By Mark Kalinowski
Published on November 6, 2019 at 12:00 AM
Earlier today, Wendy’s (WEN; Buy) reported adjusted Q3 EPS of $0.19, coming in ahead of our $0.15 forecast and sell-side consensus (according to Consensus Metrix) of $0.15. We attribute the earnings beat to two main factors: (1) better-thanexpected success of Spicy Chicken Nuggets, which drove Q3 same-store sales up by +4.4%, the third-best quarterly showing this decade, and (2) a more favorable-thanexpected adjusted tax rate.
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By Mark Kalinowski
Published on October 29, 2019 at 12:00 AM
After Tuesday’s market close, Denny’s (DENN; Buy) reported adjusted Q3 EPS of $0.18, coming in ahead of our $0.16 forecast and sell-side consensus (according to Consensus Metrix) of $0.16. We attribute the EPS beat to a combination of: (1) better-than-expected Payroll and Benefits/Company Restaurant Sales (37.4% actual vs. 38.3% projected), (2) better-than-anticipated G&A/Revenues (13.2% actual vs. 13.8% estimated), (3) better-than-expected D&A/Revenues (3.5% actual vs. 4.2% forecasted), (4) lower-than-anticipated interest expense ($4.2 million actual vs. $5.3 million projected), and (5) a favorable adjusted tax rate (15.5% actual vs. 21.2% forecasted) — all partially offset by some other factors (such as lower-thananticipated Company Restaurant Sales, due to the faster-than-expected pace of refranchising).
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By Mark Kalinowski
Published on October 29, 2019 at 12:00 AM
After today’s (Tuesday’s) market close, The Cheesecake Factory (CAKE; Neutral) reported adjusted Q3 EPS of $0.59, coming in ahead of our $0.55 forecast and sellside consensus (according to Consensus Metrix) of $0.55. We attribute the betterthan-expected earnings to favorable Cost of Sales/Revenues (22.7% actual vs. 23.4% forecasted).
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