Wed, Jun. 3, 3:09 PM
- There's quite a bit of action in the hamburger sector.
- Wendy's (NASDAQ:WEN) says it aims to open 1,000 new restaurants by 2020 in an aggressive push.
- The company isn't the only one looking to increase its store count. IPO high-fliers Shake Shack (NYSE:SHAK) and Habit Restaurants (NASDAQ:HABT) are expanding along with Smashburger and Five Guys. All four chains are looking to build off their differentiated concepts.
- Sector giant McDonald's (NYSE:MCD) is pushing innovation at its fastest pace in years. All-day breakfast and a Create Your Taste customization platform are two of its initiatives.
- Sonic (NASDAQ:SONC), Burger King (NYSE:QSR), and Jack in the Box (NASDAQ:JACK) have shown blazing same-store sales growth to start the year. The trio bumps up against a tougher compare in Q2.
- Though store traffic trends have been favorable, two drags on profits in the burger sector are entry-level wage increases and escalated beef costs.
Wed, Jun. 3, 8:01 AM
- Wendy's (NASDAQ:WEN) announces a new $1.4B share buyback program.
- A Dutch auction tender announced earlier is part of the fresh buyback program.
- The company also raised its view on 2015 EPS to $0.31-$0.33 vs. $0.34 consensus.
- Previously: Trian Group to trim sizable position in Wendy's
- WEN +4.04% premarket.
Wed, Jun. 3, 7:43 AM
- Wendy's (NASDAQ:WEN) announces a Dutch auction tender for $639M in stock as part of its buyback program.
- The company also discloses that The Trian Group intends to reduce its ownership stake in Wendy's to 17%-19.68% from a current position of 24.8% of outstanding shares.
- The activist investment firm tipped off its intention to sell shares of Wendy's earlier in the year.
- WEN -1.9% premarket to $10.89.
Wed, May 6, 9:11 AM
Wed, May 6, 7:44 AM
- Wendy's (NASDAQ:WEN) says same-restaurants sales increased 3.2% system-wide in Q1.
- Higher sales at stores that were part of a reimaging program were a significant factor.
- North America company-owned restaurant margin +160 bps to 14.7%.
- G&A expenses fell 14.3% to $60.3M on a system optimization push.
- Adjusted EBITDA margin +360 bps to 18.0% off the same system optimization improvements.
- The company says it plans to sell its bakery operations.
- Guidance: High single-digit EPS growth seen for 2016 and 2017 before a return to mid-to-high teen EPS growth.
- Previously: Wendy's beats by $0.01, misses on revenue
- WEN +0.7% premarket.
Wed, May 6, 7:31 AM
Mon, May 4, 11:40 AM
- There's a decent little hamburger rally underway, although it doesn't include sector giant McDonald's.
- Habit Restaurants (HABT +3.4%), Shake Shack (SHAK +5.4%), Jack in the Box (JACK +0.8%), Restaurant Brands (QSR +1.5%), Wendy's (WEN +2.4%), and Sonic (SONC +0.8%) are out all ahead of the Golden Arches on its turnaround day.
- Previously: McDonald's unveils turnaround plan
- Previously: McDonald's lower after detailing turnaround strategy
Fri, May 1, 4:17 PM
Tue, Apr. 28, 10:06 AM| Tue, Apr. 28, 10:06 AM | 1 Comment
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
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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
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