Will Restaurant Workers Unionize? Starbucks Workers Hope So
Starbucks’ Holiday Beverages and Decorative Cups Arrive for 2021
Starbucks Raises Minimum Wages to Combat Labor Shortages
Takeout Stocks to Invest in As Companies Get Earnings Season Upgrades
Opportunities and risks that Dunkin’ Brands investors must know
It’s no big secret that Dunkin’ Donuts has the highest relative leverage in the industry. Leverage comes with a number of risks— a substantial risk is the interest paid on debt.
Understanding Starbucks’ cost structure and operating expenses
Starbucks’ main cost driver is its price per pound of coffee beans. The two most consumed coffee beans are Arabica and Robusta blends.
How Does Starbucks’s Valuation Compare?
Valuation multiple Investors may want to look at valuation multiples when deciding whether to buy or sell stocks. Valuation multiples are driven by perceived growth, risks and uncertainties, and investors’ willingness to pay. Analysts use various multiples to evaluate stocks. In this article, we’ll use the PE (price-to-earnings) multiple due to its high visibility in […]
Starbucks and Analysts’ Earnings Estimates for Fiscal 2Q18
Analysts are expecting Starbucks (SBUX) to post adjusted EPS (earnings per share) of $0.53 in fiscal 2Q18, which represents a growth of 17.8%.
Weak Fiscal 3Q17 Sales Lower Starbucks’s Valuation Multiple
Valuation multiple We’ve used the forward PE (price-to-earnings) multiple for our analysis, due to its high visibility in Starbucks’s (SBUX) earnings. The forward PE multiple is calculated by dividing a company’s stock price by analysts’ earnings estimates for the next four quarters. Starbucks’s forward PE multiple Starbucks’ lower-than-expected SSSG (same-store sales growth) in fiscal 3Q17, lowering of […]
Strength in Initial Jobless Claims Is Positive for Restaurants
Initial jobless claims can help us gauge the health of the US labor market. It indicates the number of people filing for unemployment.
What Could Drive Starbucks’s Same-Store Sales Growth in 2016?
Over the past four quarters, Starbucks’s same-store sales growth has increased due to growth in ticket and traffic.
Why Have Analysts Raised their Revenue Estimates for Papa John’s?
In 1Q16, PZZA’s domestic company-owned restaurants generated nearly 48% of Papa John’s revenue, while domestic commissaries and others generated 39.4%.
Domino’s Adds 51 New Stores In 4Q14
Domino’s added more units internationally last quarter. The company added a total of 662 units in the last 12 months.
What Will Drive Dunkin’ Brands’ 2Q17 Earnings?
In 2Q17, analysts expect Dunkin’ Brands (DNKN) to post EPS (earnings per share) of $0.62, which represents a rise of 8.8% from its EPS of $0.57 in 2Q16.
Starbucks Analysts: Their Ratings and Their Targets
Looking at analysts’ ratings for Starbucks, about 79% of analysts have “buy” recommendations for Starbucks, 21% have “hold” recommendations, and none has “sell” recommendations.
Valuation Multiples of Key Restaurant Players
Where are some of the major restaurant companies such as Starbucks, Chipotle, Panera, and Yum! Brands trading from a valuation standpoint? Over the past month, US markets have experienced high volatility.
Yum! Brands’ Management Initiatives and Outlook for 2015
Management stated that it expects the second quarter EPS to lag by 20% YoY. It expects full-year EPS growth of 10% in 2015.
Where Will Yum! Brands Trade in the Next Few Quarters?
Yum! Brands has a forward PE ratio of 25x. This indicates that the stock is valued fairly. It’s a stable company with a long history of EPS growth.
Should Investors Worry about Panera’s High Valuation?
In this part, we’ll look at how the company’s valuation PE (price-to-earnings multiple) affects Panera’s stock price.
Why Analysts Are Recommending “Buy” for Starbucks
Target price On January 13, 2017, Starbucks (SBUX) was trading at $57.85. The company’s share price may already have been factored into the estimates we’ve discussed in this series. In this article, we’ll look at analysts’ recommendations and estimated target prices for the stock over the next 12 months. Despite Starbucks posting strong 4Q16 earnings […]
Yum! Brands’ 4Q15 Same-Store Sales Growth Is 2% in China
Following its dismal performance in 3Q15, Yum! decided to release its same-store sales growth performance for China on a monthly basis.
