Wendy's/Arby's Group (WEN) was wallowing in red ink Friday morning, after the fast-food firm confessed to a third-quarter loss and warned that its full-year earnings would arrive at the low end of its previously forecast range. Even more troubling, the restaurateur said it's not yet prepared to offer financial guidance for 2011.

For the recently concluded quarter, Wendy's swallowed a net loss of $900,000 -- which translates to a negligible per-share deficit -- down from its year-ago profit of $14.69 million, or 3 cents per share. Revenue for the period slipped 4.7% to $861.2 million. Analysts surveyed by Thomson Reuters were anticipating a profit of 4 cents per share on $882.6 million in revenue.

Continue reading Wendy's/Arby's Group Sinks After Q3 Loss

Wendy's/Arby's Group Sinks After Q3 Loss originally appeared on BloggingStocks on Fri, 12 Nov 2010 12:30:00 EST. Please see our terms for use of feeds.

Wendy's/Arby's Group (WEN) issued its second-quarter earnings on Thursday. The fast-food entity beat expectations. But, as far as I'm concerned, it wasn't any big deal. In fact, the market sort of agreed with me. By the end of the trading session, shares were off by a mere penny, settling out at a price of $4.14. Volume wasn't that interesting, either.

According to Briefing.com, net profit of 6 cents per share went beyond the estimate by a penny. However, same-store sales at both the Wendy's and Arby's declined. System-wide comps in North America contracted 1.7% for the former and 7.4% for the latter.

Continue reading Wendy's/Arby's Group Reports Lousy Earnings

Wendy's/Arby's Group Reports Lousy Earnings originally appeared on BloggingStocks on Fri, 13 Aug 2010 09:00:00 EST. Please see our terms for use of feeds.

McDonald's Corporation (MCD) was down roughly 2% as I began composing this piece during the afternoon session. I hope investors weren't paying attention to the bears who were in control of the fast-food giant's shares. To me, the stock seems to be in good shape, and in the kind of trading climate we're in, it could be a useful instrument for the cautious player.

I'm seeing a quote of around $70 go by on my screen. Not bad in the least, considering that the 52-week high is $71.84. It shows the kind of resilience the stock possesses. Indeed, considering how many equities have pulled back from their 52-week highs, you've got to enjoy this element of the story.

Continue reading McDonald's Receives Bearish Reaction to Latest Earnings

McDonald's Receives Bearish Reaction to Latest Earnings originally appeared on BloggingStocks on Fri, 23 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Yum! Brands Didn't Excite Wall Street with Q2 Numbers

Yum! Brands Didn't Excite Wall Street with Q2 Numbers originally appeared on BloggingStocks on Wed, 14 Jul 2010 09:00:00 EST. Please see our terms for use of feeds.

I'm not a fan of Wendy's/Arby's Group (WEN). It just doesn't seem as safe as stocks like Burger King (BKC), McDonald's (MCD), or Yum! Brands (YUM). Of course, I'm certain I did nothing more than state the obvious.

As a low-priced equity, Wendy's/Arby's Group always possesses the risk of volatility. Today, the shares are off by over 3% in afternoon trading; at the time of this writing, I saw a share price of $4.93. Hey, it's better than the day low of $4.86. The company had reported earnings results for the first quarter Thursday morning. Do the numbers make the company look more or less attractive?

Continue reading Wendy's/Arby's Group: Avoid After Q1?

Wendy's/Arby's Group: Avoid After Q1? originally appeared on BloggingStocks on Thu, 13 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Yum! Brands (YUM), owner of KFC and Taco Bell, operates in the same industry as McDonald's (MCD), Burger King (BKC), and Wendy's/Arby's Group (WEN). All of these stocks are either at or near their respective 52-week highs. How does Yum! Brands look after its first-quarter report?

You've got to take notice of this stock. The one-year chart depicts an equity that consolidated for a while, only to finally break out and head to the upside. And here's some more good news for both traders and investors alike: Wednesday, the shares closed the regular session 1.8% higher from where they started. Then, during the after-hours session, following distribution of the earnings release, the bulls, deciding they wanted to remain in charge, gave the company another boost.

