Domino's (DPZ) posted mixed fourth quarter and fiscal 2025 results as the chain doubles down on growing sales, store count, and profits while consumers home in on value. The pizza chain posted revenue of $1.54 billion for the fiscal fourth quarter on Monday morning. That was up 6.4% year over year and a tick above the $1.52 billion Wall Street forecast, per Bloomberg consensus data. The bump was driven by higher order volumes and an increase in the company's food basket pricing to stores. Adjusted earnin ...

Core Insights - Domino's Pizza Inc. reported fourth-quarter results that exceeded revenue expectations but slightly missed on earnings, leading to a more than 3% increase in shares intra-day [1] - The company posted adjusted earnings per share of $5.35, falling short of the analyst consensus of $5.39 by $0.04 [1] - Revenue totaled $1.54 billion, surpassing estimates of $1.52 billion and increasing by 6.4% from $1.44 billion in the prior-year quarter [1] Financial Performance - U.S. same-store sales rose by 3.7% during the quarter, while international same-store sales increased by 0.7% excluding foreign currency effects [2] - Operating income climbed by 8.0% to $295.7 million, compared to $273.7 million in the fourth quarter of 2024 [2] - For the full fiscal year 2025, U.S. same-store sales grew by 3.0%, while international same-store sales advanced by 1.9% [2] - Global net store growth totaled 776 locations for the year [2] Dividend Announcement - The company's Board of Directors approved a 15% increase in the quarterly dividend, raising it to $1.99 per share [3]

Core Insights - Restaurant Brands International reported strong quarterly earnings and revenue, exceeding expectations due to robust international growth [1][2] Financial Performance - The company reported a fourth-quarter net income of $113 million, or 34 cents per share, down from $259 million, or 79 cents per share, a year earlier [1] - Adjusted earnings were 96 cents per share, slightly above the expected 95 cents [7] - Net sales increased by 7.4% to $2.47 billion, with organic revenue growth of 6.5% after excluding currency fluctuations and refranchising sales [2] Same-Store Sales - Same-store sales rose by 3.1%, driven by strong international performance [2] - Outside the U.S. and Canada, same-store sales increased by 6.1%, with international Burger King restaurants achieving 5.8% growth, surpassing analyst expectations of 3.7% [3] Segment Performance - Tim Hortons reported a same-store sales growth of 2.9%, below the projected 3.8%, contributing 46% to overall revenue [5] - Burger King achieved a same-store sales growth of 2.7%, exceeding the expected 2.4% [5] - Popeyes experienced a decline in same-store sales of 4.8%, worse than the anticipated 2.4% decrease [5] Strategic Initiatives - The company plans to expand its international presence, including a joint venture for Burger King China, where CPE owns approximately 83% and Restaurant Brands retains a 17% stake [4] - To address challenges at Popeyes, the company appointed Burger King veteran Peter Perdue to lead the U.S. and Canadian business and named Matt Rubin as the new chief marketing officer [6] - Further growth strategies will be discussed at the investor day in Miami on February 26 [6]

Core Insights - Starbucks holds a $110 billion market cap and reported revenue of $9.9 billion in Q1 of fiscal 2026, but its shares are trading 23% below their peak as of February 4 [1] - Dutch Bros is emerging as a strong competitor, generating nearly 75% of its revenue after 10 a.m., unlike leading chains that see half of their sales during that time [5][6] - Dutch Bros has achieved 12 consecutive quarters of same-store sales growth, contrasting with Starbucks' six straight quarters of declines prior to a recent growth report [8] Company Performance - Starbucks' same-store sales are projected to rise by 3% in fiscal 2026, indicating a potential recovery [9] - Dutch Bros aims for an average annual unit volume of $1.8 million, supported by its unique sales distribution throughout the day [6] Expansion Potential - Dutch Bros has a market cap of $9 billion and had 1,081 locations as of September 30, 2025, indicating significant room for growth [10] - The company believes there is potential for 7,000 stores in the U.S., particularly in the eastern and northern regions, which could lead to substantial revenue and earnings growth [11]

