By Mark Kalinowski
Published on May 8, 2019 at 12:00 AM
Earlier today, Wendy’s (WEN; Neutral) reported adjusted EPS of $0.14, surpassing our $0.11 estimate and sell-side consensus (according to Consensus Metrix) of $0.11. Relative to our model, outperformance came from: (1) better-than-expected G&A/Revenues (12.1% actual vs. 12.7% estimated), (2) better-than-expected Cost of Sales/Sales (85.0% actual vs. 85.8% forecasted), (3) lower-than-projected Interest Expense ($29.1 million actual vs. $30.1 million projected), and (4) a somewhat more favorable tax rate than anticipated (20.0% actual vs. 22.5% forecasted). These positives were partially offset by some other factors, such as higher-than-anticipated Other Operating Expenses.
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By Mark Kalinowski
Published on March 6, 2019 at 12:00 AM
We revise our Q1E tax-rate projection to 28.5% (from 24.8%). This change has the effect of lowering our Q1E and our full-year 2019E EPS estimates by $0.09 each, to $1.71 and $8.01, respectively. (Our full-year 2020E EPS forecast remains unchanged at $8.75.)
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By Mark Kalinowski
Published on March 6, 2019 at 12:00 AM
This past September, McDonald’s (MCD; Buy) announced that it would reorganize its business into three segments (U.S., International Operated Markets, and International Developmental Licensed Markets). Much more recently, McDonald’s provided some historical information — including same-store sales information — about these new business segments. Armed with this new information, with this report we introduce our same-store sales projections for 2019E and 2020E for the International Operated Markets and International Developmental Licensed Markets segments. As of this writing, there appear to be no sell-side consensus numbers available for these business segments, due to a lack of enough sell-side analysts having published such forecasts.
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