CMG New Products
We are SHORT CMG.
Critical to keeping the CMG bull thesis alive is the company's new product strategy.
This week, Indianapolis is getting a peek at a potential new steak flavor at Chipotle Mexican Grill restaurants. The company Tuesday begins testing Garlic Guajillo Steak — steak seasoned with garlic and guajillo peppers, grilled in small batches, cut into bites, and finished with fresh lime and cilantro. Indy is one of three markets — Denver and Orange Country, California, where Chipotle is based — seeing the limited-time test.
How many different versions of steak and chicken can the company cook on its grill before things get complicated in the back of the house?
Restaurant Brands
We are SHORT QSR, as BUrger King remains a challenged brand for the company.
Restaurant Brands (QSR) beat estimates with its 1Q22 earnings report. Total revenue was up 15% to $1.45B. The company reported global comparable sales growth of 8.4% for Tim Hortons Canada, 10.3% for Burger King, and -3.0% for Popeyes. Unit growth was 6.7% for Tim Hortons, 3.1% for Burger King, and 7.9% for Popeyes. 1Q22 net income of $270M or $0.59 per share vs. $270M or $0.58 per share a year ago. Adjusted EBITDA came in at $530M vs. $480M a year ago. CEO Jose Cil, update - "We believe we're well-positioned to continue our momentum from the first quarter, with experienced leaders guiding our brands and collaborating with our amazing franchisee networks to grow all four of our brands over the long-term." The company will host a Tim Hortons Canada Investor Day event. The event will allow investors to hear the Tim Hortons Canada leadership team discuss the brand's business strategy and growth in detail. Revenue - Company sales $609M vs FactSet $572.8M; Franchise and property $605M vs FS $655.5M; Advertising revenue $227M vs FS $231.3M; Adjusted EBITDA margin 36.5% vs FS 38.0% and year-ago 38.1%.
Digital/Delivery is now a drag on SSS.
In 1Q211, GRUB volumes declined by 5%, DPZ delivery declined 10%, and CMG digital sales declined 4%.
Delivery is only 20% of restaurant sales.
