SBUX (Post-Call): Percolating Sales, Earnings, and Loyalty Program Growth

By Ryan D. Lavender Published on April 27, 2021 at 4:51 PM

Earlier today, Starbucks reported fiscal Q2 (calendar Q1) adjusted EPS of $0.62, surpassing our $0.53 forecast and sell-side consensus (according to Consensus Metrix) of $0.53. Starbucks bumps up its fiscal 2021 target range for adjusted EPS to $2.90-$3.00 (from $2.70-$2.90). Sources of the fiscal Q2 EPS outperformance include: (1) better-than-expected Product and Distribution Costs/Total Net Revenues (29.9% actual vs. 31.2% estimated), (2) better-than-expected Store Operating Expenses/Company-Operated Store Revenues (49.9% actual vs. 51.8% forecasted), and (3) D&A/Total Net Revenues (4.6% actual vs. 4.9% projected).

Read More

MCD: The Bull and Bear Cases on McDonald’s

By Ryan D. Lavender Published on March 16, 2021 at 4:49 PM

In this report we examine the bull and bear cases regarding McDonald’s (MCD; Buy, $220.46). While we maintain our Buy rating on MCD — it continues to be our top large-cap restaurant-stock pick — it is good for investors interested in MCD to be aware of the bull and bear cases surrounding the stock, no matter what our rating on the shares is.

Read More

WEN A Look at Potential Details for Wendy’s Upcoming Loyalty Program

By Mark Kalinowski Published on June 30, 2020 at 12:00 AM

Wendy’s (WEN; Neutral, $21.66) is getting closer than ever to launching its loyalty program — apparently to be called “Wendy’s Rewards” — for U.S. guests. On Wendy’s May 6th conference call, CEO Todd Penegor stated that “As we have stressed before, frequency remains an opportunity for us. And it will be more important than ever, as normal routines resume in the months to come. We will be looking to our loyalty program to help us solve for this, and the team has been preparing diligently for a launch in the near future. We believe that we have built a loyalty program that people will love. And we could not be more excited to get this into the hands of our customers.”

Read More