Core Viewpoint - Starbucks is facing pressure from a coalition of investors, including public-sector pension funds, urging shareholders to vote against the reelection of two directors due to ongoing labor relations issues [1][4]. Group 1: Labor Relations and Union Activities - The coalition's move targets lead independent director Jorgen Vig Knudstorp and Beth Ford, chair of the Nominating and Corporate Governance Committee, amid Starbucks' struggle to finalize a collective agreement with its unionized baristas [2]. - Over 3,800 baristas participated in a nationwide strike last year, marking the longest work stoppage in Starbucks' history, as the union demands better staffing, predictable schedules, and higher pay [3]. - Investors expressed concerns that a lack of constructive relations with the unionized workforce could hinder the company's turnaround efforts [4]. Group 2: Investor Concerns and Company Response - The investor group previously raised concerns about the board's decision to eliminate the Environmental, Partner, and Community Impact Committee without explanation [5]. - Starbucks stated that the responsibilities of the eliminated committee were reassigned to existing committees, with the full board taking on primary labor oversight [6].

Core Insights - Domino's Pizza, Inc. (DPZ) is set to report its fourth-quarter fiscal 2025 results on February 23, with earnings expectations showing a mixed performance in the past quarters, averaging a surprise of 1.1% [1] Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for earnings is $5.36 per share, reflecting a 9.6% growth from the prior-year quarter, with revenue expectations at $1.52 billion, indicating a 4.9% increase year-over-year [2] - The model predicts total U.S. store revenues to grow 3.3% to $485 million, while supply-chain revenues are expected to rise 6.4% to $931.8 million, and international franchise royalties and fees are projected to increase 5.8% to $104.1 million [5] Group 2: Factors Influencing Performance - Anticipated revenue growth is attributed to strong performance at existing stores, value-focused promotions, menu innovation, and expansion of locations, alongside gains from aggregators and improved digital platforms [3] - The Domino's Rewards program is crucial for customer engagement and repeat purchases in the U.S., with international operations, particularly in India and China, also contributing positively [4] Group 3: Challenges and Margin Outlook - Inflationary pressures in commodity and labor costs, along with a challenging macro environment, are expected to negatively impact performance, with gross margin projected at 38.7%, down from 39.2% in the previous year [6][9] Group 4: Earnings Prediction Model - The Zacks model indicates a likelihood of an earnings beat for Domino's, supported by a positive Earnings ESP of +2.88% and a Zacks Rank of 3 (Hold) [8][10]

Wingstop shares jumped after the fast-casual chain topped profit expectations, even as domestic same-store sales declined and revenue missed forecasts. ...

Financial Data and Key Metrics Changes - In Q4 2025, system-wide sales increased to $1.3 billion, approximately 9.3% compared to 2024, driven primarily by 124 net new restaurants, despite a decline of 5.8% in domestic same-store sales due to macro pressures on core consumers [28][29] - Adjusted EBITDA in Q4 increased approximately 10% versus 2024 to $61.9 million, highlighting the durability of the company's model [32] - The company-owned same-store sales increased by 1.6% in Q4, showcasing the effectiveness of new operational standards [30] Business Line Data and Key Metrics Changes - The company opened 493 restaurants globally in 2025, a significant achievement against the long-term goal of 10,000 restaurants [20] - Royalty revenue, franchise fees, and other revenue increased by 8% year-over-year to a total of $81.9 million, reflecting the acceleration in unit growth [29] - Company cost of sales in Q4 were 75.6%, an improvement of 200 basis points compared to 2024, benefiting from lower wing costs [31] Market Data and Key Metrics Changes - The company expanded into six new international markets and opened over 100 restaurants outside the U.S. in 2025, marking a significant milestone for the brand [22] - The company anticipates global unit growth to be between 15% and 16% in 2026, driven by broad-based demand across brand partners [36] Company Strategy and Development Direction - The company aims to scale to over 10,000 restaurants globally, with a focus on unit economics and brand partner profitability [5][7] - The rollout of the Wingstop Smart Kitchen is central to the strategy, enhancing operational efficiency and customer experience [9][10] - The company is launching a loyalty program, Club Wingstop, to deepen engagement and enhance customer retention [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current operating environment remains challenging, but expresses confidence in the strategies in place to return to same-store sales growth [35] - The company expects to see sequential improvement throughout 2026 as operational strategies are executed [43] - Management highlighted the importance of maintaining a focus on execution and delivering consistent service standards [55] Other Important Information - The company returned over $250 million of capital to shareholders in 2025 through dividends and share repurchases [33] - The board of directors declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million [34] - The company has implemented a new leadership structure to enhance operational consistency and accountability [26] Q&A Session Summary Question: Signs of improvement in same-store sales - Management noted that trends have stabilized and they anticipate sequential improvement as strategies come together, despite some impact from winter storms [42] Question: Percentage of restaurants achieving 10-minute ticket time - Approximately 50% of restaurants are currently hitting the 10-minute service time, with ongoing initiatives to improve this metric [48] Question: Long-term guidance for same-store sales - Management remains focused on execution and believes that the combination of operational improvements and the loyalty program will drive growth [55] Question: Impact of Smart Kitchen on staff productivity - The new kitchen operating platform has led to lower turnover rates and improved staff engagement, indicating a positive impact on labor productivity [61] Question: Performance of the new advertising campaign - The "Wingstop Is Here" campaign is delivering record brand recall and has contributed to a 20% growth in the digital customer database [64]