Continue reading Add Yum! Brands to Your Portfolio?

Add Yum! Brands to Your Portfolio? originally appeared on BloggingStocks on Thu, 15 Apr 2010 09:00:00 EST. Please see our terms for use of feeds.

Wendy's/Arby's Group (WEN) is a stock that really isn't for most investors (in my opinion). It's not what I would call a quality name. If you want to play the fast-food sector, you'd be better off with McDonald's (MCD) or Yum! Brands (YUM).

Burger King (BKC), although not my favorite member of the list, might also be a more attractive selection than Wendy's/Arby's Group. I don't mean to be down on the fast-food entity, but it just isn't in the same league as those other investment ideas. Plus, a look at the fourth-quarter report shows that management has quite a bit of work to do.

Continue reading Wendy's/Arby's Group: Q4 Comps Don't Inspire

Wendy's/Arby's Group: Q4 Comps Don't Inspire originally appeared on BloggingStocks on Fri, 05 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.

Burger King (BKC), which competes for the attention of fast-food junkies along with McDonald's (MCD), Wendy's/Arby's Group (WEN), and Yum! Brands (YUM), didn't do too badly when it came to bottom-line growth in the second quarter. Same-store sales, on the other hand, could have used a little assistance.

Earnings per share calculated out to 37 cents. That was good for a 12% increase. Great to see double-digit appreciation. However, domestic comps went down 3.3%, while total comps were off by 2%. The same-store sales metric is a very important indicator of the overall health of a business that has many locations.

Continue reading Burger King's Second Quarter: Comps Could Be Better

Burger King's Second Quarter: Comps Could Be Better originally appeared on BloggingStocks on Fri, 05 Feb 2010 09:30:00 EST. Please see our terms for use of feeds.

Sales went down 1%, and earnings per share on an adjusted basis increased 7% to 50 cents. Earnings.com says 48 cents per share was the desired figure. Same-store sales in the United States decreased 8%.

Continue reading Yum! Brands Not Doing Well After Q4 Release

Yum! Brands Not Doing Well After Q4 Release originally appeared on BloggingStocks on Thu, 04 Feb 2010 16:20:00 EST. Please see our terms for use of feeds.

Yum! Brands (NYSE: YUM), which competes with McDonald's (NYSE: MCD), Burger King (NYSE: BKC), and Wendy's/Arby's Group (NYSE: WEN) for the right to feed consumers on the go around the world, issued a Q3 report after the bell on Tuesday that was decent in many respects. Earnings per share on an adjusted basis increased over 20% to 70 cents. This performance absolutely embarrassed the analysts, who were looking for a mere 58 cents per share according to our earnings preview.

So, that was one of the decent parts. Actually, I'd say it was a little more than decent. But, unfortunately, the top line didn't grow. Total revenues actually declined 2%.

Continue reading Yum! Brands beats estimates in Q3, but Pizza Hut is not so yummy

Yum! Brands beats estimates in Q3, but Pizza Hut is not so yummy originally appeared on BloggingStocks on Wed, 07 Oct 2009 08:30:00 EST. Please see our terms for use of feeds.

On the surface, I suppose the market is telling you that Yum! Brands would indeed make a good earnings trade. Not only is the stock up nicely this afternoon, but it isn't too far from a 52-week high.

Continue reading Buy Yum! Brands ahead of earnings?

Buy Yum! Brands ahead of earnings? originally appeared on BloggingStocks on Mon, 05 Oct 2009 15:00:00 EST. Please see our terms for use of feeds.

If you're trying to get your head around some stock strategies for the upcoming fall trading season, you might want to consider dividend yields. Volatility could increase since we've had such a run-up in many equities, so thinking about payouts is probably advisable.

I was looking around for some higher-yielding blue chips and became interested in McDonald's (NYSE: MCD). As of last Friday's closing price, McDonald's yields almost 3.6% on an annual basis. It pays out 50 cents per share per quarter according to its corporate website.

