Dj Ibd: Bj's Restaurants Sees Ibd Rs Rating Climb To 77

Arcos Dorados Holdings Inc. ARCO reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

ARCO’s Q3 Earnings & Revenue Discussion

During the third quarter, the company reported adjusted earnings per share (EPS) of 17 cents, beating the Zacks Consensus Estimate of 16 cents. The bottom line fell 39.3% year over year from 28 cents reported in the year-ago quarter.

During the quarter, the company reported revenues of $1.13 billion, beating the consensus mark of $1.09 billion. The top line increased 0.8% on a year-over-year basis.

Arcos Dorados Holdings Inc. Price, Consensus and EPS Surprise

Arcos Dorados Holdings Inc. price-consensus-eps-surprise-chart | Arcos Dorados Holdings Inc. Quote

Digital channel sales during the quarter rose 16% year over year and represented 58% of systemwide sales. The growth was driven by strong performances in the Mobile App and Delivery services, along with continued expansion of the Loyalty Program.

During the third quarter, comparable restaurant sales increased 32.1% year over year, courtesy of strong guest volume growth.

Operating Highlights

During the third quarter, operating income amounted to $79.8 million compared with $91.1 million reported in the prior-year quarter.

During the quarter, food and paper costs came in at $381.2 million compared with $376 million reported in the prior-year quarter. General and administrative expenses in the first quarter came in at $68.1 million compared with $67.8 million in the prior-year period.

Adjusted EBITDA in the third quarter came in at $125 million compared with $129.1 million reported in the prior-year quarter.

ARCO’s Balance Sheet

Total cash and cash equivalents as of Sept. 30, 2024, totaled $115.9 million compared with $196.7 million on Dec. 31, 2023.

Net debt (total financial debt minus total cash and cash equivalents) as of Sept. 30, 2024, was $598.3 million, up from $481.3 million at 2023 end.

Store Developments

During the third quarter, the company opened 19 Experience of the Future (EOTF) restaurants, all free-standing units. The Brazil division opened 11 EOTF restaurants.

ARCO’s Zacks Rank

Arcos Dorados currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

Chipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.

CMG reported adjusted EPS of 27 cents, outpacing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.

Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.

SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.

BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.

The company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Zacks Investment Research

Sweetgreen, Inc. SG reported third-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

SG’s Q3 Earnings & Revenue Discussion

In the fiscal third quarter, Sweetgreen recorded an adjusted loss per share of 18 cents, wider than the Zacks Consensus Estimate of a loss of 16 cents. The company reported an adjusted loss per share of 22 cents in the prior-year quarter.

Quarterly revenues of $173.4 million missed the consensus mark of $174 million. However, the top line increased 13% year over year. The upside was driven by new restaurant openings and an increase in Same-Store Sales (6% year over year). Same-Store sales growth comprised a 4% boost from menu price adjustments and a 2% rise in traffic/mix.

Sweetgreen, Inc. Price, Consensus and EPS Surprise

Sweetgreen, Inc. price-consensus-eps-surprise-chart | Sweetgreen, Inc. Quote

Operating Results

The restaurant-level profit margin was 20% in the fiscal third quarter (compared with 19% reported in the prior-year quarter). The upside was driven by same-store sales growth of 6%, labor optimization and reduced occupancy rates across recently opened stores. However, this was partially offset by higher protein costs and staffing expenses.

During the fiscal third quarter, labor and related expenses increased 8.6% year over year to $47.5 million. Other operating costs during the quarter increased 13.5% year over year to $28.2 million.

General and administrative expenses during the quarter came in at $36.8 million, compared with $36 million reported in the prior year quarter. The rise was due to increased spending at the Sweetgreen Support Center to support the company's restaurant expansion.

Adjusted earnings before interest expenses, income taxes, depreciation and amortization (EBITDA) during the fiscal third quarter amounted to $6.8 million compared with $2.5 million reported in the prior-year quarter.

Other Financial Information

As of Sept. 29, 2024, Sweetgreen had cash and cash equivalents of $234.6 million compared with $257.2 million as of Dec. 31, 2023.

2024 Guidance

For fiscal 2024, the company expects total revenues to be in the range of $675-$680 million. The company anticipates same-store sales change to be between 6% and 7%. Restaurant-Level Profit Margin is projected to be in the range of 19.5-20%. The company expects adjusted EBITDA to be between $18 million and $20 million. For fiscal 2024, the company expects to open 24-26 new restaurants.

SG’s Zacks Rank

Sweetgreen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

Chipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.

CMG reported adjusted EPS of 27 cents, outpacing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.

Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.

SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.

BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.

