Wed, Apr. 8, 10:51 AM
- McDonald's (MCD +0.5%) will add premium burgers to its menu in a trial run.
- The sirloin products are expected to hit menus on May 12 and be priced around $5 by the company while franchisees can set their own prices.
- The McDonald's premium burger lineup: The Steakhouse Third Pound (sauteed mushrooms, white cheddar, grilled onions, peppercorn sauce), The Bacon & Cheese Sirloin Third Point (bacon,red onion, white cheddar), The Lettuce & Tomato Sirloin Third Pound (leaf lettuce, tomato, red onion, white Cheddar, pickles mayo, beef seasoning).
- Shake Shack (SHAK -1.7%), Wendy's (WEN -0.9%), and Hardee's are active in the premium burger category.
Thu, Apr. 2, 10:08 AM
- The wage increases announced by McDonald's (MCD -0.4%) will account for about a 1% earnings headwind in 2016, according to an estimate from Credit Suisse.
- The company only runs about 10% of its U.S. stores and the initiative doesn't impact stores in global markets.
- Fast-food chains with a high concentration of company-owned stores in the U.S. could feel some pressure to match the wage policy of McDonald's, notes CS.
- To varying degrees, those chains could include Sonic (NASDAQ:SONC), Jack in the Box (NASDAQ:JACK), Wendy's (NASDAQ:WEN), Denny's (NASDAQ:DENN), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Taco Bell (NYSE:YUM), and Burger King (NYSE:QSR).
- Previously: McDonald's raises wages in U.S. (Apr. 01 2015)
Sat, Mar. 7, 10:13 AM
- A powerhouse quarter of improved comps and widened margins is in the books for the restaurant industry as investors look forward to see if the trend extends.
- The industry is in a growth phase with eating and drinking establishments adding 58.7K jobs in February on a seasonally adjusted basis to mark the biggest monthly gain since December of 2012.
- The early read on Q1 traffic is favorable (ex-weather), although chains could see some wage inflation pressure and innovation outlays with differentiated concepts popping up at Habit Restaurants (NASDAQ:HABT), Zoe's Kitchen (NYSE:ZOES), Shake Shack (NYSE:SHAK), and a host of others.
- Major digital initiatives at chains such as Panera Bread (NASDAQ:PNRA) and Starbucks (NASDAQ:SBUX) also have the potential to be disruptive.
- A few screens to pick through the restaurant stock menu are listed below.
- Lowest forward P/E ratio: McDonald's (NYSE:MCD), Ruth's Hospitality (NASDAQ:RUTH), and Cracker Barrel (NASDAQ:CBRL).
- Lowest price/free cash flow ratio: Ruby Tuesday (NYSE:RT), Nathan's (NASDAQ:NATH), Jack in the Box (NASDAQ:JACK).
- Dividend yield +3%: DineEquity (NYSE:DIN), Darden Restaurants (NYSE:DRI), McDonald's, and Arcos Dorados (NYSE:ARCO).
- Top YTD performers: Jack in the Box (JACK), Wendy's (NASDAQ:WEN), Sonic (NASDAQ:SONC), El Pollo LoCo (NASDAQ:LOCO).
- PEG ratio below 2.00: Chuy's Holdings (NASDAQ:CHUY), Ruth's Hospitality, Krispy Kreme Donuts (NYSE:KKD), Cheesecake Factory (NASDAQ:CAKE), Brinker International (NYSE:EAT), Denny's (NASDAQ:DENN), Buffalo Wild Wings (NASDAQ:BWLD).
- Short ratio below 2%: Yum Brands (NYSE:YUM), Jack in the Box (JACK), Chipotle (NYSE:CMG), DineEquity, Bloomin' Brands (NASDAQ:BLMN), Denny's (DENN), McDonald's (MCD).
- Previously: Restaurant stocks continue hot streak (Feb. 24)
Thu, Mar. 5, 8:29 AM
- A deeper dive into the Beige Book notes indicates some wage pressure is being seen in the U.S. at low-level positions, notes Bloomberg.
