By Mark Kalinowski
Published on April 30, 2020 at 12:00 AM
Earlier today, McDonald’s (MCD; Neutral, $183.93) reported Q1 EPS of $1.47, short of our $1.52 forecast and sell-side consensus (according to Consensus Metrix) of $1.55. SG&A/Revenues of 12.5% (versus our 11.7% projection) accounts for the difference between Q1 EPS and our EPS estimate. However, part of this SG&A relates to non-recurring costs, such as $40 million for the company’s cancelation of its biannual worldwide convention, and $20 million for “payments of contractual obligations as [McDonald’s] reduced the scope and ongoing spend in R&D work of certain restaurant technology.”
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By Mark Kalinowski
Published on May 8, 2019 at 12:00 AM
Earlier today, Wendy’s (WEN; Neutral) reported adjusted EPS of $0.14, surpassing our $0.11 estimate and sell-side consensus (according to Consensus Metrix) of $0.11. Relative to our model, outperformance came from: (1) better-than-expected G&A/Revenues (12.1% actual vs. 12.7% estimated), (2) better-than-expected Cost of Sales/Sales (85.0% actual vs. 85.8% forecasted), (3) lower-than-projected Interest Expense ($29.1 million actual vs. $30.1 million projected), and (4) a somewhat more favorable tax rate than anticipated (20.0% actual vs. 22.5% forecasted). These positives were partially offset by some other factors, such as higher-than-anticipated Other Operating Expenses.
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By Mark Kalinowski
Published on February 7, 2019 at 12:00 AM
Earlier today, Yum Brands (YUM; Buy) reported adjusted Q4 EPS of $0.40, which includes a -$0.41 impact from mark-to-market related to the company’s investment in GrubHub (GRUB; Not Rated). Even adding this $0.41 back, EPS would have been short of our $0.99 forecast and the sell-side consensus (according to Consensus Metrix) of $0.97 (more on this shortly).
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