Starbucks reported an acceptable earnings picture for Q4 to Wall Street Thursday: strong US sales, weaker margins due to cost inflation and their partner and equipment upgrades; negative but sequentially better results in China due to COVID restrictions, and strong results in other international markets. Of the results that matter most to us, US comps…
Read More »The Golden Arches showed its continuing global strength last week with the release of almost perfect Q3 earnings. Global same-store sales were up 9.5%, with US SSS up 6.1%. The average ticket was largely responsible for driving much of the gain, but customer traffic was positive as well. In the U.S., the power of targeted…
Read More »Starbucks interim CEO Howard Schultz presided over the company Q2 earnings call earlier this week at which he announced plans for a $1 Billion investment in revised 2022 OPEX/CAPEX for such items as additional employee investments, more training, replacing equipment, building new stores and planning new sales platforms. This is the largest mid-year flex-up in…
Read More »Starbucks reported positive same store sales of plus 9% in the company’s Q2 earnings report on Tuesday of this week. The favorable result was comprised of positive ticket of 22% along with negative transactions of 10%. Against a backdrop of increased 2021 guidance, the company’s tone was very self-congratulatory notwithstanding that it was still comparing…
Read More »McDonald’s reported Quarter 3 sales and profits above estimates earlier this week. US same store sales were plus 4.6%, with a strong September fueled by the Travis Scott meal and the spicy McNuggets LTO. What got the most attention was a recap of its “Accelerating the Arches” strategy upcoming, which was advertised as the next…
Read More »Dunkin’ Brands reported very solid Q3 Earnings yesterday. Its revenue beat estimates by $17M and GAAP EPS were $.13 above estimates. Dunkin’ did not announce any news of a merger with Roark/Inspire Brands, of which talks had been confirmed on Sunday. The Brand was very clear that it would not speak of the matter until…
Read More »Both McDonald’s and Starbucks hosted earnings calls as well this week and neither event was particularly pretty. In Q2, McDonald’s posted its lowest overall profit in 14 years, and US same-store stores declined 8.7% for the quarter as a whole. Preliminary July same-store sales trends were just barely in positive territory with breakfast daypart sales…
Read More »In the Dunkin’ Q1 earnings call held yesterday, company executives described the positive Dunkin US and Baskin sales momentum the brand had experienced leading into mid-March, only to be knocked down by the Covid 19 impact. By early April, Dunkin US same store sales had fallen to minus 35% but has since improved to almost…
Read More »McDonald’s also presented Q1 earnings yesterday with a similar pattern – positive January and February US sales followed by a dramatic fall-off beginning in mid-March. The US same store sales bottomed out at -35% and improved to -25% in mid-April. Virtually all US units are open, and the drive thru sales mix rose from 67%…
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