Continue reading McDonald's: Interesting yield?

McDonald's: Interesting yield? originally appeared on BloggingStocks on Tue, 08 Sep 2009 08:00:00 EST. Please see our terms for use of feeds.

Sonic said it earned an adjusted 24 cents per share. This article reported expectations as being $0.20 per share, so management beat the bottom line by a nice amount. We'll throw that result on the positive side of the line.

Continue reading Sonic beats Wall Street, but sales are sagging

Sonic beats Wall Street, but sales are sagging originally appeared on BloggingStocks on Wed, 24 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

Sonic (NASDAQ: SONC), the drive-in fast-food joint that competes with McDonald's (NYSE: MCD), Wendy's/Arby's Group (NYSE: WEN), Yum! Brands (NYSE: YUM), and Burger King (NYSE: BKC), reported second-quarter earnings after the bell on Monday. You know that video-game character Sonic the Hedgehog? Know how he's fast? Well, Sonic the burger server is unlike Sonic the software character right now when it comes to growing its business.

Continue reading Sonic's food may be served fast, but its earnings growth is anything but

Sonic's food may be served fast, but its earnings growth is anything but originally appeared on BloggingStocks on Tue, 24 Mar 2009 15:40:00 EST. Please see our terms for use of feeds.

Burger King (NYSE: BKC), a famous fast-food joint that competes with McDonald's (NYSE: MCD), Yum! Brands (NYSE: YUM), and Wendy's/Arby's Group (NYSE: WEN), reported earnings for the fiscal second quarter on Thursday. Net sales decreased 3%, and net income dipped 8% to $0.33 per diluted share. The call was for $0.37 per share.

It's good to be the King, but it's not good to miss your earnings forecast. Yes, we shouldn't always pay attention to the analysts and their game, and it's certainly difficult these days to make forecasts anyway, but it's always nice to see a company at least hit the ballpark in terms of consensus.

The press release cited concerns with currency translations, so that's something for shareholders to keep in mind. But the release also cited something that I think is one of the best elements of the Burger King story: its marketing campaigns. Management was happy to congratulate itself on being highlighted by trade journal Ad Week. I know, it's just corporate bragging in an earnings document, who needs that, right? While that may be true, I do honestly believe that Burger King's TV spots have definitely built a loyal following among the valuable youthful demos, and that the campaigns, which have included that creepy royal mascot, are indeed responsible for growth. And those Whopper Virgins commercials were pretty funny, too.

Continue reading Burger King misses in Q2 -- is stock a buy?

Burger King misses in Q2 -- is stock a buy? originally appeared on BloggingStocks on Fri, 06 Feb 2009 15:00:00 EST. Please see our terms for use of feeds.

Burger King Holdings, Inc. (NYSE: BKC), which competes with Yum! Brands (NYSE: YUM), Wendy's/Arby's Group (NYSE: WEN), and, of course, McDonald's Corporation (NYSE: MCD), reported earnings today for the first fiscal quarter. The statistics show that, well, it kind of is good to be the king. I won't say these are the biggest growth numbers I've ever seen, but I thought they showed that the fast-food entity is doing well serving its core customers.

Revenues jumped 12%. On a global basis, comps jumped 3.6%, which management points out is the 19th time in a row that global comps were in positive-growth territory. I know, that's the kind of managerial cheerleading that an investor must be careful about, but I think it's a cool fact in this case. Domestically, comps advanced 3%, and, well, it's the 18th time in a row for that metric, if you care. Adjusted net income came in at $0.38 per share, a 9% increase. This is where the creepy Burger King mascot sheds a tear, because that was one penny below the expectations of the analyst wizards who populate the kingdom of Wall Street (according to Melly Alazraki's Before the Bell article from earlier today).

