Core Insights - Papa Johns is the first restaurant to implement Google Cloud's Gemini Enterprise for Customer Experience, enhancing its digital ordering capabilities with a unified voice and text AI system [1][2][3] Company Developments - The new Food Ordering agent aims to improve speed, accuracy, and real-time personalization for over 150 million customers globally [1] - Papa Johns is positioning itself as a leader in the "agentic" customer experience by being the launch customer for Google Cloud's omnichannel platform [2][4] - The partnership with Google Cloud reflects Papa Johns' commitment to leveraging technology for a seamless customer experience and operational efficiency [3] Technological Innovations - Key features of the Food Ordering agent include: - Intelligent Deal Wizard that reduces cart abandonment by automatically applying the best value combinations [6] - Advanced Voice & Group Ordering that automates complex orders, ensuring accuracy even for multi-person requests [6] - Seamless reordering flow that identifies returning loyalty customers and facilitates quick reordering [6] Industry Context - The retail industry is transitioning into an era of agentic commerce, where AI serves as a critical driver of business value [4] - Papa Johns is setting a new industry benchmark by moving beyond traditional chatbots to create a more fluid and intelligent customer experience [4]

Core Thesis - Domino's Pizza, Inc. is positioned strongly in the U.S. pizza market, leveraging its franchisee economics, advertising budget, and supply chain to outmaneuver competitors [2][4] Financial Performance - As of November 28th, Domino's shares were trading at $419.63, with trailing and forward P/E ratios of 24.53 and 21.51 respectively [1] - The company has a return on assets of 34% and a return on invested capital of 85.6%, with cash flow per share nearly tripling since 2017 [4] Market Strategy - Promotions like the 'Best Deal Ever' at $9.99 for any large pizza have successfully attracted value-conscious consumers, enhancing volume and franchisee profitability [3] - Domino's has expanded onto delivery aggregators like Uber Eats and Door Dash while maintaining control over the delivery experience, aiming for similar market share on these platforms as in proprietary channels [4] Growth Outlook - CEO Russell Wiener is confident in achieving 3% same-store sales growth in 2026 and beyond, while continuing to capture market share [2] - The stock is considered to have a strong risk/reward profile, with a potential target of $500 per share by the end of 2026, despite limited downside in recessionary scenarios [5]

Core Insights - FranShares is facilitating access to quick service restaurant (QSR) investments for accredited investors, traditionally reserved for institutional capital [1][4] - The discussion highlighted the resilience and essential demand for QSRs, especially during economic downturns, making them a viable investment option [6][12] Group 1: Investment Opportunities - FranShares packages select portfolios from Tasty Restaurant Group, which operates over 400 restaurants, allowing investors to buy fractional interests at lower minimums compared to acquiring a single unit [2][3] - The platform enables investments in established QSR brands like Burger King and Dunkin', managed by experienced operators, while handling sourcing and structuring [9][13] Group 2: Value Creation in QSRs - Triton Pacific and Tasty Restaurant Group focus on acquiring established units, centralizing operations, and investing in upgrades to enhance store-level economics [7][8] - The strategy emphasizes improving traffic, average ticket size, and labor efficiency, which are critical for long-term profitability [8] Group 3: Market Positioning and Strategy - The discussion contrasted the current enthusiasm for AI and tech stocks with the stable demand for QSRs, suggesting that QSR investments can provide diversification away from volatile public markets [5][6] - Buehler noted that QSRs are easier to underwrite due to their predictable consumer behavior, making them a more stable investment compared to tech stocks [6] Group 4: Investor Access and Education - FranShares is hosting in-person events for accredited investors to learn more about QSR strategies and engage with private equity and franchise operators [4][12] - Investors can utilize self-directed IRAs and solo 401(k)s to allocate funds to QSR investments through FranShares, aligning with long-term retirement strategies [10][11]

