By Mark Kalinowski
Published on November 6, 2019 at 12:00 AM
Earlier today, Wendy’s (WEN; Buy) reported adjusted Q3 EPS of $0.19, coming in ahead of our $0.15 forecast and sell-side consensus (according to Consensus Metrix) of $0.15. We attribute the earnings beat to two main factors: (1) better-thanexpected success of Spicy Chicken Nuggets, which drove Q3 same-store sales up by +4.4%, the third-best quarterly showing this decade, and (2) a more favorable-thanexpected adjusted tax rate.
Read More
By Mark Kalinowski
Published on July 25, 2019 at 12:00 AM
After Thursday’s market close, Starbucks (SBUX; Buy) reported adjusted fiscal Q3 EPS of $0.78, surpassing our $0.73 forecast and sell-side consensus (according to Consensus Metrix) of $0.72. We attribute the earnings outperformance largely to better-than-expected same-store sales gains in the U.S. and in international markets.
Read More
By Mark Kalinowski
Published on April 23, 2019 at 12:00 AM
So far this year, McDonald’s (MCD; Buy) U.S. same-store sales seem to be meaningfully outpacing those of its quick-service burger rivals. Why is this? How sustainable is it? While there are multiple reasons for McDonald’s success so far this year — for example, we believe fresh-beef Quarter Pounders and Quarter Pounder line extensions have sold rather well — this report focuses on improvements that we believe have been made in terms of average speed at the drive-thru. We believe there is room for significant improvement on this front, those improvements have started, and there’s plenty more to be had over time — all of which is good news for future same-store sales trends. We reiterate our Buy rating on MCD and note the following:
Read More
