Core Viewpoint - The market anticipates Shake Shack (SHAK) will report a year-over-year increase in earnings and revenues for the quarter ended December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Shake Shack is expected to post quarterly earnings of $0.36 per share, reflecting a year-over-year increase of +38.5% [3]. - Revenues are projected to reach $402.42 million, which is a 22.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 14.64% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Shake Shack is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.74% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Shake Shack currently holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Shake Shack exceeded the expected earnings of $0.31 per share, achieving $0.36, resulting in a surprise of +16.13% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - Dine Brands (DIN), another player in the restaurant industry, is expected to report earnings of $1.1 per share for the same quarter, indicating a year-over-year change of +26.4% [18]. - Dine Brands' revenues are expected to be $227.8 million, up 11.3% from the previous year, but it has a negative Earnings ESP of -5.94% and a Zacks Rank of 4 [19][20].

Core Viewpoint - Wendy's fourth quarter same-store sales fell by 11.3%, raising concerns about the company's performance, particularly highlighted by its largest shareholder, Nelson Peltz [1] Group 1: Shareholder Insights - Nelson Peltz believes Wendy's stock is undervalued, with the share price dropping to approximately $6.75 after a disappointing earnings report but rebounding to over $8 following his filing [2] - Wendy's stock has decreased nearly 50% over the past year, indicating significant volatility and investor concern [2] Group 2: Strategic Considerations - Peltz is exploring options to enhance shareholder value, which may include acquiring more shares to gain control or selling part of his stake [3] - Trian Fund Management is actively engaging with Wendy's board and management to discuss potential strategic transactions [3] Group 3: Historical Context - Trian Fund Management first invested in Wendy's in 2005, influencing key changes such as the spinoff of Tim Hortons in 2006 and acquiring Wendy's in an all-stock deal in 2008 [4] - Following the sale of Arby's in 2011, Wendy's saw significant growth, more than doubling its market value from 2010 to 2020, and became the second largest quick-service burger chain in the U.S. by 2012 [5] Group 4: Ownership Changes - Peltz reduced his holdings in Wendy's from about 25% to between 17% and 19.6% in 2015, and in 2022, he urged the company to increase its dividend and reorganize its corporate structure [6] - In 2024, after nearly two decades of influence, Peltz stepped down as chair but retains a significant ownership stake of approximately 16% [6]

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]

Core Viewpoint - Jack In The Box Inc. is facing significant financial challenges, with expected declines in both earnings and revenue for Q1 2026 compared to the previous year [2][3]. Financial Performance - The company is projected to report earnings per share (EPS) of $1.10 for the quarter ending December 2025, which is a 31% decrease from the previous year's EPS of $1.16 [2]. - Revenue projections for JACK are approximately $343.87 million, reflecting a 26.7% decrease compared to the same quarter last year [3]. - The previous quarter reported revenue of $326.19 million, which was slightly above analyst estimates but still indicates a challenging financial environment [3]. Financial Metrics - JACK has a negative price-to-earnings (P/E) ratio of -4.90, indicating negative earnings [4]. - The price-to-sales ratio is 0.27, suggesting the stock is valued at 27 cents for every dollar of sales [4]. - The debt-to-equity ratio is -3.33, indicating a higher level of debt compared to equity, which may pose financial challenges [4]. Market Expectations - The upcoming earnings report and management's discussion during the earnings call will be crucial for determining JACK's near-term stock price movement [5]. - Surpassing expectations could lead to a stock price increase, while failing to meet estimates might result in a decline [5].

Core Insights - Steak 'n Shake, owned by Biglari Holdings, reported a significant increase in same-store sales following the acceptance of Bitcoin payments, highlighting the "transformative power" of Bitcoin in enhancing business performance [1][2]. Group 1: Sales Performance - The fast food chain noted that its same-store sales have risen dramatically since the launch of Bitcoin payments nine months ago [2]. - The integration of Bitcoin into operations has been a key factor in driving sales growth [2]. Group 2: Employee Incentives - All Bitcoin sales are directed into a Strategic Bitcoin Reserve, which is utilized to fund employee bonuses [3]. - The company has introduced a BTC bonus for hourly employees at company-operated restaurants, which can be collected after a two-year vesting period [3]. Group 3: Market Performance - As of the latest data, Bitcoin was trading at $88,811.53, reflecting a slight increase of 0.12% over the last 24 hours [4]. - Biglari Holdings' shares closed at $396.75, down 0.48% on the previous trading day, but have increased by 19.35% year-to-date, indicating a strong price trend [4].