Financial Data and Key Metrics Changes - In Q4 2025, system-wide sales increased to $1.3 billion, approximately 9.3% compared to 2024, driven primarily by 124 net new restaurants, despite a decline of 5.8% in domestic same-store sales [28][29] - Adjusted EBITDA in Q4 increased approximately 10% versus 2024 to $61.9 million, highlighting the durability of the company's model [32] - The company-owned same-store sales increased 1.6% in Q4, showcasing the performance of corporate restaurants compared to the broader system [30] Business Line Data and Key Metrics Changes - The company opened 493 restaurants globally in 2025, a significant achievement against the long-term opportunity of 10,000 restaurants [20] - Royalty revenue, franchise fees, and other revenue increased by 8% year-over-year to a total of $81.9 million [29] - Company cost of sales in Q4 were 75.6%, an improvement of 200 basis points versus 2024, benefiting from lower wing costs [31] Market Data and Key Metrics Changes - The company expanded into six new international markets and opened more than 100 restaurants outside the U.S. in 2025, marking a significant milestone for the brand [22] - The company anticipates global unit growth to be between 15% and 16% in 2026, driven by broad-based demand across its brand partner base [36] Company Strategy and Development Direction - The company aims to scale to over 10,000 restaurants globally, with a focus on unit economics and brand partner profitability [5][7] - The rollout of the Wingstop Smart Kitchen is central to the strategy, enhancing speed and consistency in service [9][10] - The company is launching a loyalty program, Club Wingstop, to deepen engagement and enhance customer retention [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current operating environment remains challenging, with continued pressure on core consumers, but expresses confidence in returning to same-store sales growth in 2026 [35] - The company is focused on executing strategies that will lead to improved performance, including the national launch of the loyalty program and enhanced marketing efforts [35][36] - Management highlights the importance of operational consistency and accountability as critical components for future growth [26] Other Important Information - The company returned over $250 million of capital to shareholders in 2025 through dividends and share repurchases [33] - The board of directors declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million [34] Q&A Session All Questions and Answers Question: Are there signs of improvement in the first quarter relative to the fourth quarter? - Management noted that trends have stabilized and they anticipate sequential improvement as they progress through the year, despite some impact from winter storms [42] Question: What percentage of the system is achieving the 10-minute ticket time consistently? - Approximately 50% of the restaurants are hitting the 10-minute service time, with ongoing initiatives to improve this further [48] Question: What indicators would lead to a downward adjustment of long-term guidance? - Management emphasized focusing on execution and the upcoming loyalty program launch as key factors that will drive business growth [55] Question: How is the Smart Kitchen impacting staff and labor productivity? - The new kitchen operating platform has led to lower turnover rates and improved staff engagement, making it easier for team members to perform their roles [61] Question: What is the strategy regarding value offerings in 2026? - Management indicated a focus on delivering a total guest experience that includes quality, speed, and price, with potential targeted value offerings for specific dayparts [75]