The company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Zacks Investment Research

Red Robin Gourmet Burgers, Inc. RRGB posted mixed third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines declined year over year. Following the results, the company’s shares declined 10.1% during yesterday’s after-hours trading session.

Red Robin’s third-quarter fiscal 2024 results declined despite some positive developments in restaurant performance and customer satisfaction. The company’s CEO G.J. Hart emphasized that its “North Star Plan” has been gaining traction, with Red Robin’s comparable restaurant revenues exceeding industry averages and customer traffic rebounding in the latter part of the quarter.

However, the macroeconomic environment added significant pressure to Red Robin’s recovery, hampering the overall impact of these operational gains. While the brand has made strides in rebuilding its customer base and revamping RRGB’s loyalty program, broader economic challenges limited the extent of its financial improvement.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Delving Deeper Into RRGB’s Q3 Performance

In the fiscal third quarter, RRGB recorded an adjusted loss per share of $1.13, wider than the Zacks Consensus Estimate of a loss of 87 cents. The company reported an adjusted loss per share of 79 cents in the prior-year quarter.

Quarterly revenues of $274.6 million beat the consensus mark of $272 million. However, the top line declined 1.1% year over year. In the quarter under review, comparable restaurant revenues increased 0.6% year over year.

Red Robin Gourmet Burgers, Inc. Price, Consensus and EPS Surprise

Red Robin Gourmet Burgers, Inc. price-consensus-eps-surprise-chart | Red Robin Gourmet Burgers, Inc. Quote

RRGB’s Operating Results

The restaurant-level operating profit margin was 9% in the fiscal third quarter compared with 11.1% in the prior-year quarter. Our projection for the metric was 10.2%.

In the fiscal third quarter, restaurant labor costs increased 3.8% year over year to $107.7 million. The figure compares with our projection of $105.1 million.

Other operating costs was $49.7 million compared with $50.4 million reported in the prior-year quarter. Our prediction for the metric was $47.3 million.

Adjusted earnings before interest expenses, income taxes, depreciation and amortization (EBITDA) in the fiscal third quarter amounted to $2.1 million compared with $6.8 million in the prior-year quarter. Our estimate for the metric was $6.3 million.

Other Financial Information of RRGB

As of Oct. 6, 2024, RRGB had cash and cash equivalents of $22 million compared with $23.6 million as of Dec. 31, 2023. Long-term debt, as of Oct. 6, 2024, was $180.7 million compared with $182.6 million in the prior-year quarter. Inventories in the quarter were $27.5 million compared with $27.3 million in the previous quarter.

RRGB’s 2024 Guidance

For fiscal 2024, the company continues to expect total revenues to be approximately $1.25 billion. Restaurant-level operating profit is anticipated to be 10.5% down from the previous expectation of 11-11.5%. Capital expenditures are anticipated to be $25 million. In 2024, adjusted EBITDA is expected in the range of $35-$37.5 million, down from the previous expectation of $40-$45 million.

RRGB’s Zacks Rank

Red Robin currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

Chipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.

CMG reported adjusted EPS of 27 cents, surpassing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.

Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs, aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.

SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.

BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.

The company reported an adjusted loss per share of 13 cents. The Zacks Consensus Estimate for the metric was 3 cents per share-. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Zacks Investment Research

Restaurant Brands International, Inc. QSR reported third-quarter 2024 results with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

QSR’s Q3 Earnings & Revenue Discussion

QSR reported adjusted earnings per share (EPS) of 93 cents, missing the Zacks Consensus Estimate of 94 cents. Organically, the bottom line grew 4.6% year over year.

Quarterly net revenues of $2.29 billion missed the consensus mark of $2.3 billion by 0.5%. The top line increased 24.7% on a year-over-year basis. On an organic level, the upside was due to the net impact of non-Carrols-acquired BK restaurants and the acquisition of PLK Carrols restaurants. Additionally, organic revenue growth was driven by system-wide sales increases at International (INTL) and Tim Hortons (TH). However, it was partially offset by declines in system-wide sales at Burger King (BK), Popeyes Louisiana Kitchen (PLK) and Firehouse Subs (FHS).

Restaurant Brands International Inc. Price, Consensus and EPS Surprise

Restaurant Brands International Inc. price-consensus-eps-surprise-chart | Restaurant Brands International Inc. Quote

During the quarter, consolidated comparable sales (comps) increased 0.3% and net restaurants grew 3.8% year over year. Global system-wide sales rose 3.2% year over year.

Segmental Revenues

Restaurant Brands operates through five segments — TH, BK, PLK, FHS and INTL. As of now, RH’s results for the Carrols and PLK China are included in the BK and INTL segments, respectively.