Financial Data and Key Metrics Changes - The company reported a positive same-store sales comp of +0.3% and total revenue growth of +2.3% for the December quarter, driven by strength in retail and league businesses [4] - The company experienced a drag from the events business, which had been a significant issue in previous quarters, but showed improvement in January with strong double-digit results [4][5] Business Line Data and Key Metrics Changes - Retail comp was just shy of 2% at 1.7%, while retail food sales grew by 10.9%, and retail non-alcoholic comp increased by 26.2% [28] - The events business, previously a drag, has shown organic growth in January and February, contributing positively to overall performance [11][19] Market Data and Key Metrics Changes - The company closed on the acquisition of Raging Waters, the largest water park in California, which is expected to contribute significantly to EBITDA in the upcoming quarters [7] - The company operates approximately 100 Lucky Strike locations and plans to sunset the Bowlero brand by the end of the calendar year, simplifying its portfolio [7] Company Strategy and Development Direction - The company is shifting towards a balanced approach that emphasizes both same-store sales growth and EBITDA expansion, with more targeted investments [6] - A refreshed AMF look is planned for rollout later this year, aiming to strengthen the brand's value-oriented offering and differentiate it from Lucky Strike [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving guidance despite challenges, citing strong January results and a favorable comp environment for the upcoming months [11][46] - The company is focused on optimizing costs and improving margins, particularly in the water park segment, which is expected to contribute positively in the fourth quarter [46] Other Important Information - The company made significant investments in marketing, resulting in a 200% increase in media impressions and a 28% increase in online revenue year-over-year [24] - The introduction of server tablets in locations has led to a 7% increase in average check size, indicating positive impacts from technology investments [30] Q&A Session Summary Question: Why didn't the company lower EBITDA guidance for the full year? - Management remains confident in achieving guidance due to improvements in the events business and strong performance in retail and leagues [10][11] Question: What was the impact of the corporate events business on margins in the second quarter? - Direct drags included a $6 million increase in center payroll and a $4 million increase in marketing investment, which affected profitability [15] Question: What initiatives have been made to rebuild the events business? - The company implemented dynamic pricing strategies and improved marketing partnerships, which have positively impacted the events business [19][20] Question: How did food and beverage sales trend during the quarter? - Retail food sales outperformed, while alcohol sales were down, prompting a shift towards zero-proof beverage offerings [28][29] Question: What are the prospects for growth in the water parks? - The company has plans for expansions and improvements in water parks, with expectations for significant revenue increases from these investments [50][52]

Financial Data and Key Metrics Changes - The company reported a positive same-store sales comp of +0.3% and total revenue growth of +2.3% for the December quarter [4] - The events business showed its best performance in years, ending nearly flat for the quarter, indicating a turnaround [4][5] - Investments in payroll, marketing, and activity levels were made to drive traffic, although not all spending generated the expected ROI, particularly in incremental labor [5] Business Line Data and Key Metrics Changes - Retail and leagues performed well, contributing to the overall revenue growth, while the events business began to recover [4] - Retail comp was reported at 1.7%, with food sales outperforming at +10.9%, while alcohol sales were down by 4.7% [29] - The company is focusing on a zero-proof beverage program, which has shown positive results, and plans to introduce new offerings like Dirty Soda and Boba drinks [30] Market Data and Key Metrics Changes - The company closed on the acquisition of Raging Waters, which is expected to contribute significantly to EBITDA in the upcoming quarters [6] - The company operates approximately 100 Lucky Strike locations and plans to sunset the Bowlero brand by the end of the calendar year, simplifying its portfolio [7] Company Strategy and Development Direction - The company is shifting towards a balanced approach that emphasizes both same-store sales growth and EBITDA expansion, with more targeted investments [5] - A refreshed AMF look is planned for rollout later this year, aiming to strengthen its value-oriented offering and differentiate it from Lucky Strike [8] - The company aims to build critical mass in the Lucky Strike brand, expecting to reach 200 locations by the end of 2026, which will enhance marketing efforts [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA guidance despite challenges, citing strong performance in retail and leagues as well as a turnaround in the events business [10][12] - The company anticipates significant seasonal lift to earnings from its water parks and family entertainment centers as summer approaches [6][46] - Management acknowledged the impact of recent snowstorms on revenue but remains optimistic about the overall performance moving forward [70] Other Important Information - The company has made significant investments in marketing, resulting in a 200% increase in media impressions and a 28% increase in online revenue year-over-year [22] - The company is focused on optimizing labor costs and marketing efficiency to improve profitability [35][38] Q&A Session Summary Question: Why didn't the company lower EBITDA guidance for the full year? - Management expressed confidence in achieving guidance due to a turnaround in the events business and strong performance in retail and leagues [10][11] Question: What were the main drags on margins in the second quarter? - Direct drags included increased payroll costs, marketing investments, and labor inefficiencies [15] Question: What initiatives have been made to rebuild the events business? - Dynamic pricing strategies were implemented, which helped recover from previous declines in the events business [19][20] Question: How did food and beverage sales trend during the quarter? - Retail food sales grew by 10.9%, while alcohol sales were down, prompting a shift towards zero-proof beverage offerings [29][30] Question: What are the prospects for growth in the water parks? - The company has plans for expansions and improvements in its water parks, which are expected to yield high returns [51][55] Question: How should investors think about the next 50 Lucky Strike conversions? - The upcoming conversions are expected to follow a similar pattern to the first 100, with a focus on building brand presence in various markets [61][63]