When Will Yum! Complete the Separation of Its China Division?
On October 20, Yum! announced that it will separate its China division from the rest of its business. It’s expected to complete this by the end of 2016.
Will Success Continue for Jack in the Box?
Same-store sales at Jack in the Box’s company-operated restaurants are expected to grow 4%–6% in 3Q15 and 4.5%–5.5% for the year. Qdoba’s sales are expected to increase 6%–8%.
Starbucks Beats 1Q16 Expectations, Still Down Year-to-Date
Starbucks (SBUX) reported earnings per share of $0.46 for 1Q16, which exceeded Wall Street’s consensus estimates as well as management’s guidance of $0.45 per share.
Why Are Pork Prices Stabilizing?
Pork prices have dropped significantly in 2015 from the high of $1.38 per pound in June 2014 to the low of $0.65 per pound in March 2015.
Analysts Revised the Price Target after McDonald’s Earnings
Wall Street analysts set a price target of $125.1 for the next 12 months with a return potential of 5% from the closing price of $119.2 on January 25.
How Does Shake Shack Compare to Its Peers?
Shake Shack (SHAK) has an enterprise-value-to-revenue multiple of 13.9x, compared to the peer average of 3.5x.
Why Investors Weren’t Impressed by Starbucks’s Fiscal 2Q17
Starbucks (SBUX) posted its fiscal 2Q17 earnings after the market closed on April 27, 2017. Its EPS was $0.45 on revenues of $5.3 billion.
What to Expect from Starbucks’s Revenue in Next 4 Quarters
In the next four quarters, analysts are expecting Starbucks (SBUX) to post revenue of $23.8 billion, which represents an increase of 8.4% from $22.0 billion in the corresponding quarters of the previous year.
Bloomin’ Brands loses to its peers in year-to-date returns
As of September 20, 2014, year-to-date (or YTD) returns for Bloomin’ Brands (BLMN) was -30.7%.
Must Know: Analysts’ Price Target for Chipotle Mexican Grill
About 47% of analysts have “buy” recommendations on Chipotle, 50% of analysts have “hold” recommendations, and 3% have “sell” recommendations on the company. Overall, the stock has a “buy” rating.
Why Yum! Brands’ division in China is important
Yum! Brands’ (YUM) division in China includes its business in mainland China. It’s the combined revenues from all the brands—KFC, Pizza Hut, East Dawning, and the Little Sheep.
Is Starbucks’s Enterprise Multiple Trading High?
Starbucks’s current EV (enterprise value) to EBITDA multiple stands at 17x, which is close to the company’s historical high point of 17.6x and similar to its PE.
Starbucks Year-To-Date Returns Soar to 7.5%
The Starbucks year-to-date return was 7.5% compared to an average return of 4.9% among its rivals.
Must-know: Dunkin’s major costs of operations
Dunkin’ Brands Group (DNKN) has three major costs of operations. The costs of operations include general and administrative expenses, cost of products sold, and occupancy expense. Dunkin’s general and administrative expenses accounted for $56 million in the second quarter. This was 30% as a percentage of sales—compared to $62 million, or 34%, as a percentage of sales.
Starbucks’ strategy: Aggressive unit growth
Unit growth is a key driver that Starbucks is aggressively pursuing to grow the company’s sales. In the last 12 months, Starbucks has added 1,599 net new restaurants, or 8% growth in units.
Must-know: McDonald’s pricing and marketing initiatives in 3Q14
During the third quarter, McDonald’s launched its “Our food. Your questions” campaign. It enables communication between McDonald’s and its customers.
Why Tim Hortons introduced a mobile app and loyalty cards
Along with introducing new products like those we discussed in the previous part of this series, Tim Hortons (THI) is also testing different revenue channels and payment methods.
Is Shake Shack’s Valuation Still High?
Shake Shack is trading at 3.3 times the average peer valuation, which may mean that the company is overvalued.
Why Ready-to-Drink Coffee Is Gaining Popularity with US Consumers
Coffee lovers in the United States are boosting ready-to-drink coffee volumes.
