Investors should take notice of these earning calls this week for any data they may provide to justify a bull rally.
Investors are gearing up for another solid earnings performance from Darden Restaurants.
Consumers may be reducing their spending, but are still willing to splurge on a visit to Red Lobster or Olive Garden.
It appears that McDonald’s made a strategic misstep as they began pushing premium products like their Angus burgers and McCafe drinks instead of focusing consumers on their value options.
Declining store traffic and an absence of a compelling value proposition will likely result in disappointing quarterly results from Brinker.
The earnings calendar looks very light this week ahead of next week’s initial third quarter reports. Here are the key earnings reports should watch for this week:
We are expecting another solid quarter with revenues likely inline with Street consensus, but cost savings should deliver better than expected earnings results.
Wall Street has taken a very negative view towards Burger King’s fourth quarter earnings results. In fact, analyst consensus estimates are below the low end of the company’s guidance range. In addition, analysts at JP Morgan and Citigroup both downgraded the fast food chain in recent weeks. Now that the bar has been set so low, we believe there is significant potential for upside surprise. ...
Despite concerns surrounding the economy, we believe that McDonald’s is well positioned to continue growing their earnings.
The Red Lobster and Olive Garden brands continue to remain popular with casual diners despite lower-cost alternatives that are often available to consumers.
