Key Food Chains Ready For Earnings (MCD, EAT, YUM, CMG, PCFB, WEN)

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There are many restaurants reporting earnings this week, some who have suffered from economic sensitivity and some who have not.  People do have to eat when times are good and when times are tough, but many restaurants would be victims due to pricing and other factors.  This week we have many key earnings from retail food chains such as McDonalds Corp. (NYSE: MCD), Brinker International Inc. (NYSE: EAT), Yum! Brands Inc. (NYSE: YUM), Chipotle Mexican Grill, Inc. (NYSE: CMG), PF Chang’s China Bistro Inc. (NASDAQ: PFCB), and Wendy’s International Inc. (NYSE: WEN).

Tuesday we’ll get to see earnings out of McDonald’s Corp. (NYSE: MCD). The estimates for the restaurant chain from First Call are $0.70 EPS on $5.4 billion in revenues.  Next quarter estimates are $0.81 EPS on $5.77 billion in revenues. Estimates for fiscal Dec-2008 are $3.21 EPS on $23.16 billion in revenues.  Analysts have an average price target north of $62.00, and McDonald’s 52-week trading range is $46.64 to $63.69.  Shares closed Monday up 0.6% at $58.67.

Tuesday we’ll get to see earnings out of Brinker International Inc. (NYSE: EAT). The estimates for the restaurant chain from First Call are $0.32 EPS on $895.62 million in revenues.  Next quarter estimates are $0.43 EPS on $922.21 million in revenues. Estimates for fiscal June-2008 are $1.40 EPS on $3.57 billion in revenues. Estimates for fiscal June-2009 are $1.64 EPS on $3.65 billion in revenues.  Analysts have an average price target north of $20.00, and Brinker International’s 52-week trading range is $14.65 to $34.33.  This stock was on our list of top stocks that may double from the lows by the end of the recession.  Shares closed Monday up 2.6% at $19.60.

Tuesday we’ll get to see earnings out of Yum! Brands Inc. (NYSE: YUM).The estimates for the restaurant chain from First Call are $0.40 EPS on$2.35 billion in revenues.  Next quarter estimates are $0.42 EPS on$2.49 billion in revenues. Estimates for fiscal Dec-2008 are $1.86 EPSon $10.89 billion in revenues.  Analysts have an average price targetnorth of $40.00, and Yum! Brands Inc.’s 52-week trading range is $28.37to $40.60.  Shares closed Monday down 1.6% at $39.07.

Wednesday we’ll get to see earnings out of Chipotle Mexican Grill, Inc.(NYSE: CMG). The estimates for the restaurant chain from First Call are$0.48 EPS on $298.22 million in revenues.  Next quarter estimates are$0.75 EPS on $341.66 million in revenues. Estimates for fiscal Dec-2008are $2.68 EPS on $1.35 billion in revenues.  Analysts have an averageprice target north of $131.00; and Chipotle Mexican Grill’s 52-weektrading range is $63.91 to $155.49.  Shares closed Monday up 2.9% at$118.28.

Wednesday we’ll get to see earnings out of PF Chang’s China Bistro Inc.(NASDAQ: PFCB). The estimates for the restaurant chain from First Callare $0.31 EPS on $304.89 million in revenues.  Next quarter estimatesare $0.35 EPS on $307.45 million in revenues. Estimates for fiscalDec-2008 are $1.33 EPS on $1.24 billion in revenues.  Analysts have anaverage price target north of $28.00, and PF Chang’s China Bistro’s52-week trading range is $20.41 to $42.97.  Shares closed Monday upalmost 2% at $30.88.

On Friday, we get earnings out Wendy’s International Inc. (NYSE: WEN).The estimate from First Call on the major lagging fast food chain are$0.17 EPS on $573.7 million in revenues.  Next quarter estimates are$0.43 EPS on $629.6 million in revenues, and the fiscal Dec-2008 are$1.29 EPS and $2.43 Billion in revenues.  On this one we are lookingfor another spate of bad news from the company, but activist investor activity has us interested for our Special Situations newsletter review.

Jon C. Ogg
April 21, 2008