By Mark Kalinowski
Published on May 6, 2019 at 12:00 AM
In our April 8th report “Tidbits re: Burger-Sector Same-Store Sales Trends, and SBUX,” we noted that “With March 2019 now in the rear-view mirror, we are pleasantly surprised that this month appears to have turned out very well for burger-sector same-store sales. In fact, based on our proprietary, data-driven checks, the midsingle digit number put up by U.S. quick-service burger chains for March 2019 looks like the best month in this regard since February 2016, for which some concepts (depending on their accounting methodologies) were helped by that month’s extra Leap Day.”
Read More
By Mark Kalinowski
Published on May 1, 2019 at 12:00 AM
Earlier today, Yum Brands (YUM; Buy) reported Q1 adjusted EPS of $0.82, surpassing our $0.72 forecast (which had incorporated an anticipated -$0.09 hit from markto-market of Yum’s investment in GrubHub [GRUB; Not Rated]) and the $0.81 consensus number (likely not apples-to-apples with our forecast). Yum notes that “We reflected the change in fair value of our investment in Grubhub by recording $20 million of pre-tax investment expense, resulting in a negative ($0.05) impact in EPS.”
Read More
By Mark Kalinowski
Published on April 22, 2019 at 12:00 AM
Ahead of Yum Brands’ (YUM; Buy) first-quarter earnings release — scheduled for before the market open on Wednesday, May 1st — we look at a key positive and a key risk surrounding YUM. Most importantly on the positive side of the ledger, based on our data-driven checks, we raise our Q1 same-store sales forecast for Taco Bell by one percentage point, to +5%, as we believe that brand’s momentum, innovation, and differentiation continue to pay off. Promotions during various parts of the first quarter included Steak Rattlesnake Fries, the Steak Rattlesnake Burrito, the return of the Naked Chicken Chalupa, and the return of Nacho Fries. Our Q2E same-store sales forecast is also boosted by one percentage point, to +4%, and that is not a bestcase scenario if the second quarter trends well. We’ll see…
Read More