- The revelation could explain the round of minimum wage hikes over the last month - most notably at retail giant Wal-Mart.
- Analysts note that even a minor lift at the bottom of the wage structure puts some pressure that ripples up the chain.
- Beige Book: "A staffing firm in the Chicago District reported some companies were also willing to raise rates for unskilled workers to reduce turnover, and contacts in the Atlanta District noted increasing entry-level wages."
- Fast-food chains could be the next domino to fall.
- Previously: Beige Book takes note of oil prices and dollar (Mar. 04 2015)
- Related stocks: MCD, SONC, JACK, WEN, QSR, YUM, PZZA.
Mon, Feb. 23, 5:30 PM
- AIXG, ALKS, AMT, BMO, CBRL, CEQP, CLDT, CLDX, CMCSA, CMLP, COT, CRNT, CRZO, CYRN, DAKT, DCI, DPZ, DRH, DYAX, ECL, EXAS, EXLS, EXPD, FDML, GLDD, GTLS, HD, IART, IPXL, M, MNKD, NEO, ODP, PCRX, PF, PLL, RLGY, SAFM, SAH, SHLX, SHOO, SPAR, SPWR, SUI, THRM, TOL, TREX, TRXC, UTHR, VAL, VSI, WEN, WIN, WLK, WPC, ZINC
Thu, Feb. 19, 9:28 AM
- Shares of McDonald's (NYSE:MCD) are on watch after Wal-Mart announces a broad increase in hourly wages for its U.S. workers.
- The two companies have been the largest targets of labor protests over the last year over their wage policies.
- Fast-food chains Wendy's (NASDAQ:WEN), Burger King (NYSE:QSR), and Taco Bell (NYSE:YUM) have also seen more demonstrations than the remainder of the sector.
Wed, Feb. 18, 4:41 PM
Wed, Feb. 18, 10:46 AM
- Restaurants stocks are out-performing as a group after Jack in the Box, Qdboa, Tim Hortons, and Burger King all reported comparable-restaurant sales momentum this week.
- The recent round of earnings from the sector has confirmed analyst predictions of a benefit from lower gas prices in the U.S.
- The developments have also made the recent performance by McDonald's ((NYSE:MCD) -0.2%) look even more anemic.
- Previously: Let's talks $2 gas (Nov. 29 2014)
- Previously: Restaurant sales show sharp increase in January (Feb. 11 2015)
- Leading gainers: Jack in the Box (NASDAQ:JACK) +6.0%, BJ's Restaurants (NASDAQ:BJRI) +3.6%, Sonic (NASDAQ:SONC) +2.6%, Texas Roadhouse (NASDAQ:TXRH) +2.2%, Brinker International (NYSE:EAT) +2.1%, Luby's (NYSE:LUB) +2.0%, Wendy's (NASDAQ:WEN) +1.5%, Cheesecake Factory (NASDAQ:CAKE) +1.4%, Nathan's Famous (NASDAQ:NATH) +1.3%, Ark Restaurants (NASDAQ:ARKR) +1.3%.
Thu, Feb. 12, 9:43 AM
- The read on retail sales in the U.S. isn't nearly as bad as the headline -0.8% M/M drop for January.
- Retail sales were up 3.3% compared to a year ago with a few sectors showing strong growth.
- Restaurant sales +11.3% Y/Y: The strong read follows up on a positive report from Black Box Intelligence on the sector. CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
- Sporting goods +8.0% Y/Y: DKS, BGFV, CAB, HIBB, SPWH.
- Building material and garden +6.9% Y/Y: A favorable weather compare came to the aid of this category. HD, LOW, LL.
- Health and personal care +6.6% Y/Y: Online channels have contributed for companies selling beauty and health items. ULTA, SBH, CVS, WBA, RAD.
Wed, Feb. 11, 10:37 AM
- Chain restaurants recorded their strongest pace of same-store sales in six years during January at 6.1%, according to data from Black Box Intelligence.
- An easier weather compare, $2 gas, and a more stable economic backdrop were factors.
- Traffic was up 2.4% during the month.
