RECENT Consumer Discretionary RESEARCH
Consumer confidence in the United States is at an all-time high in seven years, and people are spending more on food prepared outside the home.
Bloomin’ Brands’ (BLMN) third quarter earnings were released on November 4. The company reported diluted earnings per share (or EPS) of $-0.09. The adjusted EPS was $0.10.
Pilgrim’s Pride has a market cap of $7.2 billion and is a subsidiary of JBS USA Holdings, which owns 75.5% of the company.
This restaurant industry does well when the economy is expanding and poorly when the economy is contracting. In other words, it’s cyclical.
MGM Resorts (MGM) is a global hospitality and entertainment company. MGM develops, builds, and operates destination resorts. MGM was founded in 1986.
Burger King’s third quarter earnings were released on November 4, 2014. The company reported an adjusted earnings per share (or EPS) of $0.27.
Wynn Resorts (WYNN) is a leading developer, owner, and operator of destination casino resorts.
PENN’s operated facilities feature ~31,000 gaming machines, 760 table games, and 3,100 hotel rooms. PENN owns and operates gaming and racing facilities with a focus on slot machines.
Noodles & Company (or NDLS) was founded in 1995. It’s a fast-casual restaurant chain that serves classic noodle and pasta dishes.
Dunkin Brands Group Inc, or Dunkin, operates two brands—Dunkin’ Donuts and Baskin-Robbins. At the end of the third quarter, Dunkin’ Donuts had over 18,400 system-wide franchised distribution points around the world.
Brinker International Inc. (EAT) operates full-service casual dining restaurants. It operates restaurants worldwide under the brand names Chili’s Grill & Bar and Maggiano’s Little Italy.
In the third quarter earnings, McDonald’s reported a diluted EPS of $1.09. It declined by 28%—compared to an EPS of $1.52 in the same quarter last year.
Fiesta Restaurant Group Inc. (FRGI) owns, operates, and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana.
Revenues were positively impacted by strong performance in the casino segment. Operating income was positively driven by stronger operating results across Las Vegas Sands’ Macao properties.
Chipotle Mexican Grill’s (CMG) third quarter earnings were released on October 21, 2014. It reported an adjusted EPS of $4.15. It increased by 56%.
Yum! Brands (YUM) released its third quarter earnings on October 7, 2014. The company reported adjusted earnings per share (or EPS) of $0.87.
The casino business model entails a significant amount of leverage use, in which the effects could be magnified to have a positive impact on equity. Land-based casinos are inherently highly leverage businesses that usually need to build properties, whether they’re tribal casinos in Oklahoma or multipurpose complexes in Macau.
Some blame it on outdated regulations. Some blame it on increased competition from neighboring states. Some blame it on poor or complacent management. But they all agree on one thing: Atlantic City’s casino market is crumbling.
The value proposition of GME starts (and ends) with the premise that gamers seek salvage value from their games, particularly those shiny new $60 ones.
During the last few days there have been a number of economic indicators and earnings releases for the retail sector.