TH business reported revenues of $1.04 billion, down 0.8% from the prior-year quarter’s levels. Organically, revenues were up 0.7% year over year. System-wide sales rose 2.8% year over year compared with the 8.1% growth reported in the prior-year quarter. Comps rose 2.3% year over year compared with a 7.6% rise in the year-ago period.

BK’s revenues amounted to $362 million, up 10.1% from the year-ago period (10.2% organically). System-wide sales fell 1.5% year over year against growth of 6.4% reported in the prior-year quarter. Comps slipped 0.7% year over year versus 6.6% growth in the year-earlier quarter. Net restaurant growth was down 1.5% year over year compared with a 2.4% decline reported in the prior-year quarter.

PLK generated revenues of $195 million, up 9.7% year over year (9.8% organically). System-wide sales fell 0.6% year over year against growth of 11.2% reported in the prior-year quarter. Comps fell 4% year over year versus the 5.6% growth reported in the prior-year quarter. Net restaurant growth was 4.1% year over year compared with 5.3% growth a year ago.

FHS’ revenues totaled $53 million, up 4.1% from the year-ago levels (4.2% organically). System-wide sales fell 1.3% against an improvement of 7% reported in the prior-year quarter. Net restaurant growth was 3.9% compared with 2.5% in the prior-year quarter. Comps fell 4.8% year over year against 3.6% growth reported in the prior-year quarter.

INTL segment revenues came in at $243 million, up 6.4% year over year (8.6% organically). System-wide sales growth was 8% year over year compared with the 15.6% growth reported in the prior-year quarter. Comps rose 1.8% year over year compared with the 7.7% growth reported in the prior-year quarter. Net restaurant growth was 7.6% year over year compared with a 9.5% increase a year ago.

Operating Performance

During the quarter, adjusted operating income rose 7.1% year over year to $652 million. Our projection for the metric was $636.6 million.

Adjusted EBITDA of $748 million was up 7.2% from $698 million reported in the prior-year quarter. Our estimate for the metric was $735.7 million.

Cash and Capital

Restaurant Brands ended the third quarter with a cash and cash equivalent balance of $1.2 billion compared with $1.31 billion as of Sept. 30, 2023. As of Sept. 30, 2024, long-term debt (net of current portion) was $13.6 billion compared with $12.9 billion as of Sept. 30, 2023.

Net cash provided by operating activities (for the nine months ended Sept. 30) was $1.02 billion compared with $920 million in the year-ago period. Free cash flow in the same period was $898 million versus $847 million a year ago. Adjusted EBITDA net leverage ratio stood at 4.8, flat year over year.

QSR’s board of directors announced a dividend payout of 58 cents per common share and partnership exchangeable unit of Restaurant Brands International Limited Partnership in the fourth quarter of 2024. The dividend is payable on Jan. 3, 2025, to shareholders of record at the close of business as of Dec. 20, 2024.

2024 Guidance Updated

QSR now expects adjusted net interest expense within $565-$575 million and segment G&A (excluding RH) in the $640-$650 million range. Share-based compensation and non-cash incentive compensation expenses are now anticipated to be in the range of $170-$175 million versus the prior projection of $170-$180 million.

The company still expects capital expenditures, tenant inducements and incentives (excluding RH) to be approximately $300 million.

Maintains Long-Term Guidance (2024-2028)

The company reiterated its long-term consolidated performance expectations for 2024 to 2028. It anticipates achieving more than 3% growth in comparable sales and at least 5% net restaurant growth. QSR projects system-wide sales growth exceeding 8%, with adjusted operating income expected to grow at a rate equal to or greater than the system-wide sales growth.

QSR’s Zacks Rank

Restaurant Brands currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

Chipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.

CMG reported adjusted EPS of 27 cents, outpacing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.

Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.

SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.

BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.

The company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Zacks Investment Research

Yum China Holdings, Inc. YUMC reported third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Following the results, shares of the company gained 7.2% during trading hours on Nov. 4. Positive investor sentiments were witnessed as the company emphasized its commitment to returning capital to its shareholders while sustaining growth investments. Confident in its cash-generating abilities, the company plans to increase capital returns to shareholders from $3 billion to $4.5 billion between 2024 and 2026.

YUMC’s Q3 Earnings & Revenue Discussion

Yum China reported adjusted earnings per share (EPS) of 77 cents, which beat the Zacks Consensus Estimate of 68 cents by 13.2%. The bottom line moved up 30.5% year over year.

Total revenues of $3.07 billion missed the consensus mark of $3.08 billion. However, the top line inched up 5.4% on a year-over-year basis. Excluding foreign currency translation, revenues increased 4% year over year.

