Bill Ackman Thanks Warren Buffett for His Fund’s Comeback in 2019
Bill Ackman has made a huge comeback in 2019.
Hospitality & Restaurants
Everything you need to know about news affecting hotels, restarants and other businesses in the hospitality sector.
Domino’s Stock Rises after J.P. Morgan’s Upgrade
Today, J.P. Morgan upgraded Domino’s Pizza (DPZ) from “neutral” to “overweight” while keeping its 12-month price target at $270.
McDonald’s Fourth-Quarter Same-Store Sales Growth
In the fourth quarter, McDonald’s (MCD) posted global same-store sales growth of 4.4%, which beat analysts’ expectation of 3.9%.
Why Disney Is Spending $25 Million per Year on Staff Education
The Walt Disney Company is among those large American companies that have launched back-to-school programs for their employees.
What Analysts Expect from McDonald’s Revenue in 2019
In the first three quarters of 2018, McDonald’s (MCD) revenue fell 9.3% to $15.86 billion.
What Drove Starbucks’s Revenue in 2018?
In fiscal 2018, Starbucks (SBUX) posted revenue of $24.72 billion, a rise of 10.4% from $22.39 billion in fiscal 2017.
How Is Darden Restaurants Expanding Its Business?
At the end of the second quarter of fiscal 2019, Darden Restaurants (DRI) operated 1,762 restaurants.
Why Oracle Considers the AT&T Deal One of the Biggest
Last year, Oracle and AT&T entered into an agreement through which Oracle will migrate thousands of existing Oracle databases on AT&T’s network to Oracle cloud.
Understanding Starbucks’s Dividend Policy
On June 19, Starbucks (SBUX) announced a quarterly dividend of $0.36, which represents a 20% rise from its previous dividend of $0.30.
Mattel: S&P 500’s Top Gainer on April 11
Mattel, which is an American multinational toy manufacturing company, was the S&P 500’s top gainer on Wednesday.
Why McDonald’s EBIT Margin Expanded in 2018
McDonald’s (MCD) has posted EBIT (earnings before interest and tax) of ~$8.9 billion, which represents an EBIT margin of 38.8%.
McDonald’s Posts Strong Same-Store Sales Growth in 2017
MCD posted SSSG of 3.8%, 1.5%, -1.0%, and 0.2% in 2016, 2015, 2014, and 2013, respectively.
Why McDonald’s Revenues Declined in 2017
In 2017, McDonald’s (MCD) posted revenues of ~$22.8 billion, which represents a fall of 7.3% from ~$24.6 billion in 2016.
Will 2018 Be a Good Year for Pizza Companies?
All major pizza companies have announced their 4Q17 earnings, so it’s time to compare their performance.
What Analysts Expect for McDonald’s Revenue in 2018
Revenue expectations In 2018, analysts expect McDonald’s (MCD) to post revenue of $21.1 billion, which represents a fall of 7.7% from its revenue of $22.8 billion in 2017. As part of its optimizing strategy, McDonald’s has been refranchising its company-owned restaurants. The refranchising is expected to lower the company’s revenue in 2018. However, some of […]
How Wendy’s Valuation Multiple Compares to Its Peers
The initiatives taken by Wendy’s management to drive SSSG appear to have led to a rise in WEN stock and a higher valuation multiple.
What Analysts Expect for Wendy’s Revenue in 2018
For 2018, analysts are expecting Wendy’s (WEN) to post revenue of $1.3 billion, which represents a growth of 2.6%.
What Drove Wendy’s Same-Store Sales Growth in 4Q17?
Wendy’s (WEN) posted SSSG (same-store sales growth) of 1.3% in the North American region compared to 0.8% in 4Q16.
Domino’s Valuation Multiple Compared to Its Peers
As of February 14, 2018, Domino’s was trading at a forward PE multiple of 26.5x compared to 31.8% before the announcement of its 3Q17 earnings.
How Yum! Brands Is Expanding Its Business
At the end of 4Q17, Yum! Brands operated 45,804 restaurants, which included 21,487 KFC restaurants, 16,748 Pizza Hut restaurants, and 6,849 Taco Bell restaurants.
What Will Drive RCL’s Dividends?
Royal Caribbean Cruises (RCL) has five-year dividend growth of 39%.
How McDonald’s Is Expanding Its Business
By the end of 4Q17, McDonald’s (MCD) operated 37,241 restaurants, which includes 3,133 company-owned restaurants and 34,108 franchised restaurants.
What Drove Starbucks’s Earnings per Share in Fiscal 2017?
In fiscal 2017, Starbucks (SBUX) posted adjusted EPS (earnings per share) of $2.06, which represents growth of 7.9% from its $1.91 in fiscal 2016.
Hilton Worldwide Holdings Looks Promising despite a Tough 2017
Hilton Worldwide Holdings’ (HLT) revenue grew 3% in 2016. Management and franchise fees, timeshare, and other revenues from managed and franchised properties drove the growth in 2016, offset by owned and leased hotels.
What’s Driving Wendy’s Stock Price
In this series, we’ll look at analysts’ earnings and revenue estimates for the next four quarters. We’ll also review Wendy’s valuation and analysts’ recommendations.
How Do Pizza Companies’ Valuation Multiples Compare?
