Under its System Optimization program, Wendy’s plans to sell ~500-plus company-owned restaurants to franchisees by the end of 2016.
In 2015, Wendy’s plans to sell 480 restaurants in the US and Canada and another 260 restaurants in 2016. These sales should generate $400 million–$475 million.
Wendy’s same-store sales grew 3.1% in 1Q15, compared with 0.8% in 1Q14. Same-store sales grew as a result of traffic and ticket growth.
Wendy’s reported EPS of $0.06 for 1Q15, which increased an impressive 20%, compared with EPS of $0.05 in 1Q14. This also beat analyst estimates of $0.05.
Macy’s is trading at lower valuations compared to its key rivals. As of May 8, 2015, Macy’s (M) was trading at a forward price-to-earnings (or PE) ratio of 13.5x.
Macy’s (M) is expanding its beauty business with the acquisition of Bluemercury, a luxury beauty products and spa services retailer.
On May 5, 2015, Macy’s (M) announced that it will enter the off-price business through four pilot stores in New York City.
Macy’s 1Q15 earnings might be impacted by restructuring plans, investment in digital retailing channels, and costs related to store closings and openings.
Analysts expect Macy’s 1Q15 sales to come in at $6.3 billion, up 0.6% from the company’s reported sales in the comparable quarter of last year.
The pace of wage gains for the retail sector has been slower than growth rates experienced in pre-recession times.
Food and beverage retailers (XRT) (XLP) added 3,600 jobs in April, the largest payroll increase in the retail sector.
The Bureau of Labor Statistics released the Employment Situation report on May 8. US non-farm payroll additions came in at 223,000 in April 2015.
Papa John’s (PZZA) reported its earnings on May 5 after the market closed. The next trading day, shares began trading at $64.56, up 5% from the previous day’s close.
During 1Q15, Papa John’s (PZZA) introduced several technological initiatives, including a point of sale system called FOCUS.
During the first quarter, same-store sales grew 6.5% in the North American market and 7.7% in the international markets for Papa John’s (PZZA).
During 1Q15, Papa John’s (PZZA) saw unit growth of 6% year-over-year. The company added 80 new franchise restaurants, bringing the franchise unit count to 4,008.
Papa John’s (PZZA) released its first quarter earnings on May 5, 2015. Shares rose 4% on the earnings announcement.
As of noon Eastern Time on May 8, Monster Beverage stock was trading at $131.50, down 8.4% compared with May 7. As discussed in the previous part of this series, the…
Unlike Monster Beverage’s operating margin, the company’s 1Q15 gross margin improved to 58.9% in 1Q15 from 53.5% in 1Q14.
Monster Beverage expects its Monster Unleaded, Ultra Sunrise, and Ultra Citron lines, as well as Rehab Peach Tea + Energy, to perform well in 2015.