Financial Data and Key Metrics Changes - In Q4 2025, system-wide sales increased to $1.3 billion, approximately 9.3% compared to 2024, driven by 124 net new restaurants, despite a decline of 5.8% in domestic same-store sales [26][27] - Adjusted EBITDA in Q4 increased approximately 10% versus 2024 to $61.9 million, highlighting the durability of the company's model [30] - The company-owned same-store sales increased by 1.6% in Q4, showcasing the effectiveness of new operational standards [27] Business Line Data and Key Metrics Changes - The company opened 493 restaurants globally in 2025, a significant achievement against the long-term goal of 10,000 restaurants [18] - Royalty revenue, franchise fees, and other revenue increased by 8% year-over-year to a total of $81.9 million [26] - Company cost of sales in Q4 were 75.6%, an improvement of 200 basis points compared to 2024, indicating strong unit-level economics [28] Market Data and Key Metrics Changes - The company expanded into six new international markets in 2025, opening over 100 restaurants outside the U.S. [19] - The average unit volume (AUV) for domestic restaurants is at $2 million, with a target of reaching $3 million AUVs [5][31] - The company anticipates global unit growth to be between 15% and 16% in 2026, driven by broad-based demand across brand partners [34] Company Strategy and Development Direction - The company aims to leverage the Wingstop Smart Kitchen to enhance operational efficiency and customer experience, with a focus on achieving a consistent 10-minute speed of service [6][9] - The launch of the loyalty program, Club Wingstop, is expected to deepen customer engagement and increase visit frequency [16][17] - The company is focused on expanding brand awareness and capturing a larger share of the off-premise dining market, currently estimated at only 2% [7][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic pressures affecting core consumers but remains optimistic about returning to same-store sales growth in 2026 [33][36] - The company is confident in its strategies, including the rollout of the Smart Kitchen and the national launch of the loyalty program, to drive future growth [36][34] - Management highlighted the importance of operational consistency and accountability as critical components for success in the upcoming year [24][22] Other Important Information - The company returned over $250 million to shareholders in 2025 through dividends and share repurchases [31][32] - The board of directors declared a quarterly dividend of $0.30 per share, totaling approximately $8.3 million [32] - The company has a digital database of over 60 million users, providing a strong foundation for the loyalty program [17] Q&A Session Summary Question: Signs of improvement in comps for Q1 - Management noted that trends have stabilized and they anticipate sequential improvement as strategies come together, despite some impact from winter storms [39][40] Question: Percentage of system achieving 10-minute ticket time - Approximately 50% of restaurants are currently achieving the 10-minute service time, with ongoing initiatives to improve this metric [44][46] Question: Long-term guidance and potential adjustments - Management remains focused on execution and believes that the combination of operational improvements and the loyalty program will drive growth, maintaining their long-term guidance [50][51] Question: Impact of Smart Kitchen on staff and labor productivity - The Smart Kitchen has led to lower turnover rates in corporate restaurants, indicating a positive impact on staff experience and productivity [56][58] Question: Performance of the new advertising campaign - The "Wingstop Is Here" campaign is delivering record brand recall and has contributed to a 20% growth in the digital customer database [60][63]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

For the full year, domestic SSS declined 3.3%, and average unit volumes fell from $2,138,000 to $2,000,000. This deterioration raises questions about franchisee unit economics, though management's guidance for flat to low-single digit domestic SSS growth in fiscal 2026 suggests expectations for stabilization.The most striking development was the 5.8% decline in domestic same-store sales, a sharp reversal from the 10.1% growth posted in Q4 2024. This 15.9 percentage point swing signals weakening consumer tra ...

Core Insights - Wendy's stock has shown exceptional strength despite recent challenges, with shares rallying after a period of decline [1] Group 1: Financial Performance - Wendy's shares fell to a new 52-week low due to disappointing 2026 guidance, which included a projected adjusted EPS of 56 to 60 cents, significantly below the Street consensus of 86 cents [2] - The company reported double-digit declines in U.S. same-restaurant sales and shrinking margins, leading to multiple price target cuts from analysts [2] Group 2: Strategic Moves - Trian Partners has indicated the potential for strategic moves, including acquisitions or other extraordinary transactions that could lead to control of the company and possibly a de-listing of shares [3] - Trian has engaged with financing sources and potential partners under confidentiality agreements to explore these options [3] Group 3: Market Reactions - Despite the recent downturn, the language describing the stock as "undervalued" has sparked interest from bargain hunters and likely some short-covering after the stock hit multi-year lows [4] - Analysts have adjusted their price targets, with the average target now at $8.75, and recent actions include a 15.57% increase in Wendy's shares, reaching $8.09 [5]

Core Insights - Wendy's is experiencing significant challenges, including a decline in same-store sales by over 11% as consumers shift to other dining options amid persistent inflation [3][4] - The company is initiating a "rebuilding year" in 2026 as part of its Project Fresh turnaround strategy, aiming to refocus on providing value to customers [3][4] - Wendy's stock has fallen nearly 7% recently and is down about 14% year-to-date, indicating investor concerns about its current performance [4] Sales Performance - Same-store sales for Wendy's have decreased by over 11%, reflecting a broader trend of consumers feeling financial pressure [3] - In contrast, McDonald's reported a nearly 7% increase in same-store sales during the fourth quarter, highlighting the competitive disadvantage Wendy's faces [5] Strategic Direction - CEO Ken Cook acknowledged that the company had previously focused too much on limited-time price promotions rather than everyday value, which may have contributed to the sales decline [4] - Wendy's plans to implement a value menu in an attempt to attract customers back from competitors like McDonald's, although the effectiveness of this strategy remains uncertain [6]