Why high valuation and coffee prices drove Starbucks down ~13%
As store count grew over the past few years, Starbucks’ forward P/E valuation metric also expanded. What used to be just 17x gradually grew to roughly 27x, a 58% based solely on expansion in the valuations.
How technology helps drive restaurant sales
Increasingly, restaurants are using technology to increase customer traffic and drive same-store sales.
Chipotle’s 1Q15 Earnings Per Share Up 47%
Chipotle reported its 1Q15 EPS of $3.88, which increased an impressive 47%, compared with an EPS of $2.64 in the corresponding quarter in 2014.
Domino’s Stock Jumps 21% Since Last Earnings Release
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.
Why McDonald’s took a big hit in China
China is part of the APMEA region. Same-store sales were down 22.7%. Approximately 5,000 restaurants were affected when McDonald’s suspended its meat supplier.
What’s Behind the Decline in Starbucks Stock Price
After posting its fiscal 2Q17 earnings on April 27, 2017, Starbucks (SBUX) stock rose 5.3% to reach $64.57 on June 2, 2017. The aggressive expansion plans in the CAP (China and Asia-Pacific) region and its implementation of technological advancements led Starbucks stock price to rise. However, since then, the stock has seen downward momentum.
Why McDonald’s same-store sales declined
McDonald’s (MCD) revenues declined 4.5% YoY. Revenues in the restaurant industry are mainly driven by same-store sales and unit growth. The global same-stores sales were down to -3.3% YoY.
2Q15 Earnings Preview: Starbucks Up 18% since Last Quarter
On April 20, investment firm Sanford Bernstein reiterated its “outperform” rating for Starbucks (SBUX) with a price target of $56.
Restaurant Operators’ Capital Expenditure Outlook Increased
As of December 2014, the six-month outlook for capital expenditure plans was 102.4. It has been above 100 levels for the past 12 months.
Can Starbucks Deliver Double-Digit EPS Growth in Q1?
Starbucks will report its first-quarter earnings after the market closes on Tuesday. Analysts expect the company to report double-digit EPS growth.
Will Dunkin’ Brands’ 2Q17 Earnings Boost Its Stock Price?
Dunkin’ Brands, the owner of the Dunkin’ Donuts and Baskin-Robbins brands, is scheduled to announce its 2Q17 earnings before the market opens on July 27, 2017.
Downward trend: McDonald’s November Same-Store Sales
McDonald’s November same-store sales indicate a continued slide in all segments. Tensions between Russia and Ukraine are partially to blame.
Starbucks’ Shares Rise on Earnings
Starbucks (SBUX) reported its earnings on April 23 after the market closed. Shares started trading at $48.55. The shares were up slightly from the day before.
Must-know: Why did Amazon launch a mobile credit card reader?
For example, Amazon (AMZN) recently launched a credit card reader. Merchants can use it to conduct payments through a smartphone or tablet.
Will Starbucks’s Fiscal 3Q17 Earnings Boost Its Stock Price?
Starbucks (SBUX) is scheduled to announce its fiscal 3Q17 earnings after the market closes on July 27, 2017. Starbucks’ fiscal 3Q17 extends from April 3, 2017.
Can Corporate Profitability Alone Sustain US Stock Market Rally?
The S&P 500 Index (SPY) is up more than 60% over the last five years, providing good evidence of the US stock market rally. More than $7.8 trillion worth of funds is benchmarked to the index.
Must-Know: What Is PEG Ratio and How Is It Used?
Investors use a bunch of metrics to determine if a stock is attractive. One such metric is the PEG or the price-to-earnings-to-growth ratio.
Why Dunkin’ Brands is a unique player in a maturing industry
Dunkin’ Donuts’ main competitor on the coffee sales front is Starbucks, which sells coffee from its company-owned fleet of retail locations.
PepsiCo Partners with Starbucks to Seek Growth in Latin America
In 2016, PepsiCo and Starbucks will distribute Starbucks’s ready-to-drink, or RTD, coffee and energy beverages in select Latin American markets.
Cocoa Prices Fall on Rumored Supply Rejuvenation in Ghana
The cocoa futures contract on the Intercontinental Exchange, or ICE, for March delivery fell 4.2%. It settled at $2,810 per metric ton on January 20.