Core Viewpoint - Brinker International, Inc. reported strong second-quarter results driven by menu updates, competitive pricing, and effective advertising, leading to increased customer acquisition and repeat visits Quarterly Sales - The company achieved adjusted earnings per share of $2.87, surpassing the analyst consensus estimate of $2.62 [2] - Quarterly sales reached $1.452 billion, exceeding the expected $1.411 billion [2] - Comparable restaurant sales increased by 7.5%, with Chili's showing an 8.6% increase, while Maggiano's experienced a decline of 2.4% [2] Operational Performance - Chili's reported a two-year comparable sales growth of 43%, with 19 consecutive quarters of same-store sales growth [3] - Operating income for the quarter was $168.4 million, up from $156 million a year ago, with an operating margin increase to 11.6% from 11.5% [3] - Adjusted restaurant operating margin decreased to 18.8% from 19.1% year-over-year [4] - Adjusted EBITDA was $223.5 million, compared to $215.8 million in the previous year [4] - The company ended the quarter with $15 million in cash and equivalents [4] Outlook - Brinker raised its fiscal 2026 adjusted earnings forecast to a range of $10.45 to $10.85 per share, up from $9.90 to $10.50, aligning with analysts' average estimate of $10.46 [5] - The fiscal 2026 revenue guidance was increased to $5.76 billion to $5.83 billion, from $5.60 billion to $5.70 billion, compared to the Street estimate of $5.761 billion [5] - The company anticipates a negative impact on fiscal 2026 results due to Winter Storm Fern, estimating a $20 million revenue loss and a 15 cents per-share hit to non-GAAP earnings [6]

Financial Data and Key Metrics Changes - Brinker reported total revenues of $1.45 billion for Q2 FY 2026, an increase of 7% over the prior year, with consolidated comp sales of +7.5% [19] - Adjusted diluted EPS for the quarter was $2.87, up from $2.80 last year [19] - Restaurant operating margin was 18.8%, compared to 19.1% in the prior year, a decrease of 30 basis points year-over-year [20] - Adjusted EBITDA for the quarter was approximately $223.5 million, a 3.6% increase from the prior year [23] Business Line Data and Key Metrics Changes - Chili's same-store sales were at +8.6%, outpacing the casual dining industry by 680 basis points, with a two-year cumulative comp of 43% [5] - Maggiano's reported comp sales for the quarter of -2.4%, but showed sequential improvement during the quarter [20][15] - Chili's top-line sales growth was driven by a price increase of 4.4%, positive traffic of 2.7%, and a positive mix of 1.5% [19] Market Data and Key Metrics Changes - Chili's was the number one traffic brand in casual dining for the entire 2025 year [13] - The company captured value leadership in casual dining and the broader restaurant industry over the past three years [12] - The average check at Chili's is still more than $3 less than direct competitors and more than $4 less than casual dining as a whole [13] Company Strategy and Development Direction - The company is focused on improving food, service, and atmosphere, with plans to continue menu renovations and introduce new offerings [7][10] - A reimage program for Chili's has started, with plans to complete 60-80 reimages in fiscal 2027 [24][90] - The company aims to maintain a disciplined capital allocation strategy while investing in restaurants and returning excess cash to shareholders [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid mid-single-digit comps for the back half of the year, despite potential pressure from the storm and holiday shifts [39][40] - The company anticipates wage inflation in the low single digits and a tax rate of approximately 19% [26] - Management remains focused on delivering sustainable long-term growth and believes the current strategy is effective [27] Other Important Information - The company repurchased an additional $100 million of common stock under its share repurchase program [25] - Capital expenditures for the quarter were approximately $63.7 million, driven by capital maintenance spend [23] - The company expects to face mid-single-digit inflation for the back half of the year due to rising beef prices [27] Q&A Session Summary Question: What contributed to the strong traffic and sales growth in the quarter? - Management noted stable pricing and positive performance from the Margarita of the Month and other menu items, with no significant changes in guest frequency [30][34] Question: What are the expectations for top-line performance in the back half of the year? - Management expects solid mid-single-digit comps, with potential traffic pressure due to the storm and holiday shifts [39][40] Question: Can you elaborate on the comp cadence for the back half of the year? - Management indicated that January will be impacted by the storm and holiday flip, but expects steady mid-single-digit performance thereafter [44] Question: How does the company plan to manage pricing power with the $10.99 anchor? - Management emphasized the importance of a barbell strategy to offer a range of price points and maintain a balanced sales mix [46][47] Question: What are the learnings from the reimaging program? - Management highlighted that guests and team members love the reimage units, and initial results are promising, with a focus on cost-effective improvements [53][56] Question: What is the outlook for new unit growth? - Management confirmed plans for 60-80 remodels in 2027 and anticipates significant new unit growth in 2028 [90][92]

