Einstein Noah Restaurant Group Earnings: Here’s Why the Stock is Rising Now

Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.60%.

Einstein Noah Restaurant Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.19 in the quarter versus EPS of $0.19 in the year-earlier quarter.

Revenue: Rose 1.71% to $107.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Einstein Noah Restaurant Group, Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company missed the mean analyst estimate of $0.19. It missed the average revenue estimate of $110.62 million.

Quoting Management: Jeff O’Neill, President and Chief Executive Officer, stated, “Comparable store sales rebounded in the second quarter with a 0.7% gain while transactions experienced their smallest decline since the first quarter of 2011 as our focus and transition to drive traffic through ‘everyday value’ and improved guest experience was initiated and has begun to take hold. This represents our eighth quarter out of the last nine quarters that we have achieved positive system-wide comparable store sales. With our in-store customer-centric strategy and local and national marketing support now firmly in place, we are poised to reap the benefits of these investments through the back half of the year and beyond with continued traction in both comparable store sales and transactions.”

Key Stats (on next page)…

Revenue increased 1.58% from $106.12 million in the previous quarter. EPS increased 35.71% from $0.14 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.22 to a profit $0.23. For the current year, the average estimate has moved down from a profit of $0.92 to a profit of $0.91 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)