We are hosting a live Q&A call today at 10 AM ET.
CLICK HERE for the live webcast and materials at the event's time.
We will explore the following topics:
- Recent trend changes in consumer spending.
- Discuss the pushback and feedback from our recent Black Book calls.
- Discuss the most common and noteworthy inbounds we have received in the past month.
- Revisit changes to our Position Monitors.
- Discuss our expectations for the Q2 earnings season.
- Provide updates on some of our best ideas.
We will also take live questions.
Please send us your questions ahead of time to .
YUM CHINA
Yum China (YUMC) commenced the construction of the Yum China Supply Chain Management Center in Shanghai's Jiading district, the largest greenfield supply chain center project. The site is scheduled for completion in 2024 and will serve as the headquarters of the company's supply chain operations. "As our supply chain capabilities continue to go from strength to strength, we believe it will better support more stores, channels, and products while helping to drive long-term growth," CEO Joey Wat. Besides supporting Yum China's restaurants in eastern China, the new facility will serve as a key integrated cold chain transit hub for the region. By March 2022, Yum China had 32 logistics centers serving over 12,000 restaurants covering 1,700 cities. Yum China plans to expand its logistics network to 45 to 50 logistics centers over the next five years. It also utilizes the extra capacity of its logistics facilities to provide one-stop, customized solutions to third parties.
DPZ Earnings
A non-event quarter from DPZ - not getting worse; not getting better
Domino's Pizza (DPZ): Q2 Non-GAAP EPS of $2.82 misses by $0.08; Revenue of $1.07B (+3.9% Y/Y) beats by $20M; Global retail sales growth (excluding foreign currency impact) of 1.5%. Global net store growth of 233; U.S. same store sales decline of 2.9% (a little better); International same store sales decline (excluding foreign currency impact) of 2.2% (a little worse).
Guidance:
- Food basket pricing increase +13-15% y/y vs prior guidance +10-12%
- The negative impact of changes in foreign currency exchange rates on royalty revenues vs. 2021 of $22.0 - $26.0M vs prior guidance $12.0 - $16.0M
- Reaffirms G&A expense $420.0 - $428.0M
- Reaffirms capital expenditures $120.0M vs FactSet $116.7M