Starbucks’ Same-Store Sales Growth Is Declining
Same-store sales indicate the sales at the existing location over a period of time—usually one year. Same-store sales are driven by traffic and ticket.
Will Starbucks’ Growing Valuation Multiple Start to Fall?
Starbucks’ (SBUX) PE valuation multiple has been growing since October 2014, when the company hit a low point of 23x.
Must-Know: McDonald’s Has Got Tough Competition
McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.
Starbucks revenues: Why customers are willing to pay a premium
Starbucks’ revenue mix is weighted in favor of beverages. This should come as no shock, considering the firm’s roots trace back to a single coffee shop at Pike’s Place Market in Seattle.
Starbucks Drove More Traffic to Its Stores in 3Q15
Why traffic increased in 3Q15 Starbucks has a strong loyalty program known as My Starbucks Rewards, or MSR, with 10.4 million active members. Membership increased 28% year-over-year in 3Q15. This program is built into Starbucks’s (SBUX) existing technology ecosystem, which is scalable. As the company expands its breadth of services and innovates ways to reward […]
How Much Upside Is Left in Starbucks’s Stock Price?
Starbucks’s (SBUX) share price has been soaring since it announced its fiscal 4Q16 results on November 3, 2016. Let’s explore why.
Could McDonald’s Valuation Multiple Rise from 3Q15?
Following its 3Q15 earnings, McDonald’s shares increased 8% on positive improvement expectations. The valuation multiple also rose 7.3% as a result of a share price increase.
McDonald’s Shares Rise 3% on 1Q15 Earnings Release
According to NASDAQ, McDonald’s shares closed at $97.84—up 3% from the previous day’s close. Share volume was also above-average.
Key Events for Consumer Stocks: February 5–9, 2018
On February 2, SocGen upgraded Mondelez International (MDLZ) to “buy” from “hold” and raised the target price to $55 from $45.
The Idea behind Economic Moats
“How Moats Translate into Sustainable Competitive Advantages” is a five-part moat investing education series that explores the primary sources of economic moats. she
What’s So Special About Specialty Tea?
According to the Tea Association of the USA, the specialty tea segment wholesale value increased to an estimated $1.9 billion in 2014, up 9.8% from 2013.
Why Yum! Brands’ restaurants have grown globally
Yum! Brands plans to open new locations in certain countries. Growing restaurant units is the first step to capturing customers in a market.
Will Coffee Peers Step Up Their Game with Jacobs Douwe Egberts?
With the emergence of Jacobs Douwe Egberts, Keurig and other coffee producers will focus more on expanding their product portfolios. They’ll also focus on an international presence to capture the growing global demand for coffee.
Dunkin’ Brands’ Strategic Focus and Supply Chain
A strategic focus and balanced strategy for restaurant include a present in grocery chains to help diversify risks associated with a bad economic cycle.
Apple Pay Should Benefit Immensely from Starbucks Partnership
Some Starbucks stores will start accepting Apple Pay by the end of this year. Apple Pay’s complete rollout at 7,500 Starbucks stores will happen by the end of next year.
How to Get a Free Starbucks Collectible Holiday Cup
Everything You Need to Know about the BITE ETF
To reap the rewards at both ends of the spectrum, a fund like the Restaurant ETF (BITE) could come in handy!
Chipotle Opens 100th Chipotlane, Plans to Hire 10,000 More Employees
On Wednesday, Chipotle stock rose to a high of $1,135.66 before closing at 1,133.65. The stock rose 2.8% from the previous day’s closing price.
Will Chipotle’s Q2 Earnings Boost Its Stock Price?
So far this year, Chipotle (NYSE:CMG) has outperformed its peers and the broader equity markets. The company has delivered strong returns of 34.9%.
Why Shares of Square Jumped in After-Hours Trading on August 4
Shares of payment technology company Square (SQ) jumped in after-hours trading on August 4 as the company reported better-than-expected 2Q16 results.
The Starbucks Market Mystique
Starbucks stock began its ascent in late September 2014. Prices increased even more after the first-quarter 2015 earnings were released on January 22, 2015.
