Einstein Noah Restaurant Group
The 10-second takeaway
For the quarter ended Jan. 3 (Q4), Einstein Noah Restaurant Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins expanded.
Einstein Noah Restaurant Group reported revenue of $115.1 million. The seven analysts polled by S&P Capital IQ foresaw a top line of $116.9 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $106.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.39. The eight earnings estimates compiled by S&P Capital IQ predicted $0.34 per share on the same basis. GAAP EPS of $0.36 for Q4 were 71% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.8%, 930 basis points worse than the prior-year quarter. Operating margin was 9.6%, 10 basis points better than the prior-year quarter. Net margin was 5.3%, 210 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $105.3 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $438.2 million. The average EPS estimate is $0.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 94 members out of 112 rating the stock outperform, and 18 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Einstein Noah Restaurant Group a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Einstein Noah Restaurant Group is outperform, with an average price target of $18.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.