Piper Jaffray Remains Sidelined on Popeyes Louisiana Kitchen (PLKI) Following In-Line 2Q
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Piper Jaffray maintained a Neutral rating and $56.00 price target on Popeyes Louisiana Kitchen (NASDAQ: PLKI) following the company's 2Q earnings report. EPS results of $0.47 were in-line with the consensus expectations. Total revenues increased 3.9% y/y to $61.7 million vs. Piper Jaffray's $61.8 million estimate. The company largely reiterated FY16 metrics including expectations for EPS of $2.10- $2.15 vs. current consensus estimates at $2.10.
Analyst Nicole Regan commented, "Popeyes Louisiana Kitchen delivered 2Q16 EPS results of $0.47, which was in-line with consensus expectations. Same-store sales came in flat domestically and +0.7% globally, which were below consensus expectations at +1.1% and +1.9%, respectively. The company largely reiterated 2016 guidance calling for EPS in the $2.10-$2.15 range although the expectation is for this to now be achieved on slightly lower global samestore sales of +1.0%-+2.0% (vs. +2.0%-+3.0% prior). We expect additional color on the assumptions backing this guidance with discussion around trends during 2Q16 on tomorrow's conference call. Our estimates and model are updated to reflect 2Q16 results and reiterated 2016 guidance but remain largely unchanged in aggregate. We are maintaining our Neutral rating and $56 price target based on ~15x our FY16E EV/EBITDA. On a sensitivity basis we note that each 1x turn in EBITDA multiple is worth ~$4/share."
Shares of Popeyes Louisiana Kitchen closed at $58.48 yesterday.
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