Although Burger King didn't please the analyst community, I thought this was a good quarter. The release said that the company purchased some stock and paid a dividend, all of which was covered by cash generated from operations. Management seems to be amply aware of the stresses that the economy is going to put on its patrons and is studying pricing strategies. That's the problem for every purveyor of foodstuffs. People aren't so keen about paying up for stuff these days, so how do you get them to do it? Costs and currency fluctuations are affecting many companies, and they won't have an easy go of it as the recession continues its march of pain (even with the recent upward moves in the stock market, I'm not that bullish just yet). So, even though I like Burger King's Q1, and even though I think it's a great marketer of its menu items (the youth really dig that creepy Burger King character), I'll concede that the stock could be volatile in the coming months. Long-term, though, it should be a good investment.

Disclosure: I don't own any company mentioned; positions can change at any time.

Burger King may serve unhealthy food, but it had a healthy Q1 originally appeared on BloggingStocks on Fri, 31 Oct 2008 15:56:00 EST. Please see our terms for use of feeds.

McDonald's (NYSE: MCD), which competes with Burger King (NYSE: BKC), Wendy's/Arby's Group (NYSE: WEN), and Yum! Brands (NYSE: YUM), will be reporting earnings for the third quarter tomorrow. I have a feeling many shareholders will be resting easy this week. I don't think McDonald's will have a big earnings miss.

According to Earnings.com, Mickey D's should earn 97 cents per share. If management can meet those expectations, that's earnings growth of about 17%. That's tasty in this market. Here's the kicker: McDonald's beat earnings estimates the last two quarters by wide margins. Will the company do the same thing this week? I think there's a decent chance it will. Even though there's a bear market going on, gas prices have been dropping, and you figure that has to be good for the drive-thru. Plus, there's that affordable-menu option that has driven a lot of brand equity over the last several years for the fast-food giant. I'm sure many patrons appreciate that in a tough period.

Besides earnings, investors will focus on same-store sales. That metric is one of the best indicators of a company that is made up of many locations. It's really no different than retailing. I'll be interested to see how the domestic market is faring compared to the international markets. Another thing I'll be interested in seeing is how inflation is affecting Ronald and his empire. We all know that Ronnie is a clown who likes to bestow happiness among all his customers, but reality likes to ruin parades every now and then. In this case, McDonald's has to keep a constant eye on the issue of pricing.

Continue reading Earnings preview: McDonald's to serve up a happy meal of data?

Earnings preview: McDonald's to serve up a happy meal of data? originally appeared on BloggingStocks on Tue, 21 Oct 2008 09:35:00 EST. Please see our terms for use of feeds.

Yum! Brands (NYSE: YUM) reported earnings for the third quarter after the bell on Tuesday. Revenue went up 11% to $2.8 billion. Earnings per share rose 16% to $0.58. Global comps increased 3%.

You know, those numbers are not bad at all. As we await earnings reports, I'm sure that you, like me, are nervous. I mean, we're in the middle of a global economic slowdown fueled by a financial-system collapse, so the data this quarter is going to be particularly telling. The fact that Yum! has double-digit growth to its credit is pretty cool to see.

No, that doesn't mean I'm a bull on the markets all of a sudden, but it does show that people are still stopping by Pizza Huts and KFCs. Guess people won't give those guilty pleasures up during the monetary apocalypse, huh? And let's look at Yum!'s cash flow. While net cash from operating activities year-to-date was pretty much flat at $1.1 billion, it was more than enough to cover the capital spending and dividend obligation. As you can imagine, management highlighted the nice cash-flow generation of Yum!'s business. During a market crisis, it's the thing to do.

According to this source, Yum! beat by four pennies. Shareholders will be pleased by that, and perhaps the shareholders of Burger King (NYSE: BKC), Wendy's/Arby's Group (NYSE: WEN), and McDonald's (NYSE: MCD) can take Yum!'s performance as a good omen for their companies. I can't say that Yum! Brands is going to rocket from here based on the earnings news. But I can say that long-term investors with a lot of patience should have a winner on their hands based on the brand equity of the company and its cash-flow-generating abilities.

Disclosure: I don't own any company mentioned; positions can change at any time.

Yum! Brands beats analysts, delivers solid cash flow originally appeared on BloggingStocks on Wed, 08 Oct 2008 09:45:00 EST. Please see our terms for use of feeds.