McDonald's Corp

MCD posted SSSG of 3.8%, 1.5%, -1.0%, and 0.2% in 2016, 2015, 2014, and 2013, respectively.

In 2017, McDonald’s (MCD) posted revenues of ~$22.8 billion, which represents a fall of 7.3% from ~$24.6 billion in 2016.

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 […]

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.

For 2018, analysts are expecting Wendy’s (WEN) to post revenue of $1.3 billion, which represents a growth of 2.6%.

Wendy’s (WEN) posted SSSG (same-store sales growth) of 1.3% in the North American region compared to 0.8% in 4Q16.

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.

By the end of 4Q17, McDonald’s (MCD) operated 37,241 restaurants, which includes 3,133 company-owned restaurants and 34,108 franchised restaurants.

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.

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.

Unit growth By the end of 3Q17, Shake Shack (SHAK) was operating 143 restaurants—79 domestic company-owned restaurants, ten domestic franchised restaurants, and 54 international franchised restaurants. Unit growth In the last four quarters, Shake Shack has increased its restaurant count by 38 units—21 company-owned restaurants and 17 franchised restaurants. In 3Q17 alone, the company added […]

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.

Wendy’s (WEN) has been trading above its peers’ valuation multiple.

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.

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.

For the next four quarters, analysts are expecting Starbucks to post EPS growth of 12.8%.

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.

As of September 16, 2016, these five fast food restaurants were trading at a median PE multiple of 21.4x.

On August 29, 2016, Chipotle Mexican Grill (CMG) launched its latest promotional offer, targeting students in the back-to-school season.

In 2Q16, McDonald’s revenue declined by 3.6% from $6.5 billion to $6.3 billion.

According to Bloomberg, of the ten analysts surveyed, 45.5% have issued “buy” recommendations for Wendy’s, while 50% have issued “hold” recommendations.

According to a Bloomberg survey of 16 analysts, 62.5% have given “buy” recommendations for JACK, and 37.5% have given “hold” recommendations.

SSSG is an important metric for investors to monitor because it increases a fast-food company’s revenue without increasing capital investment.

Wendy’s Company (WEN) generates its revenue through company-owned restaurant sales, franchisee fees, rental income, and royalty collected from franchisees.

In July 2013, Buffalo Wild Wings developed a guest experience approach that uses a “captain” to help customers to access all entertainment options.

In addition to its marketing and promotional efforts, Chipotle Mexican Grill (CMG) launched a food safety website on February 8, 2016, which outlines the company’s enhanced food safety procedures.

Chipotle Mexican Grill (CMG) recorded overall same-store sales growth of -14.6% for 4Q15. It was -16% in November and -30% in December, according to the company.

Jack in the Box (JACK) manages marketing funds that include contributions from both its franchise and company-owned restaurants.

To speed up service, Jack in the Box (JACK) used a two-way intercom when it opened its first restaurant in 1951.

Since Jack in the Box’s acquisition of brand Qdoba Mexican Grill, now named Qdoba Mexican Eats, the brand has grown from a mere 85 restaurants to 661.

In 2003, when Jack in the Box (JACK) acquired Qdoba Mexican Grill for $45 million, Qdoba was operating 85 outlets with a total revenue of $65 million.

Headquartered in San Diego, California, Jack in the Box (JACK), was founded by Robert O. Peterson in 1951.

Let’s examine the management’s target for the restaurant operating margins for each of Yum! Brands’ divisions in 2016. Please note that the data excludes India.

A company’s incremental operating margin is calculated as the change in operating income divided by the change in revenue over a period.

Chipotle expects its 4Q15 same-store sales growth to range from -8% to -11%. This would be the first time in almost ten years the company expects to report negative same-store sales growth.

When the first cases of E. coli were linked to Chipotle, the company shut down 43 of its restaurants for a week.

Papa John’s was first to introduce online ordering at all of its US delivery restaurants in 2001 as well as first to introduce SMS text ordering in 2007.

In 2014, Papa John’s net profits as a percentage of total sales decreased by 0.2% due to increases in interest levels.

To maintain the quality and consistency of products, Papa John’s has QC (quality control) centers that supply ingredients to its restaurants.

In 2014, Papa John’s spent $63 million, or 4% of its total revenues, on advertising, whereas McDonald’s spent $808 million, or 2.9% of its total revenues.

While the latest unemployment rate indicates that the US economy is healthy, it’s important to remember that the labor force participation fell over time.

Shake Shack stated that its limited-time offers, the ShackMeister Burger and Roadside Shack, have been “big drivers” for its ticket and traffic growth.

In 1998, Papa John’s decided to venture outside the US by opening outlets in Mexico and Puerto Rico. In 1999, it acquired the UK’s Perfect Pizza Holdings.

Starbucks has about 5,239 restaurants in the CAP segment. It’s growing units at an average of 18.4% compared to the rest of the regions.

Same-store sales growth is one of the key revenue drivers for a restaurant company like Starbucks (SBUX), McDonald’s (MCD), and Darden Restaurants (DRI).

One of the key reasons why McDonald’s (MCD) stock has remained firm is because of its real estate portfolio.

Although Domino’s is spread over 75 countries, most of the company’s revenue comes from domestic markets and is more sensitive to economic conditions in the US.

Nearly 68% of the US GDP is composed of PCE or consumer spending. The negative value of net exports shows that the United States imports more than it exports, and this eats into the total economic output.

In 2Q15, Baskin-Robbins’s US same-store sales growth rate fell to 3.4% compared to 4.2% a year ago. This was driven by ongoing promotions and discounts and a 75% increase in online cake ordering.

McDonald’s (MCD) turnaround plan, which went into effect on July 1, 2015, will take several months to yield results as far as the company’s performance goes.