By Mark Kalinowski
Published on September 29, 2020 at 12:00 AM
With this report, we update our data-driven Kalinowski Quick-Service Burger Index for Q3E to +3.6%. This figure is based on our latest proprietary checks/data as regards same-store sales performance for this segment during July 2020 and August 2020, as well as our best guess for what September 2020 is bringing us. The approximate monthly figures we use are +2% to +3% for July 2020, +3% to +4% for August 2020, and approximately +6% for September 2020.
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By Mark Kalinowski
Published on August 5, 2020 at 12:00 AM
Earlier today, Wendy’s (WEN; Buy, $23.81) reported adjusted EPS of $0.12, matching our recently-raised $0.12 forecast, and coming in one cent above sell-side consensus (according to Consensus Metrix) of $0.11. Although company-operated restaurantlevel margins in Q2 at 14.4% were down year-over-year, they still amounted to a figure above our 12.0% projection and consensus of 11.3%. Wendy’s cites “a higher average check, labor efficiencies, and other dining room closure related efficiencies” as positive factors. Management also pointed to quicker drive-thru speeds.
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By Mark Kalinowski
Published on July 28, 2020 at 12:00 AM
Earlier today, McDonald’s (MCD; Buy, $199.26) reported Q2 EPS of $0.65, short of our $0.85 forecast and sell-side consensus (according to Consensus Metrix) of $0.73. There was a $31 million one-time payment to distribution centers for obsolete inventory, and an increase in bad debt reserve (related to rents and royalty deferrals) of $45 million. By our math, these items combined represent about 8 cents on an EPS basis. For more info see today’s 8-K at:
http://d18rn0p25nwr6d.cloudfront.net/CIK-0000063908/ fea3a523-303b-43df-830a-5228f5ee4148.pdf
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