John Gordon

Best and Worst Performing Stocks This Earnings Season

We monitor the chain restaurant universe. In viewing research and press reports, we hope someday corporate earnings analytics can be improved by the following:

1. Less reliance on the prior year percentage change and more focus on the trend and the dollar change. The old saying, you take dollars to the bank and not percentages still rings true. For example, same store sales could be compared to the 2 year, 5 year, etc. compound annual growth rate (CAGR). All those numbers are available.

2. For retailers/restaurants with multiple units, dollar profit per company owned or franchised store would be an improvement. Companies may get credit in the business press for a revenue increase, while per store profit contribution could be falling.

All these are non-GAAP numbers that are available and could be reported.

John A. Gordon
Chain Restaurant Earnings and Economics Experts
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