PZZA Every Long Journey Begins with the First Steps

By Mark Kalinowski Published on May 7, 2019 at 12:00 AM

After Tuesday’s market close, Papa John’s (PZZA; Buy) reported adjusted Q1 EPS of $0.31, surpassing our $0.24 estimate and sell-side consensus (according to Consensus Metrix) of $0.24. We attribute the earnings outperformance primarily to better-than-expected Domestic Company-Owned Restaurant Expenses/Domestic Company-Owned Restaurant Sales (33.4% actual vs. 35.5% projected).

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MCD (Post-Call) Score Another One for the Campaign to Re-Elect Mayor McCheese

By Mark Kalinowski Published on October 23, 2018 at 12:00 AM

Earlier today, McDonald’s (MCD; Buy) reported Q3 EPS of $2.10, exceeding our $2.01 forecast and sell-side consensus of $1.99 (as measured by Consensus Metrix). Factors helping Q3 EPS included better-than-expected same-store sales in all four regions (U.S., International Lead Markets, High Growth Markets, and Foundational), better-than-expected SG&A/Revenues (9.6% actual vs. 10.3% projected), and a more favorable-than-projected tax rate (help of about $0.05). Given the Q3 outperformance of $0.09, our full-year 2018E EPS estimate goes up by $0.09, to $7.78.

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