Risk, returns & timeframes illustration
1 min read
February 20, 2023
by
Belinda Nash

Comfort eating out of recession 😋

While inflation’s making a grab for our wallets we’re fighting back the only way we know how: eatin’ cheap! Dollar dining is back on the menu and while pesky supermarket prices may have stopped us reaching for a steak dinner, in the US the grills are sizzling. Yeehaw!
Risk, returns & timeframes illustration
1 min read
February 20, 2023
by
Belinda Nash

Comfort eating out of recession 😋

While inflation’s making a grab for our wallets we’re fighting back the only way we know how: eatin’ cheap! Dollar dining is back on the menu and while pesky supermarket prices may have stopped us reaching for a steak dinner, in the US the grills are sizzling. Yeehaw!
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Elasticated pants get ready for the snack attack! 🍔 Hungry inflation might be trying to take a bite out of our wallets but it hasn’t stopped us reaching for comfort food. And it looks like fast-food chains and diners are taking the biggest slice of the pie. 🥧 

So too are some shareholders. Super Bowl rebuffer Burger King parent Restaurant Brands (QSR) plans to King-size their April dividend payments to a flamin’ good 3.3%. This follows strong fourth-quarter results that beat revenue expectations but slightly missed on earnings, just as incoming CEO Joshua Kobza readies to ascend his throne. 👑 

70-year-old Denny’s (DENN) 24/7 low dollar dining ain’t looking too shabby either. Has their tantalising March menu refresh added to their all-day Diner Deals got Denny's customers thirsty? 🍰 The company posted a fourth quarter ‘earnings surprise’ of 12.50%. And their revenues of US$120.85 million chomped past Zacks Consensus Estimate by 0.15%, topping their previous year by a tasty 12.27%, with staffing and turnover now ‘comparable’ to pre-pandemic levels.

Outback Steakhouse owner Bloomin' Brands (BLMN) might be yeehawing too following a share surge following their ‘mixed’ fourth-quarter earnings. 🥩 They beat earnings estimates of US$0.65 a share landing at US$0.68. But there’s sizzle ahead, the company announcing a US$125 million share buyback.

Shake Shack (SHAK) meanwhile is once bitten twice shy after price hikes in beef, fries, dairy, packaging and, erm, truffles, leading to a quarter net loss of US$11.1 million. 🍄 ‘Though, while earnings per share (EPS) were down 6 cents (US), they were 5 cents (US) higher than Wall Street expectations. Revenue was also a snack-size higher, at US$238.5 million versus US$238.2 million expected.

BJ’s Restaurants’ (BJRI) better than expected earnings results drizzled the sauce too. Citigroup lifted their target price from US$30 to US$35, Barclays gave them an ‘underweight’ rating, and Deutsche Bank Aktiengesellschaft added extra cheese with their ‘buy’ rating.👀

But proving not everything’s always bigger in Texas, Texas Roadhouse (TXRH) fell short of analysts’ expectations, missing on earnings and revenue …a Texas takeaway cocktail hangover, perhaps? 🍹

Belinda Nash
Finance writer
Linkedin

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

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