Dunkin’ Donuts’ 3Q14 same-store sales dip in Korean market
The Korean market, which represents 45% of Dunkin’s International segment’s sales, dragged down the same-store sales. The company also closed stores in Korea and the Philippines during the quarter.
Why McDonald’s same-store sales declined across all segments
During the earnings call, management stated that McDonald’s “hasn’t changed at the same rate as its customers’ eating out expectations” in its priority markets.
Shake Shack’s Long Lines Meant Profits in 2Q15
The star of Shake Shack’s (SHAK) second-quarter performance was same-store sales growth, which grew 12.9% compared to 4.5% a year ago.
Can McDonald’s Same-Store Sales Turnaround Continue in 4Q15?
By focusing on product innovations, a value menu, and time-limited offerings, McDonald’s increased same-store sales in 3Q15 globally. Analysts expect this trend to continue in 4Q15 as well.
Why Analysts Expect Dunkin’ Brands’ Earnings Margin to Expand
For 2Q17, analysts expect Dunkin’ Brands (DNKN) to post EBIT (earnings before interest and tax) of $117.4 million, which represents an EBIT margin of 53.1%.
Wendy’s earnings per share down 9% in 4Q14
Wendy’s earnings per share were down 9% compared to its EPS of $0.11 in the fourth quarter of 2013.
Why Starbucks’s Fiscal 2Q17 Revenue Was Lower Than the Estimate
In fiscal 2Q17, Starbucks posted revenue of $5.3 billion, which was lower than analysts’ estimate of $5.4 billion.
Brinker International Launches Self-Serve ‘Ziosk’
“Ziosk” is a table-top device that customers can use to order food, redeem coupons, entertain themselves, and pay their checks after their meal.
How 2Q15 Earnings Affected Dunkin’ Brands’ Valuation
Dunkin’ Brands’ valuation dropped from 26.8x before 2Q15 to 25.6x. Although analysts revised their next 12-month EPS estimate down to $2.04 from 2.05 per share, stock prices fell more.
Shake Shack’s Revenue Growth Expected to Decelerate in 2016
Shake Shack is anticipating revenue in the range of $237 million–$242 million in 2016, compared to Wall Street analysts’ estimate of $241.3 million.
Why Analysts Suggest a ‘Hold’ for Domino’s Pizza
As of April 28, 2016, Domino’s Pizza (DPZ) was trading at $120.5. The share price might have already priced in the estimates that we discussed earlier in this series.
Shake Shack: Why You Should Consider the Stock’s Valuation
Previously in this series, we saw what drives Shake Shack’s (SHAK) revenue. In this article, we’ll see how the revenue growth affects Shake Shack’s share price.
Chipotle’s bottom line grows 52% in 4Q14
Net income for Chipotle Mexican Grill (CMG) grew by 52% to $121.1 million year-over-year (or YoY) from $79 million in the corresponding quarter a year ago.
Is Starbucks a ‘Buy’ After Wells Fargo’s Overweight Rating?
On Monday, Wells Fargo initiated its coverage on Starbucks with an “overweight” rating. Wells Fargo also assigned a 12-month target price of $92.
Is McDonald’s a ‘Buy’ Ahead of Its Q2 Earnings?
McDonald’s is set to report its second-quarter earnings before the market opens on July 28. Let’s look at analysts’ expectations for the quarter.
Beyond Meat Continues to Expand—Should You Buy?
Just 15 days since introducing its products in China’s supermarkets, Beyond Meat launched its products in Brazil in association with St. Marche yesterday.
Chipotle Has Risen 160% from Its March Lows, Looking Ahead
Chipotle (NYSE:CMG) has bounced back strongly from its March lows by rising 168.8%. The stock hit a new 52-week high of $1145.63 on July 7.
Beyond Meat Enters Chinese Grocery Stores through Alibaba
Beyond Meat (NASDAQ:BYND) wants to expand in the Chinese market. The company will offer Beyond Burgers in Alibaba’s (NYSE:BABA) Freshippo stores.
McDonald’s or Starbucks, Which Is a Better Buy?
So far this year, McDonald’s (NYSE:MCD) and Starbucks (NASDAQ:SBUX) have lost 9.0% and 18.6% of their respective stock values.