We briefly note the following tidbits regarding Taco Bell (owned by Yum Brands [YUM; Buy]), Baskin-Robbins (owned by Dunkin’ Brands Group [DNKN; Neutral]), and mid-sized restaurant concepts:
Earlier today, McDonald’s reported adjusted Q4 EPS of $1.97, ahead of our $1.91 forecast and sell-side consensus of $1.89. We calculate that the adjusted tax rate was about 19.1%, versus our 24.5% forecast and consensus of 24.4%. If the adjusted tax rate had matched consensus, then by our math adjusted EPS would have come in closer to $1.84. McDonald’s points out the following long-term targets in today’s 8-K:
After today’s market close, Starbucks (SBUX; Neutral) reported adjusted fiscal Q1 2019 (calendar Q4 2018) EPS of $0.75, exceeding our $0.66 forecast and sell-side consensus (as measured by Consensus Metrix) of $0.65. Starbucks notes that this $0.75 figure “included a $0.07 benefit from discrete income tax items,” suggesting the EPS beat excluding these tax items was $0.02 versus our forecast and $0.03 versus consensus.