All articles tagged with #same store sales
Walmart reports nearly $3 billion in tariff refunds and uses part of the windfall to cut prices for shoppers facing inflation, boosting profit even as U.S. same-store sales rose only 2.6% in the quarter—the slowest in years. The outlook is tempered by higher fuel costs and new Medicare drug-pricing rules, with more than $2 billion in added fuel expenses anticipated this year amid competition from Target and Amazon.
Walmart posted roughly $187.9 billion in revenue and adjusted EPS of $0.81 for the quarter, beating estimates, but US same-store sales rose just 2.6% vs 3.7% expected (the slowest pace since Q4 2020). Traffic and basket sizes were weaker, while e-commerce grew 23% (US +24%). The company raised its full-year outlook and guided Q3 net sales up 3%–3.75% and FY2027 revenue up 4%–5% (with tariff refunds contributing to profit). Management attributed part of the softness to high fuel costs that prompted shoppers to make trade-offs. Walmart stock fell about 9% on the news.
Walmart topped quarterly revenue and earnings estimates, reporting about $187.9 billion in revenue and adjusted EPS of $0.81, but shares fell around 6% in premarket trading after U.S. same-store sales rose 2.6% vs. a 3.7% forecast. E-commerce growth was strong (about 23%), aided by promotions, while cheaper drug prices dampened health-related growth; excluding health & wellness, core merchandise growth was around 3.4%. The company raised its guidance: next quarter net sales up 3.0%–3.75%, fiscal 2027 revenue up 4%–5% with adjusted EPS of $2.80–$2.87. Tariff refunds could add roughly 0.5% of U.S. sales, a potential tailwind, and Walmart signaled it will continue price investments to counter inflation.
Target is set to report fiscal Q2 2026 results on Wednesday, with expected EPS of $2.33 and revenue of $26.14 billion, as CEO Michael Fiddelke presses a turnaround focused on inventory, merchandising and product selection. The stock is up over 55% this year despite cautious consumer spending. Last quarter produced the first positive same-store sales in five quarters (+5.6%) and higher full-year revenue guidance, though analysts remain skeptical awaiting durable growth into FY27. The company will hold an 8 a.m. ET conference call.
Wendy's is grappling with a turnaround, reporting 289 US restaurant closures in the first half and a 7% drop in US same-store sales in Q2. CEO Bob Wright says the chain will take a more targeted approach to closures to strengthen franchise health, amid ongoing leadership turnover and stiff competition from McDonald’s, Burger King, and others. Analysts expect a clearer plan and don’t foresee a meaningful turnaround before 2027, with the stock having fallen sharply over the past several years.
Burger King has overtaken Wendy's to become the No. 2 U.S. burger chain behind McDonald's as BK posts an 8.5% rise in domestic same-store sales in Q2 and Wendy's falls about 7%, marking six straight quarters of contraction for Wendy's. BK’s turnaround—renovated restaurants, stronger advertising, a revamped Whopper, and a Whopper quality guarantee—has helped win back customers, while Wendy’s leadership changes and higher costs weighed on traffic and franchise economics.
Wendy’s posted a weak Q2 with -7% same-store sales, -12.5% traffic, and 245 closures, prompting CEO Bob Wright to blame “quality degradation” from shaky execution. He says the brand’s value proposition and marketing have weakened and outlines steps to lift performance: improve menu quality and intrinsic value, deploy smarter promotions, fix operating execution (especially drive-thru and staffing), and reassess breakfast plans. He expects improvements to take time but believes actions are within the company’s control as it pursues targeted investments to revive traffic and the restaurant economics.
Sweetgreen cut its 2026 outlook after consumer concern about fresh produce amid the cyclospora outbreak, forecasting same-store-sales to fall 7%–8% (versus prior 2%–4%) and adjusted EBITDA to -$23 million to -$27 million. Shares dropped over 15% after hours. The outbreak has not linked Sweetgreen to contaminated iceberg lettuce, though broader demand for fresh salads has weakened across the restaurant sector; Taco Bell is the only major chain linked to the outbreak. The company also reported a weaker-than-expected Q2 result and noted that the pace of recovery remains uncertain.