Yum China Price, Consensus and EPS Surprise

Yum China price-consensus-eps-surprise-chart | Yum China Quote

Total system sales (excluding foreign currency translation) increased 4% year over year. The upside was attributable to the net new unit contribution of 7%. System sales at KFC and Pizza Hut increased 6% and 2% (excluding foreign currency translation) year over year, respectively.

During the quarter, YUMC's same-store sales reached 97% of the previous year's level and same-store transactions grew 1% on a year-over-year basis.

Operating Highlights

During the third quarter, total costs and expenses amounted to $2.7 billion compared with $2.59 billion reported in the prior-year quarter. We projected the metric at $2.73 billion.

The restaurant margin was 17% flat year over year. We estimated the metric at 18.4%.

Adjusted operating profit totaled $371 million compared with $327 million a year ago. Our estimate for the metric was $332 million.

Adjusted net income amounted to $297 million compared with $248 million reported in the prior-year quarter. Our estimate for the metric was $249.4 million.

Balance Sheet

As of Sept. 30, 2024, Yum China’s cash and cash equivalents were $1.19 billion compared with $1.13 billion as of Dec. 31, 2023. Net inventories were $359 million compared with $424 million as of Dec. 31, 2023.

As part of this expanded capital returns initiative, the company aims to return $1.5 billion to shareholders in 2024. During the first nine months, it delivered a record $1.24 billion in returns, including $1.06 billion through share buybacks and $187 million in cash dividends.

In November 2024, Yum China’s board of directors approved an additional $1 billion for share repurchases, increasing total authorization to $4.4 billion. From 2017 to Nov. 1, 2024, YUMC repurchased around 71.8 million shares for $3 billion, leaving approximately $1.4 billion in remaining authorization.

Management declared a quarterly cash dividend of 16 cents per common share. The dividend will be payable on Dec. 17 to shareholders of record as of the close of business on Nov. 26, 2024.

Unit Development and Other Updates

In the third quarter, Yum China opened 438 net new stores. As of Sept. 30, the total restaurant count reached 15,861, including 11,283 KFC stores and 3,606 Pizza Hut stores.

The company reported strategic expansion into underserved markets across China, enhancing customer access through tailored store models. Yum China is accelerating franchise store openings, focusing on strategic and remote locations, including lower-tier cities previously beyond reach. The company expects the franchise mix of net new stores to gradually increase to 40-50% for KFC and 20-30% for Pizza Hut over the next few years.

Yum China’s delivery contributed approximately 40% to KFC and Pizza Hut's company sales.

Digital orders contributed about 90% to the total company sales. Loyalty programs of KFC and Pizza Hut led to year-over-year growth by increasing to more than 510 million members.

2024 Outlook

Yum China still projects net new store openings to be in the range of 1,500-1,700. Management continues to project capital expenditures to be between $700 million and $850 million.

YUMC’s Zacks Rank

Yum China currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Retail-Wholesale Releases

Chipotle Mexican Grill, Inc. CMG reported mixed third-quarter 2024 results, with earnings beating the Zacks Consensus Estimate for the seventh consecutive quarter but revenues missing the same after beating in the preceding four quarters.

CMG reported adjusted EPS of 27 cents, outpacing the Zacks Consensus Estimate of 25 cents. The bottom line increased 17.4% from 23 cents reported in the year-ago quarter. Quarterly revenues of $2,793.6 million missed the consensus mark of $2,817 million. However, the top line rose 13% on a year-over-year basis. This upside was driven by strong comparable restaurant sales growth, backed by higher transactions of 3.3% as well as a 2.7% rise in average checks.

Shake Shack Inc. SHAK posted third-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Both top and bottom lines also increased on a year-over-year basis. The company ramped up its investment in marketing strategies and programs aimed at increasing guest engagement and brand awareness, even amid a challenging market environment. These efforts have paid off, as the company has achieved some of the highest brand awareness levels on record, which, in turn, is fueling robust sales and profitability growth.

SHAK’s fiscal third-quarter adjusted EPS came in at 25 cents, which beat the Zacks Consensus Estimate of 20 cents. In the prior-year quarter, the company reported adjusted EPS of 17 cents. Quarterly revenues of $316.9 million beat the consensus mark of $315 million. The top line increased 14.7% on a year-over-year basis.

BJ's Restaurants, Inc. BJRI reported third-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Both top and bottom lines increased on a year-over-year basis.

The company reported an adjusted loss per share of 13 cents, missing the Zacks Consensus Estimate of 3 cents. In the year-ago quarter, it recorded an adjusted loss per share of 16 cents. Total revenues of $325.7 million beat the consensus mark by 0.04%. The top line inched up 2.2% year over year. This upside was backed by strong guest traffic and Pizookie Meal Deal performance.

Zacks Investment Research