By Mark Kalinowski
Published on July 30, 2020 at 12:00 AM
Earlier today, Dunkin’ Brands Group (DNKN; Neutral, $71.68) reported adjusted Q2 EPS of $0.49, beating our $0.46 estimate, and matching sell-side consensus (according to Consensus Metrix) of $0.49. Relative to our model, GA&/Revenues caused the upside (18.2% actual vs. 20.0% forecasted).
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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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By Mark Kalinowski
Published on July 6, 2020 at 12:00 AM
Is it possible the Street is underestimating sales and market-share opportunities in 2021 for the larger publicly-traded quick-service pizza concepts? We believe that Domino’s (DPZ; Buy, $374.09) and Papa John’s (PZZA; Buy, $83.66) both remain well-positioned for the future for multiple reasons, but this particular factor may be underappreciated. Incidentally, it’s possible for Pizza Hut (owned by Yum Brands [YUM; Neutral, $86.55]) to benefit from the same issue, although Pizza Hut will over the short-to-medium term likely have to deal with net unit closures, limiting to some meaningful degree its opportunity to take market share from other pizza outlets’ closures.
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