Country Style Cooking Restaurant Chain Co., Ltd. (
reported second-quarter 2012 earnings (in USD) of 3 cents per
share, missing the Zacks Consensus Estimate of 6 cents. However,
earnings stood at RMB 0.18 per share, better than the year-ago loss
of RMB 0.14 per share.
COUNTRY STY-ADR (CCSC): Free Stock Analysis
YUM! BRANDS INC (YUM): Free Stock Analysis
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Total revenue increased 19.4% to RMB 279.7 million compared with
year-ago revenue of RMB 234.3 million. The increase was primarily
attributable to the development of new units in China. However,
revenue (in USD) stood at $44.0 million, missing the Zacks
Consensus Estimate of $46.0 million.
Comparable restaurant sales dipped 3.8% year over year due to same
store sales decrease in Chengdu market, partially offset by
increase in Chongqing market and other areas.
Restaurant-level operating margin increased 50 basis points (bps)
to 16.1%. The increase was attributable to the company's effective
cost control measures taken during the reported quarter. Income
from operations also jumped 77.0% to RMB 9.1 million in the
During the quarter, Country Style Cooking opened nine restaurants
and postponed the opening of four new restaurants. At the
quarter-end, the company had a total of 217 restaurants across 23
cities. It represents a net increase of five restaurants compared
to the year-ago quarter.
Country Style Cooking ended the quarter with cash and cash
equivalents of RMB 338.1 million and short- term investments worth
RMB 190.0 million.
For the third quarter of 2012, Country Style Cooking expects
revenues between RMB 315.0 million and RMB 325.0 million. The
company's expectation represents a year-over-year growth in the
range of 9% to 12%.
We remain cautious about the earnings growth in the upcoming
quarters considering the company's modest second-quarter results.
We also expect analysts to revise their estimates downward in the
coming days. Currently, the Zacks Consensus Estimate for 2012 and
2013 are pegged at 33 cents and 47 cents, respectively.
One of Country Style Cooking's peers -
Yum! Brands, Inc. (
- reported its second quarter 2012 adjusted earnings of 67 cents
per share, missing the Zacks Consensus Estimate by 3 cents. Country
Style Cooking currently carries a Zacks #4 Rank, implying a
short-term Sell rating. We also reiterate our long-term
Underperform recommendation on the stock.