Markets

Restaurant Stock Q3 Earnings Due on Oct 29: TXRH, WING & More

We are in the thick of the Q3 earnings season, which so far looks impressive. Per the latest Earnings Preview , out of the 139 S&P 500 companies that have come up with their financial numbers, 82% outpaced earnings estimates and 62.6% exceeded top-line expectations. Also, total earnings of these companies increased 22% from the same period last year on 8.7% higher revenues.

According to the report, total earnings for S&P 500 companies are expected to increase 20% year over year, with revenues likely to be up 7.2%. Among the 16 Zacks sectors that have the most significant impact on the S&P 500 index, 14 sectors including Basic Materials, Finance, Technology, Aerospace, Industrial Products, Retail/Wholesale, Construction and Oil/Energy are anticipated to perform impressively in the current reporting cycle.

Earnings of the Retail/Wholesale sector are expected to be up 15.4%. Revenues are projected to increase 6.2%. Margins of the sector are likely to expand 0.4%.

What Lies Ahead for the Restaurant Industry?

Of late, the restaurant industry has been witnessing a series of changes. Evidently, restaurant operators are continuously trying to strategize and retain their competitive positions, and are partnering with delivery channels and digital platforms to drive incremental sales. Further, with the growing clout of Internet, digital innovations have become the need of the hour.

Though these strategic efforts will help rev up sales, margins will continue to be under pressure due to high operating costs. Additionally, sales-building efforts such as promotional activities and a convincing pricing strategy might dent the industry operators' margins. The industry has also been struggling with lower foot traffic.

Stocks Expected to Report Earnings on Oct 29

Texas Roadhouse, Inc.TXRH will report third-quarter 2018 earnings after the closing bell. In second-quarter 2018, the company's earnings missed the Zacks Consensus Estimate by 7.5%.

According to our proven model, Texas Roadhouse is likely to beat estimates this quarter. That is because the stock has the right combination of two key ingredients - a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Texas Roadhouse has an Earnings ESP of +4.70% and a Zacks Rank #3, making us reasonably confident of an earnings beat. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Texas Roadhouse, Inc. Price and Consensus

Texas Roadhouse, Inc. Price and Consensus | Texas Roadhouse, Inc. Quote

Wingstop Inc.WING will report third-quarter 2018 earnings after the closing bell. In the last reported quarter, the company's earnings surpassed the consensus estimate by 9.5%. Notably, it surpassed estimates in the trailing four quarters at an average of 13.5%. Wingstop has an Earnings ESP of +4.48% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter earnings is pegged at 19 cents.

Wingstop Inc. Price and Consensus

Wingstop Inc. Price and Consensus | Wingstop Inc. Quote

Bloomin' Brands, Inc.BLMN is scheduled to report third-quarter 2018 results before the opening bell. In second-quarter 2018, the company's earnings surpassed the Zacks Consensus Estimate by 26.7%. Bloomin' Brands has an Earnings ESP of +10.53% and a Zacks Rank #3, making us reasonably confident of an earnings beat.

Bloomin' Brands, Inc. Price and Consensus

Bloomin' Brands, Inc. Price and Consensus | Bloomin' Brands, Inc. Quote

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wingstop Inc. (WING): Free Stock Analysis Report

Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report

Texas Roadhouse, Inc. (TXRH): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TXRHBLMNWING

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More