PepsiCo’s operating margin for 4Q14 decreased by 175 basis points to 10.2% compared to 4Q13, primarily due to pension settlement and restructuring charges.
PepsiCo’s Frito-Lay snack division’s revenue increased by 3% due to higher volume and pricing in 4Q14.
PepsiCo’s 4Q14 revenues declined by 0.8% to $19.9 billion, compared to the prior year quarter.
On the day PepsiCo’s 4Q14 earnings were released, stock surged by 2.46%.
PepsiCo (PEP) is the second largest non-alcoholic beverage maker and the market leader in the snack food space in the US.
The dip in oil prices has led to improved consumer spending. The slump in oil (USO) prices acts as a tax cut for consumers.
As of February 18, 2015, Panera Bread (PNRA) had YTD returns of -12%. Wall Street analysts expect the company’s EPS to decline in the next 12 months.
Year-to-date, Domino’s stock is up 8.7%, as of February 20. It has rocketed 21% since the company’s last earnings release in October 2014.
Domino’s Pizza’s EBITDA margins are expected to increase to 19.27% year-over-year, up from 18.02%. Analysts also expect a sequential increase.
Domino’s initiatives include introducing specialty chicken to the menu in the second quarter of 2014. Specialty chicken is ordered as a side.
A restaurant can keep adding more restaurants and eventually capture new markets. Domino’s unit growth has increased for the last 12 quarters.
Sequentially, Domino’s same-store sales growth is expected to decline from 7.7% in the fourth quarter of 2014.
Wall Street analysts estimate that Domino’s revenues for the quarter will come in at $616 million, meaning 37% sequential growth over 3Q14.
Domino’s operates pizza restaurants. The Wall Street analyst consensus estimate for quarterly Domino’s earnings per share is $0.93, a substantial increase.
Let’s look at MGM Resorts’ (MGM) valuation. MGM’s consensus revenue estimates, given by Wall Street analysts, are expected to increase by 7.2% in 2016.
On February 17, MGM Resorts (MGM) reported its 4Q14 results. After the results were announced, Wall Street analysts reviewed the results.
MGM’s share price hasn’t been impacted much by the anti-corruption campaign in China. The campaign took a toll in 3Q14. Its business has ~33% exposure in Macau.
MGM’s liquidity ratios improved during 4Q14. This reflects that MGM’s ability to meet its short-term obligations is strengthening.
MGM derives one-third of its revenue from China. It witnessed a significant decline in revenue and earnings due to a lack of VIP participation.
Hotel revenue at MGM’s wholly owned domestic resorts for the three months ending December 31, 2014, increased 6% YoY.