RESTAURANT INSIGHTS | Knapp April, MCD Exits Russia, Insider buying (SBUX)

05/16/22 08:24AM EDT

RESTAURANT INSIGHTS | Knapp April, MCD Exits Russia, Insider buying (SBUX)  - 2022 05 16 6 29 59

CASUAL DINING SALES

APRIL 2022 ESTIMATES USING THE COMPARISON 2022 VS. 2020 (IN APRIL 2022 VS. 2021)

                   COMPARABLE SALES                COMPARABLE GUEST COUNTS

USA                          6.8%                                            0.7%         

CALIFORNIA          18.4%                                          10.9%                  

TEXAS                      1.6%                                          -4.1%

FLORIDA                   6.9%                                           0.8%

Notable in April was CA slowing from 40% in March to 18% in April

MCD Russia 

After a 30-year run, McDonald's Corporation plans to exit the Russian market after Ukraine's invasion.

MCD has initiated a process to sell its entire portfolio of Russian business to a local buyer following its announcement on March 8, 2022, to temporarily closed restaurants in Russia and pause operations in the market. The company expects to book a charge of approximately $1.2B-1.4B to write off its net investment in the market and recognize significant foreign currency translation losses previously recorded in shareholders' equity; It Expects operating margin to be in the 40% range as a result of the charge for Russia and adjusted operating margin to be in the mid-40% range; Net restaurant unit expansion will contribute about 1.5% to 2022 Systemwide sales growth in constant currencies; over 1,300 net restaurant additions in 2022; Capital expenditures to be approximate $2.1B to $2.3B.

SBUX Insider buying

SBUX is a SHORT, and Howard buying does not change that.  

It was a bit of good news for SBUX after it was disclosed that interim CEO Howard Schultz bought $10 million worth of stock this week.  According to a regulatory filing, Schultz purchased 137,500 shares on Tuesday in two transactions for prices of $72.61 and $73.10 a share. Schultz, the founder of Starbucks, returned as CEO for the third time early last month after former CEO Kevin Johnson announced his retirement in March. 

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.