Core Insights - Wendy's is planning to close approximately 5% to 6% of its US restaurants, translating to about 240 to 360 locations, following an 11.3% sales decline in its home market [1][10] - The company reported a 10% drop in global comparable sales for the fourth quarter, with the US market experiencing the largest decline [2][10] - Adjusted EBITDA for the fourth quarter was $113.3 million, slightly exceeding analyst expectations, while adjusted earnings per share were 16 cents, beating forecasts [4][5] Financial Performance - Revenue for the fourth quarter was $540.75 million, aligning closely with forecasts [5] - For the full year, Wendy's reported adjusted EBITDA of $522.4 million and adjusted earnings of 88 cents per share [5] - The company projected 2026 adjusted EBITDA between $460 million to $480 million and adjusted EPS of 56 cents to 60 cents, significantly below analyst expectations of about 86 cents per share [6] Market Reaction - Wendy's shares fell sharply in premarket trading due to the weak earnings outlook and restaurant closures [4][6] - By early Friday afternoon, shares rebounded by 3.65% to $7.54 after trading within a range of $7.08 to $7.93 [7] Strategic Decisions - The company emphasized a strategy of system optimization to enhance franchisee economics and customer experience [7] - Closing underperforming restaurants is aimed at allowing franchisees to focus on locations with greater potential for profitable growth [8] Customer Sentiment - Customers have expressed dissatisfaction with rising prices and perceived declines in food quality, leading to a decrease in visits to Wendy's [12][13] - Complaints include shrinking portion sizes and changes in ingredients, which have contributed to a loss of customer loyalty [12][13]

Core Viewpoint - Wendy's is experiencing significant declines in sales, leading to a drop in stock prices toward a 13-year low, despite beating quarterly earnings expectations [1] Sales Performance - A key sales metric indicating traffic to existing restaurants fell more than anticipated, marking the largest decline in over five years for both global and U.S. locations [1] - This decline contrasts sharply with McDonald's, which reported its fastest sales growth in over two years [1]

Company Performance - Cisco Systems (CSCO) stock fell over 7% due to a gloomy profit outlook despite a rise in sales, with expectations of margin pressure from memory costs linked to AI datacenter spending [2][10] - Cisco raised its full-year earnings per share guidance to $3.00 to $3.08 on revenue of $61.2 billion to $61.7 billion, but this was below Wall Street's expectations of $3.12 on revenue of $62.1 billion [10][11] - McDonald's (MCD) shares nudged lower despite beating earnings expectations [5] - AppLovin (APP) shares fell 5% after its fourth-quarter earnings release, which beat Wall Street estimates, marking a nearly 30% decline over the past month [7] Market Trends - US stock futures rose approximately 0.3% as investors assessed earnings and anticipated Friday's inflation reading, which could influence rate-cut expectations [1] - The upcoming Consumer Price Index report is being closely watched, as a softer reading may indicate easing price pressures while maintaining economic growth [3] - Jobless claims data is also in focus following a strong January jobs report, which showed the US economy added twice as many jobs as expected, complicating Federal Reserve policy expectations [4] Competitive Landscape - Micron (MU) stock rose 3% after the CEO addressed competition concerns in the memory chip market, particularly from Samsung Electronics, which is competing to supply AI chips to Nvidia [6]

Group 1 - The burger giant has seen improvements in customer traffic and sales due to a focus on affordability [1] - The company's strategy to enhance value offerings has positively impacted its performance metrics [1] - Increased customer engagement is attributed to promotional efforts aimed at budget-conscious consumers [1]

Financial Data and Key Metrics Changes - Total revenues decreased approximately 10% for the quarter to $32.7 million [14] - Net income to common shareholders for both the current quarter and the prior year quarter was $0.2 million or $0.02 per share [24] - Adjusted EBITDA was $1.3 million for both the first quarters of 2026 and 2025 [24] Business Line Data and Key Metrics Changes - Bad Daddy's total restaurant sales decreased $2.9 million to $23.2 million for the quarter, with same-store sales decreasing 1.2% [14][15] - Good Times total restaurant sales decreased approximately $0.7 million to $9.2 million for the quarter, with same-store sales decreasing 3.1% [19] Market Data and Key Metrics Changes - The average menu price during the quarter was 1.7% higher than Q1 2025 for Bad Daddy's [15] - Good Times' average menu price for the quarter was approximately 0.7% higher than the prior year quarter [19] Company Strategy and Development Direction - The company is focusing on paying down remaining debt as a priority, followed by building additional cash and resuming share repurchase [28] - The company plans to develop additional Bad Daddy's locations, being selective about site choices [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued improvement in sales trends at both brands, despite challenges from weather and market conditions [5][33] - The company is adapting its loyalty program to better understand guests and drive incremental traffic [10] Other Important Information - The company experienced significant weather impacts, losing 28 full restaurant operating days due to storms [6] - Labor costs decreased by 60 basis points compared to the prior year quarter, attributed to reduced incentive compensation [17] Q&A Session Summary Question: Plans for cash deployment after buying back franchises - Management's first priority is paying down remaining debt, followed by building cash and resuming share repurchase, with Bad Daddy's development as a third priority [28] Question: General feedback on company performance - Management received positive feedback on the turnaround efforts and expressed gratitude for the team's contributions [30]