Due to the high visibility of their earnings, we’ve opted to use the forward PE (price-to-earnings) multiple for our valuation analysis of the pizza companies in this series.
What Analysts Recommend for Chipotle
Target price As of December 28, 2017, Chipotle Mexican Grill (CMG) was trading at $294.06. On the same day, analysts were expecting the stock to reach $317.26 in the next four quarters, which represents a return potential of 7.9%. Before the announcement of Chipotle’s 3Q17 earnings, analysts had forecast a 12-month target price of $375.46. […]
McDonald’s Valuation Multiple Compared to Its Peers
As of October 25, 2017, McDonald’s was trading at a forward PE multiple of 23.66x compared to 23.57x before the announcement of 3Q17 earnings.
How Fast Food Restaurants’ Valuation Multiples Stack Up
Wendy’s (WEN) has been trading above its peers’ valuation multiple.
Boston Properties Maintained Profitability with Development Projects
BXP leased properties with a total area of 926,000 square feet in 2Q17.
Macao Casinos Hope Hotel Supply Will Drive Demand
Macao’s casinos are trying to change Macao from a gaming-only destination to more of a Las Vegas–like destination.
Marriott’s Revenue Is Now Expected to Go This Way in 2017
In 2Q17, Marriott’s revenues grew 49% YoY to $5.8 billion, compared with $3.9 billion in 2Q16, due to higher fee revenues and RevPAR and room growth.
How Hyatt’s Valuation Compares
Current valuation Hyatt (H) currently trades at a forward EV-to-EBITDA multiple of 15.1x. Hyatt’s valuation is significantly higher than its average valuation since January 2010 of 13.0x. Peer comparison Hyatt’s valuation is among the highest in its peer group. Marriott International (MAR) has a multiple of 15.3x, Hilton Worldwide Holdings (HLT) is trading at a […]
Carnival: Strong Brands Help Develop Market Niche
Carnival is among the most profitable and financially strong leisure travel companies in the world. It provides leisure travel to all major cruise destinations across the globe.
Average Daily Rate Will Drive US Hotel Industry Growth
The average daily rate (or ADR) measures the average room price paid in the market. In 1Q17, the ADR rose 2.5% year-over-year (or YoY) to $124.27.
US Hotel Industry Supply to Outpace Demand in 2017
The US hotel industry saw its largest revenue fall of 14% year-over-year (or YoY) in 2009. Since then, recovery has been steep.
Coffee Futures: Arabica Down, Robusta Up in the Week Ended June 23
In this series, we’ll explore the price movements of five soft commodities—coffee, sugar, cocoa, orange juice, and cotton. Arabica coffee, which is considered superior in flavor and quality to Robusta coffee, has seen its futures price falling during the past six months.
Chemours to Take New Measures to Eliminate Waste in Fayetteville
Chemours stock fell 1.9% for the week and closed at $36.0. CC stock has been in a downward trend since May.
American Express to Ride on Partnerships, Digitization
American Express (or Amex) (AXP) has entered into digital partnerships with Airbnb, Facebook (FB), and Uber in order to offset the revenue loss from Costco (COST).
How Domino’s Pizza’s Valuation Multiple Compares to Its Peers
Domino’s better-than-expected SSSG and earnings in 1Q17 appear to have increased investor confidence, leading to rises in DPZ stock and its PE multiple.
Analyzing McDonald’s Valuation Multiple
As of May 24, 2017, McDonald’s was trading at a PE multiple of 22.6x—compared to 21.3x before the announcement of its 1Q17 earnings.
Why Baskin-Robbins Had Negative Same-Store Sales Growth in 1Q17
In 1Q17, Baskin-Robbins, which operates under the umbrella of Dunkin’ Brands (DNKN), had SSSG of -2.4% in the United States and -2.0% in international markets.
Dunkin’ Donuts: Same-Store Sales Growth Lower Than Estimates
In 1Q17, SSSG for Dunkin’ Donuts, which operates under the umbrella of Dunkin’ Brands (DNKN), was flat in the United States.
How Starbucks’s Valuation Compares to Peers
For the next four quarters, analysts are expecting Starbucks to post EPS growth of 12.8%.
Where McDonald’s Valuation Multiple Stands Next to Peers
As of April 19, 2017, McDonald’s was trading at a PE multiple of 21.1x, as compared to 19.9x before the announcement of its 4Q16 earnings.
Why Panera’s Valuation Multiple Rose after JAB’s Offer
As of April 5, 2017, Panera was trading at a forward PE multiple of 38.8x—compared to 32.6x before the acquisition rumor started to surface on April 3.
Recommendations for Panera: Why Analysts Favor a ‘Buy’
Of the 28 analysts covering Panera (PNRA), 71.4% have given it a “buy” recommendation, and 28.6% have given it a “hold.”
Why Hotel Investors Should Follow Construction Pipeline Data
According to STR Global’s US Construction Pipeline Report for January 2017, rooms under contract rose 16.1% to reach 576,000 rooms in 4,763 hotel properties.
What a Strong US Dollar Means for the US Hotel Industry
The strength of the US dollar measured against currencies that are widely used in international trade is measured by the Trade Weighted Dollar Index.
Why Economic Growth Is Important for the US Hotel Industry
A booming economy allows people to spend money on discretionary items such as air travel, so hotel revenues are higher during economic growth and lower during economic contraction.