- The sales lift was delivered without much help from McDonald's which saw a marginal +0.4% comp gain.
- Comp sales in the Midwest improved 11.2% after the region had a much easier time with weather during January than a year ago.
- Chains with a large focus in the Midwest include Steak 'n Shake (NYSE:BH), Jimmy John's, Culvers, and Bob Evans (NASDAQ:BOBE).
- Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
Thu, Feb. 5, 9:26 AM
- Susquehanna lifts its rating on Wendy's (NASDAQ:WEN) to Positive from Neutral.
- Earlier this week, Wedbush set Wendy's at Buy and Stephens upgraded to Overweight.
- Wendy's comp sales didn't dazzle in Q4 (except compared to MCD), but restaurant-level margin gains were seen.
- WEN +2.5% premarket and +20.8% YTD.
Tue, Feb. 3, 11:15 AM
- The integration of mobile ordering is a major theme in the restaurant industry this year.
- Starbucks (NASDAQ:SBUX) and Domino's Pizza (NYSE:DPZ) have raised the bar the highest, while peers have gone into chase mode.
- Today, Wendy's (NASDAQ:WEN) reported a significant 3% sales lift in a 35-unit test run of an app order/dedicated drive-through program (h/t Barbarian Capital, Wendy's Investor Day webcast ).
- Two companies struggling with their drive-through windows due to kitchen complexity, Panera Bread (NASDAQ:PNRA) and McDonald's (NYSE:MCD), have their eyes on in-store ways to boost sales. In the case of McDonald's, the plan is to use self-order kiosks.
- Chipotle (NYSE:CMG) reports Q4 results after the bell today where there will be a focus on if the company's new mobile app had any impact on pick-up orders.
Tue, Feb. 3, 7:49 AM
- Wendy's (NASDAQ:WEN) plans to sell another 500 restaurants to its franchisees.
- The announcement is part of a company goal to own just 5% of its stores by the middle of 2016 in order to reduce costs and smooth out cash flow.
- Wendy's turned a +1.9% comp in Q4 vs. -1.7% for McDonald's (closely overlapping).
- Previously: Wendy's -1.5% after issuing preliminary results
- WEN -1.5% premarket.
Tue, Feb. 3, 6:53 AM
- Wendy's (NASDAQ:WEN) reports preliminary results for Q4.
- Revenue -15% to $502M vs. $509M consensus.
- EBITDA +20.3% to $107.1M.
- EPS in-line at $0.10.
- The company reports same-restaurant sales increased 1.9% during the quarter.
- North American restaurant margin +50 bps to 16.8%.
- 2015 guidance: EBITDA of $390M-$400M expected. EPS of $0.33-$0.35 vs. $0.39 consensus.
- WEN -1.5% premarket.
Fri, Jan. 23, 11:25 AM
- Analysts note McDonald's is not a bellwether stock for the restaurant industry anymore as the sector has many more names putting in gains today than losses despite the poor sales report from the Golden Arches.
- The quick (and perhaps obvious) take from within the sector is that chains sticking with a simple laser-focused message are winning out. Chipotle, Wendy's, and Domino's all fit that description.
- The copycat approach of McDonald's (McCafe, wings, premium burgers) and Olive Garden (prior to Starboard) hasn't worked, while a measured pace to expansion in new markets has also paid off (Starbucks vs. KFC).
- Previously: Restaurant comps ignited off of $2 gas effect (Jan. 09 2015)
- Previously: $2 gas little help to McDonald's in Q4 (Jan. 23 2015)
- Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, BOBE, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, MFRD, ZOES, MCD, YUM.
Thu, Jan. 22, 8:26 AM
- The largest fast food company in the Philippines is hungry for an U.S. acquisition, according to a regulatory filing.
- Jollibee, which has strong sales and organic growth rates in SE Asia, would like to target a QSR player with a market value of at least $1B to make its U.S. entry.
- Hedgeye advises that Krispy Kreme (NYSE:KKD), Wendy's (NASDAQ:WEN), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Sonic (NASDAQ:SONC), and Jack in the Box (NASDAQ:JACK) are in play.
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