Restaurant Brands International beat Q2 2026 earnings expectations with adjusted EPS of $1.07 on $2.52 billion in revenue, led by Burger King US same-store sales up 8.5% and international BK growth of 5.4%, while Popeyes US same-store sales fell 5.2% and Tim Hortons was flat in Canada; executives pointed to ongoing investments, renovations and menu/marketing improvements, with Popeyes expected to rebound in the second half, and shares moved lower as other chains lagged.
McDonald's posted slower growth in Q2, with global same-store sales up 1.3% (US +0.8%), revenue of about $7.1B and adjusted EPS of $3.32, missing some estimates. Growth cooled as budget-conscious consumers remained under strain, with traffic pressures and the lapse of the Minecraft offering weighing on results. The company also named Skye Anderson president of McDonald's USA, as Joe Erlinger departs after more than two decades. Shares are down roughly 13% this year, and analysts view the September investor meeting as pivotal for long‑term growth through asset investments and menu innovation.
Yum Brands posted a mixed Q2 2026: revenue of $2.17 billion and adjusted EPS of $1.62 (above expectations on EPS but below revenue consensus), net income $853 million, and 12% net revenue growth. Global same-store sales rose 3% (Taco Bell +7%, KFC +2%, Pizza Hut -1%). The results reflect performance before the cyclospora outbreak linked to Taco Bell lettuce, which has driven double-digit traffic declines and could threaten Yum’s growth engine; management did not provide full-year guidance. Yum also disclosed the planned sale of Pizza Hut and Yum China to LongRange Capital for $2.7 billion. The article notes broader industry softness and mentions Chipotle’s late July sales impact tied to lettuce concerns.
Chipotle Mexican Grill topped Q2 expectations with 2.2% same-store sales, $3.35 billion in revenue, and adjusted earnings of $0.33 per share, driven by menu innovations (Honey Chicken, Cilantro Lime Sauce), marketing, a loyalty program and increased transactions. Catering and build-your-own orders now account for about 2–3% of sales, with a national rollout planned for 2027. The company lifted its full-year guidance to low-single-digit same-store sales growth and projected mid-2% price increases in Q3 due to beef and freight costs offset by lower avocado/dairy costs. Chipotle emphasized it is not involved in the cyclospora outbreak, noting its lettuces are California-sourced, and cited AI and catering expansions as growth catalysts alongside plans to open 350–370 new restaurants in 2026.
Chipotle posted Q2 revenue of $3.35 billion and adjusted EPS of 33 cents (vs 32 cents expected), with net income of $403.5 million. Same-store sales rose 2.2% on a 1% increase in traffic and a 1.2% higher average check. The company raised its full-year same-store sales outlook to a low-single-digit gain for 2026, up from flat. Management cited menu innovation, Chipotle Rewards, stronger hospitality, and expanded group occasions as key growth drivers, and the company opened 100 new locations in the quarter. The stock rose about 6% in after-hours trading.
Starbucks beat estimates for Q3 with adjusted EPS of 85 cents and revenue of $9.32 billion, led by 7.9% global and 8.1% U.S. same-store sales; revenue dipped 1% due to selling its China stake as it forms a Boyu Capital JV. The company raised full-year guidance to $2.55–$2.65 per share and about 6% global SSS growth (US >6%), signaling stronger momentum under CEO Brian Niccol. The stock climbed more than 7% in after-hours trading.
Cracker Barrel said Julie Masino will step down as CEO next month with David Deno taking over on Aug. 10; Masino will remain as an advisor until Oct. 9. Her tenure included a controversial logo redesign and store remodels that spurred customer backlash and a decline in same-store sales, though recent quarters showed some improvement and the company sold Maple Street Biscuit Co.