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.
Earlier today, Papa Johns reported adjusted Q2 EPS of $0.74, coming in a little light of our $0.77 forecast and sell-side consensus (according to Consensus Metrix) of $0.75.
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.
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.
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.
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%.