YUM Sometimes Delivery Ain’t What It’s Cracked Up to Be

By Mark Kalinowski Published on October 30, 2019 at 12:00 AM

Earlier today, Yum Brands (YUM; Buy) reported adjusted Q3 EPS of $0.80 — which included a -$0.15 hit related to the mark-to-market adjustment for Yum’s investment in Grubhub (GRUB; Not Rated). Excluding this GRUB-related adjustment, EPS would have been $0.95, matching our $0.95 forecast, although a penny shy of the sell-side consensus (according to Consensus Metrix) of 0.96.

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DPZ Our Meeting with Management in Ann Arbor

By Mark Kalinowski Published on May 30, 2019 at 12:00 AM

We recently met with Domino’s (DPZ; Buy) — including CEO Ritch Allison, Executive Vice President and CFO Jeff Lawrence, and Director of Investor Relations Chris Brandon — in Ann Arbor, Michigan. We thank them for their time! Topics of interest that were asked about include Domino’s plans to fight off delivery aggregators and other competition (“The good news is, the strategies to play offense against the aggregators are exactly the same as the strategies to play offense against the traditional competition.”), how crisis (such as the possibility of higher protein costs given the risks brought about by African swine fever) could be a net positive for Domino’s, and Domino’s current thoughts regarding plant-based proteins (“We don’t have any imminent plans in place, but we have to stay on top of it and see what consumers are going to do.” Management said that when they have tried some of the latest plant-based offerings, the “flavor and texture are shockingly close” to real beef). We reiterate our Buy rating on DPZ, and note the following:

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MCD Detailed Results from Survey of 700+ McDonald’s Franchisees re Delivery

By Mark Kalinowski Published on January 28, 2019 at 12:00 AM

Recently, the National Owners Association (NOA) — the first-ever independent franchisee association for McDonald’s U.S. — surveyed McDonald’s U.S. franchisees regarding delivery and the economics surrounding delivery. In this report, you will find the results of that survey.

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