PZZA Possible Implications from Domino’s Lead to Updated Forecasts

By Mark Kalinowski Published on October 8, 2020 at 12:00 AM

Earlier today, Domino’s (DPZ; Buy, $403.46) reported a Q3 EPS miss relative to our expectations (and sell-side consensus). This miss was not caused by same-store sales trends, which came in above expectations for both the U.S. and International segments in Q3. Below the top line, multiple issues came into play, including spending related to the pandemic (such as higher pay for front-line employees, higher sick pay, and the need to buy more cleaning equipment), and what Domino’s described as all-time high cheese costs.

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MCD “Colores” Us Impressed Updating Our Q3E Forecasts (Again)

By Mark Kalinowski Published on October 5, 2020 at 12:00 AM

For the second time in a month, we raise our Q3E same-store sales forecast for McDonald’s U.S. — this time by +60 basis points, to +3.6%. This is based on robust same-store sales from the second half of September, thanks largely to: (1) a limitedtime promotional tie-in with rapper Travis Scott (which launched September 8th), and (2) a limited-time offer featuring Spicy Chicken McNuggets (which launched September 16th). Both of these promotions did so well that at times restaurants were sold out of the items involved well before the official promotional end dates.

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DPZ Updating Our Forecasts (Again)

By Mark Kalinowski Published on August 26, 2020 at 12:00 AM

Less than a week ago, we raised our Q3E same-store sales and EPS estimates in our report “DPZ: Updating Our Forecasts” (today’s report is best read in conjunction with that report). With this report, we further take up our Q3E same-store sales projection for Domino’s International business, by +150 basis points to +4.5%. Sellside consensus (according to Consensus Metrix) is at +2.0% as of this writing.

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