The analyst explains that PNRA’s 2Q adjusted EPS of $1.78 was ahead of his estimates. Gonzales notes, “Company-owned same store sales (SSS) growth increased 4.2% (RBCe 3.75%; cons. 4.1%), likely implying a +490bp gap to the BlackBox All Industry Sales Growth Composite. Traffic growth was 0.4% while average check increased 3.8%. Franchised SSS growth of 0.6% fell below our 1.5% and cons. 2.2%. EPS upside versus our model was primarily the result of share repurchases totaling $75 million vs. our $50 million and cons. $40 million.”
The analyst also believes that there is a widening gap between company-owned and franchised SSS growth signals, and that investments are ultimately paying off.
According to TipRanks, Eric Gonzalez is ranked #2,681 of 4,083 analysts. He maintains a success rate of 50% and realizes an average return of 0.1%.