By Mark Kalinowski
Published on October 29, 2020 at 12:00 AM
After today’s market close, Starbucks reported adjusted fiscal Q4 EPS of $0.51, ahead of our $0.33 estimate and sell-side consensus (according to Consensus Metrix) of $0.31. Factors in the EPS beat included: (1) a favorable tax rate (approximately 14.3% actual, vs. our 26.0% forecast), (2) better-than-expected Store Operating Expenses/Company-Operated Retail Sales (51.9% actual vs. our 54.7% forecast), and (3) better-than-anticipated G&A/Revenues (6.0% actual vs. our 6.9% forecast), partially offset by other factors (such as D&A/Revenues of 5.9% actual vs. our 5.3% projection).
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By Mark Kalinowski
Published on October 29, 2020 at 12:00 AM
Earlier today, Yum Brands reported adjusted Q3 EPS of $1.01, ahead of our $0.83 forecast and sell-side consensus (according to Consensus Metrix) of $0.81. Third-quarter company-owned restaurant margins came to 17.9%, better than our 17.3% estimate and consensus of 16.1%. Taco Bell in particular generated very good restaurant-level margins (27.5% in Q3), although on today’s conference call management commented that over time margins should become more normalized as larger orders may become less of the overall sales mix.
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By Mark Kalinowski
Published on October 29, 2020 at 12:00 AM
Earlier today, Dunkin’ Brands Group (DNKN; Neutral, $100.73) reported adjusted Q3 EPS of $0.93, ahead of our $0.81 forecast and sell-side consensus (according to Consensus Metrix) of $0.80. Helping to drive the beat were: (1) Occupancy Expenses for Franchised Restaurants/Franchise Fees and Royalty Income (5.2% actual vs. our 6.1% estimate), and (2) Depreciation & Other/Total Revenues (1.4% actual vs. our 1.6% estimate). The 24.2% adjusted tax rate was also more favorable than our 26.2% estimate, helping Q3 adjusted EPS by about +2 cents.
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