SONC

Dividend Increases/Decreases for the Week Ending October 16

by

Below we provide a list of firms that raised/lowered their dividends during the week ending October 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Antero Midstream (AM): now $0.205 per share quarterly dividend, was $0.19. Cantel (CMN): now $0.06 per share semi-annual dividend, was $0.05. Cintas (CTAS): now $1.05 per share annual dividend, was $0.85. Dorchester Minerals (DMLP): now $0.1942 per share quarterly dividend, was $0.1674. Eaton Vance (EV): now $0.265 per share quarterly dividend, was $0.25. Healthcare Services (HCSG): now $0.18 per share quarterly dividend, was $0.1788.  International Paper … Read more

10 Bucks per Hour; What It Really Means

by

Source: US Department of Labor, Walmart Walmart (WMT) is quite savvy. The big box retailer announced February 19 it would raise the minimum wage for all of its US workers to $9 per hour in April of this year and at least $10 per hour by next February. The move comes amid ongoing public scrutiny of its labor practices, elevated worker turnover, and general malaise among the ranks on social media platforms. At face value, the news headlines show Walmart caving to public pressure, and a win for big labor, but in reality, the retailing giant is merely doing what good businesses do – pleasing customers (which are its workers, too) and widening its economic moat. Hiking wages accomplishes both. … Read more

Holy Guacamole! McDonald’s Wishing It Had Kept Chipotle

by

Very few investors probably remember that Chipotle (CMG) used to be owned in part by McDonald’s (MCD). McDonald’s had originally taken a stake in Chipotle in February 1998, when Chipotle had but 14 restaurants in Denver. The maker of the Big Mac would go on to own 90% of the subsidiary and eventually spin it off in an initial public offering in January 2006. McDonald’s would receive ~$1.5 billion from the sale, but with Chipotle’s market capitalization now at over $20 billion, it’s clear the burger-and-fries behemoth exited way too early. The most recently-reported results by both restaurants tell the diverging story quite well. McDonald’s reported relatively disappointing second-quarter results Tuesday. The performance can best be described as flat. Global … Read more

Valuentum Economic Castleâ„¢ Rating Update

by

Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Restaurant Industry Update

by

The fast-food (quick-service) breakfast wars have intensified. It has become a high-stakes game for all participants, and most have gone all-in to capture market share, to use poker parlance. The NPD Group, a leading global information firm, noted that the pace of expansion for fast-food breakfast across the restaurant industry has been a key bright spot, and executives across the industry are taking note: Quick service, which accounts for about 80 percent of total restaurant morning meals, showed the strongest increase in breakfast visits of all restaurant segments with a 4 percent increase in the year ending December 2013 period compared to year ago, reports NPD CREST, which every day tracks how consumers use restaurants and other foodservice outlets. Morning … Read more

McDonald’s US Comparable Sales Fall

by

On Monday, McDonald’s (MCD) reported lackluster November comparable sales. European comparable sales (comps) were solid, up 1.9%, but comps in the APMEA (Asia/Pacific, Middle East and Africa) and US weighed on expansion, falling 2.3% and 0.8%, respectively. Performance in the APMEA was weighed down by weakness in Japan, while US comps suffered from heightened competitive activity and relatively flat industry demand trends that were only partially offset by strength in breakfast, chicken menu choices and expanded value offerings. Systemwide sales advanced 3.1% in constant currencies during the month. The news from McDonald’s is unique in that it runs counter to a report from the National Restaurant Association, released December 2, that the Restaurant Performance Index, RPI (1), hit a four-month … Read more

The Big Burger Trade-up

by

Casual dining chain Red Robin (click ticker for report: ) reported strong second quarter results last week. Revenue jumped 6.5% year-over-year to $238 million, just a touch shy of consensus estimates. Conversely, earnings per share surged 48% year-over-year to $0.77, easily exceeding consensus expectations. Image Source: RRGB 2Q FY2013 Slides The most positive news from Red Robin, in our view, was the robust same-store sales growth rate of 4.3%. While the firm was lapping just a 0.8% increase in the year prior period, the increase was a nice jump sequentially, underscoring the effectiveness of the company’s brand transformation. Traffic declined 0.7% year-over-year, but that was far better than the 3.1% decline experienced by the average industry competitor. The combination of … Read more

Poor Weather Punishes Sonic

by

Fast-food franchise Sonic (click ticker for report: ) reported a lackluster third quarter Monday as the firm dealt with lousy weather throughout the US. Revenue decreased a modest 2% year-over-year to $146 million, falling short of consensus expectations. Earnings per share increased 8% year-over-year to $0.26 per share, roughly in-line with consensus estimates. Management continues to anticipate that the firm will generate $45-$50 million in free cash flow for fiscal year 2013. The story for Sonic during the third quarter was weak same-store sales growth. Aggregate same-store sales grew an anemic 0.1% year-over-year, with franchise-owned locations sales up 0.2% and corporate-owned sales down 1.1% year-over-year. The main culprit behind the decline was weather, which the firm believes accounted for 300-400 … Read more

Sonic Posts a Solid Second Quarter

by

Fast-food restaurant Sonic (click ticker for report: ) reported solid second quarter results Monday afternoon. Revenue fell 3% year-over-year to $111 million as the company lapped a leap year in the same period of last year, putting the number in-line with consensus estimates. Nevertheless, earnings increased 67% year-over-year to $0.05 per share, which was also in-line with consensus expectations. For the quarter, same-store sales (excluding the extra day) jumped 1.3% year-over-year on a systemwide basis, but rose 3.3% at company owned locations. Divergence between company-owned and franchise-owned restaurants is not uncommon, and this continued gap could continue for a variety of reasons, including the owner’s skill level and promotional execution. Regardless, the results were relatively strong, suggesting the company could be … Read more