Core Insights - McDonald's Corporation is enhancing its value positioning in the U.S. to address declining traffic among lower-income consumers, emphasizing value perception as a key driver of customer choice [1][4] - The company has relaunched its Extra Value Meals (EVMs) with clear price anchors, which represent approximately 30% of U.S. transactions, aiming to restore consistency and predictability in its core menu [2][7] - McDonald's is providing significant financial support to franchise operators during this transition, with a total of $90 million expected in co-investment [3][4] Financial Performance - McDonald's shares have increased by 4.9% this year, contrasting with an 11.2% decline in the industry, while competitors like Starbucks, Sweetgreen, and Chipotle have seen declines of 9.5%, 81.1%, and 49.7% respectively [5][7] - The company trades at a forward price-to-sales (P/S) multiple of 7.72, significantly higher than the industry average of 3.34, with competitors like Starbucks, Sweetgreen, and Chipotle having P/S multiples of 2.41, 0.94, and 3.09 respectively [9] Earnings Projections - The Zacks Consensus Estimate for McDonald's 2026 earnings per share has decreased by 0.8% to $13.28, with projections indicating a 9.5% rise in earnings for that year [10][12] - In comparison, industry peers Sweetgreen and Chipotle are expected to see earnings increases of 15.9% and 5.4% respectively in 2025, while Starbucks is projected to rise by 15% in 2026 [12]

Core Viewpoint - McDonald's Corporation, valued at $213.4 billion, operates over 38,000 restaurants globally, but has underperformed the broader market in stock performance over the past year [1][2]. Financial Performance - McDonald's stock prices have gained 3.4% year-to-date and 1.7% over the past 52 weeks, significantly lagging behind the S&P 500 Index's gains of 14.4% in 2025 and 12.7% over the past year [2]. - The company reported a 6% increase in systemwide sales on a constant currency basis and an 8% increase after forex translation, with comparable sales growing by 3.6% [4]. - Total revenue for the quarter grew 3% year-over-year to $7.1 billion, exceeding market expectations by 15 basis points [4]. - Adjusted EPS declined by 31 basis points to $3.22, missing consensus estimates by 3.9% [4]. Analyst Expectations - For the full fiscal year 2025, analysts project an adjusted EPS of $12.15, reflecting a 3.7% year-over-year increase [5]. - The consensus rating among 36 analysts covering McDonald's stock is a "Moderate Buy," with 14 "Strong Buys," one "Moderate Buy," 20 "Holds," and one "Strong Sell" [5]. Analyst Ratings - On November 6, Baird analyst David Tarantino maintained a "Neutral" rating on McDonald's and raised the price target from $322 to $325 [7].

Morning, Kate. >> Good morning, Carl. So, Sweet Green CEO John Newman saying last night, quote, "I think it's pretty obvious that the consumer is not in a great place overall, but I think it's much more complicated than that." Taking a look at the big picture here, lower income consumers pulling away from quick service chains.McDonald's CEO noting a bifurcated consumer with lower income traffic across the sector down double digits. A similar pullback taking shape this quarter at Wingstop. CNBC viewed a memo ...

Market Overview - Pre-market trading has declined, reflecting a cautious sentiment towards AI infrastructure spending and a lack of economic data, particularly during what was expected to be Jobs Week [1] - The market has seen a downward trend over the past five days, moving away from all-time highs reached in late October [1] Employment Data - Non-farm payroll numbers from the U.S. Bureau of Labor Statistics (BLS) are unavailable due to a government shutdown, with estimates suggesting a loss of 60,000 jobs last month [2] - The unemployment rate is expected to rise to 4.5%, while hourly wages are anticipated to remain steady at a year-over-year increase of 0.3% [2] - ADP reported an addition of 42,000 new jobs, which is better than BLS estimates but still indicates a weak labor market [3] - The Challenger Job Cuts report indicated 153,000 job cuts, highlighting ongoing challenges in employment [3] Interest Rate Expectations - There is a tentative expectation for a 25 basis-point interest rate cut in approximately 4.5 weeks, although market indexes may have already priced in this cut [4] - The "neutral rate" of inflation is uncertain but is believed to be higher than the optimal 2% [4] Earnings Reports - Wendy's (WEN) reported Q3 earnings of $0.24 per share, exceeding expectations by 20%, leading to a 9% increase in shares [5] - Six Flags Entertainment (FUN) posted earnings of $3.28 per share, surpassing the consensus estimate by 46.4%, although shares are down 2% in early trading [5] - Fluor (FLR) reported Q3 earnings of $0.68 per share, beating expectations by 54.55%, with shares up 4.6% in pre-market trading [6] - Constellation Energy (CEG) reported earnings of $3.04 per share, falling short of the anticipated $3.13, resulting in a 6.3% decline in shares [7] - Canopy Growth (CGC) shares increased by 12% despite reporting a loss of $0.01 per share, an improvement from the expected loss of $0.10 [8] Consumer Sentiment and Credit - The University of Michigan Consumer Sentiment report for November is expected to show a slight decrease to 53.0 from 53.6, remaining above the neutral threshold of 50 [9] - Consumer credit for September is projected to total $10.0 billion [9]

