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Restaurant Stocks' Earnings on Aug 3: JACK, DIN, FRSH, BBRG

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We now have Q2 releases from 317 of the S&P 500 members (as of Jul 29). Though the earnings picture so far has been moderately encouraging, the overall scenario is far from being rosy. Per our latest earnings preview article, total S&P 500 earnings are expected to be down 3.4% owing to 0.4% lower revenues for the quarter.

Turning our focus to the restaurant stocks, we note that in spite of the high expectations for the group, most of the stocks reported below-par figures.

Major players in the space like McDonald's Corp. (MCD - Free Report) , Chipotle Mexican Grill, Inc. (CMG - Free Report) , Starbucks Corporation (SBUX - Free Report) , Dunkin' Brands Group, Inc. and others have struggled with the top line this earnings season.

A number of restaurant companies are set to report their quarterly numbers on Aug 3. Let’s take a look at what might be in store for them this quarter:

Jack in the Box Inc. (JACK - Free Report) posted a positive earnings surprise of 21.43% last quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 2.46%.

JACK IN THE BOX Price and EPS Surprise

JACK IN THE BOX Price and EPS Surprise | JACK IN THE BOX Quote

For third-quarter fiscal 2016, the company has an Earnings ESP of +1.15% and a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 87 cents.

Jack in the Box’s same-store sales have been consistently outperforming the industry average over the past several quarters. We expect the trend to continue in the to-be-reported quarter. Also, increased focus on catering should boost revenues (read more: Jack in the Box Q3 Earnings: A Beat in the Cards?).

CA-based restaurant operator DineEquity, Inc. (DIN - Free Report) recorded a negative earnings surprise of 5.95% last quarter. However, the company posted positive earnings surprises in three of the past four quarters, with an average beat of 4.37%.

DINEEQUITY INC Price and EPS Surprise

DINEEQUITY INC Price and EPS Surprise | DINEEQUITY INC Quote

The company has an Earnings ESP of -1.26% and a Zacks Rank #4 (Sell) for the second quarter of 2016. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.59.

Given the lack of adequate initiatives to boost sales, the company’s Applebee's Neighborhood Grill & Bar domestic system-wide comps in Q1 weren’t encouraging. We do not expect any significant improvement in Q2 as well (read more: Will DineEquity Let Down Investors in Q2 Earnings?).

Papa Murphy's Holdings, Inc. (FRSH - Free Report) registered a 69.23% negative earnings surprise in the previous quarter. In fact, the trailing four-quarter average earnings surprise stands at a negative 17.31%.

PAPA MURPHYS HL Price and EPS Surprise

PAPA MURPHYS HL Price and EPS Surprise | PAPA MURPHYS HL Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #4 for the second quarter of 2016. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 5 cents.

Bravo Brio Restaurant Group, Inc. posted in-line earnings in the preceding quarter. In fact, the company outpaced/met the Zacks Consensus estimate in all of the past four quarters, with an average beat of 15.26%.

BRAVO BRIO RSTR Price and EPS Surprise

BRAVO BRIO RSTR Price and EPS Surprise | BRAVO BRIO RSTR Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #4 for the second quarter of 2016. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 24 cents per share.

Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!

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