Core Insights - Chipotle Mexican Grill experienced a challenging year in 2025, with a significant decline in stock value by approximately 39% due to negative same-store sales trends as consumers became more selective in their spending at fast-casual restaurants [1] - In light of the difficult performance in 2025, Chipotle management reaffirmed its full-year guidance for 2025 and expressed confidence in its strategic plan for 2026, indicating potential stabilization in the business [2][4] Group 1 - Chipotle's management expects full-year comparable restaurant sales to decline at a rate in the low single digits for 2025, alongside plans for 315 to 345 new company-owned restaurant openings, with over 80% featuring a Chipotlane [5] - The reaffirmation of guidance suggests that operations in Q4 2025 have aligned with expectations, and the CEO indicated a possibility of returning to mid-single-digit same-store sales growth in 2026, although challenges may persist in the early part of the year [6] - The leadership changes, including the appointment of a new chief marketing officer, are part of the company's strategy to navigate through the current challenges and aim for recovery [4][8]

Financial Data and Key Metrics Changes - Total sales for the fiscal first quarter were $73.5 million, compared to $64.5 million in the prior year period, representing a year-over-year increase of approximately 12.4% [9] - Comparable sales growth was negative 2.5%, with a negative traffic of 2.5% and flat price and mix [9] - Adjusted net loss was $2.8 million, or negative $0.23 per share, compared to an adjusted net loss of $1 million, or negative $0.08 per share in the prior year quarter [13] - Restaurant-level operating profit as a percentage of sales was 15.1%, compared to 18.2% in the prior year quarter [13] Business Line Data and Key Metrics Changes - The company opened four new restaurants in the first quarter and has 10 units under construction, including locations in new markets [7] - Labor as a percentage of sales improved to 32.5% from 32.9% in the prior year period due to operational initiatives [6] - Cost of goods as a percentage of sales increased to 29.9% from 29% in the prior year quarter, impacted by tariffs [10] Market Data and Key Metrics Changes - Comparable sales in the West Coast market were negative 2.8%, while the Southwest market saw negative 2.7% [9] - The company expects full-year costs to stabilize around 30% after considering tariffs and menu price adjustments [6] Company Strategy and Development Direction - The company aims to open 16 new restaurants in fiscal 2026, maintaining an annual unit growth rate above 20% [13] - Marketing efforts include a campaign with Kirby, coinciding with the release of Kirby Air Riders for Switch 2, and the introduction of a reservation system decoupled from the rewards program [7][8] - The company is focused on aggressive cost management, reducing G&A as a percentage of sales by 80 basis points on an adjusted basis [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive comparable sales for the year, citing strong performance in November and December [25] - The company anticipates that the pricing taken in November will continue to support sales growth and improve traffic [25] - Management noted that the broader industry is showing signs of improvement, which is encouraging for future performance [53] Other Important Information - The company has $78.5 million in cash, cash equivalents, and investments, with no debt [13] - General and administrative expenses as a percentage of sales were 13%, down from 13.5% in the prior year quarter [11] Q&A Session Summary Question: What led to the decision to decouple the reservation system from loyalty? - Management noted that more than half of visits by rewards members are through the reservation system, indicating better-than-expected uptake [20] Question: Do you expect positive comps in the February quarter? - Management confirmed expectations for positive comps in Q2, supported by strong performance in November and December [25] Question: How long would it take for tariff relief to impact financials? - Management indicated it would take 60 to 90 days to see benefits from reduced tariffs due to inventory turnover [30] Question: Can you comment on the impact of tariffs on other expense lines? - Management stated that tariffs have significantly impacted promotional costs, particularly for items sourced from overseas [100] Question: How are rewards members performing in terms of spending? - Management reported that rewards members spend about $6 more per person compared to non-members, with a significant increase in visit frequency [75] Question: What are the future planned promotions for the year? - Upcoming promotions include Sanrio for February and Jujutsu Kaisen for March and April [108]