Core Insights - Angry Chickz has secured an investment from Saratoga Investment Corp. to facilitate national expansion, with plans to increase from 33 locations to over 50 in the next year [1] - The company reported $55.6 million in sales for 2024, reflecting a 58.7% year-over-year increase, with average unit volumes of $2.1 million, surpassing competitors like Popeyes and KFC [2] Company Overview - Founded in 2018 in Los Angeles, Angry Chickz has rapidly grown its presence in the quick-service restaurant (QSR) chicken category [2] - The CEO, David Mkhitaryan, expressed enthusiasm about the partnership with Saratoga, emphasizing the importance of capital and strategic support for growth while maintaining quality and culture [3] Investment Details - Saratoga Investment Corp. is a publicly traded business development company that finances middle-market companies across various industries, with a portfolio that includes other food brands [4] - Mike Grisius, co-managing partner and chief investment officer at Saratoga, highlighted Angry Chickz as a compelling growth investment opportunity due to its strong brand and operational discipline [5] - DelMorgan & Co. acted as the exclusive financial advisor for Angry Chickz during this transaction, while Glaser Weil LLP provided legal counsel [5]

Group 1 - Whataburger has undergone significant leadership changes, with Debbie Stroud becoming CEO in January and new appointments for COO and chief development officer [3][4] - The company has expanded its operations to 1,100 locations, entering its 17th state with a new location in North Carolina [4] - Whataburger is focusing on digital transformation and technology to enhance customer and team member experiences, as emphasized by the new EVP and chief digital and technology transformation officer, Rohit Kapoor [4][7] Group 2 - The quick service restaurant sector is experiencing a trend of technology modernization, with other companies like McDonald's and Wendy's also updating their IT leadership [5] - Executives in the industry are increasingly looking to implement AI to improve customer experiences and operational efficiency [5]

Core Insights - Domino's Pizza is effectively leveraging multiple value strategies to drive sales growth in a challenging macroeconomic environment, with the "Best Deal Ever" promotion being a significant contributor to U.S. sales growth for Q3 2025 [1][2]. Promotions and Sales Performance - The "Best Deal Ever" promotion, offering any pizza with any toppings for $9.99, was extended due to its popularity, resulting in a 5.2% increase in same-store sales and a 6.9% growth in revenue for the quarter [2]. - The company also reintroduced a $6.99 carryout special, which has been positively received by customers [2]. Operational Strategy - CEO Russell Weiner noted that the success of the "Best Deal Ever" promotion was driven by franchisee feedback, indicating its effectiveness in boosting business [3]. - The operational changes implemented through the "Hungry for More" strategy have enabled the execution of complex promotional deals that were not feasible in the past [3]. Delivery and Menu Innovation - The third quarter marked the first full period of Domino's complete DoorDash rollout, with expectations for sales growth on the platform as marketing awareness increases into Q4 2025 and 2026 [4]. - Menu innovation, including the introduction of Parmesan Stuffed Crust Pizza and new flavors of Bread Bites, has attracted new customers and improved the product mix [4]. Future Outlook - Domino's anticipates U.S. same-store sales growth of 3% for the year and 2% internationally, outpacing the broader quick-service restaurant (QSR) pizza segment despite ongoing macroeconomic challenges [5]. - The company expects to continue gaining market share against the QSR pizza industry, with plans for various initiatives to maintain its value proposition [6].