3 EPS was helped by about +5 cents due to what it called “non-recurring benefits,” citing multiple factors including tax credits and government subsidies. Other than these non-recurring factors, the fiscal Q3 EPS outperformance relative to consensus was helped by better flow-through in the North American business (thanks in part to a more stable operating environment), as well as better-than-expected performance in Japan.

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Denny's Corporation (DENN)
Mark Kalinowski

DENN (Post-Call): Not Every Quarter Can be a Grand Slam

After today’s (Tuesday’s) market close, Denny’s reported Q2 adjusted EPS of $0.11, falling short of our $0.14 forecast and sell-side consensus (according to Consensus Metrix) of $0.14. Second-quarter adjusted EBITDA amounted to $17.2 million, below consensus at $19.5 million, but within the company’s target range as stated in early May of $17-$19 million.

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Cheesecake Factory (CAKE)
Mark Kalinowski

CAKE (Post-Call): Summer Menu Change will Include +4.25% of Menu Pricing

After today’s (Wednesday’s) market close, The Cheesecake Factory reported adjusted Q2 EPS of $0.52, falling well short of our $0.77 forecast and sell-side consensus (according to Consensus Metrix) of $0.78. This EPS miss came despite the adjusted Q2 tax rate of 5.1% being more favorable than our 11.5% projection and consensus of 11.8%.

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