Restaurant Same-Store Sales Guidance Is Broadly Lower

Brett Levy, a restaurant analyst with Deutsche Bank, commented in a research note on Monday that the sales environment for the group remains "challenging," as evident by a notable number of companies that reported a lower than expected same-store sales growth in the second quarter.

Here is Levy's summary of companies that reported a softer than expected same-store sales and/or poor outlook.

• Jack in the Box Inc. (NASDAQ: JACK) lowered the top end of its outlook by around 50 basis points.
• Restaurant Brands International Inc (NYSE: QSR)'s second-quarter same-store sales print was 150-200 basis points below expectations at Burger King US and Tim Horton's Canada.
• Dunkin Brands Group Inc (NASDAQ: DNKN) reported a weaker-than-expected same store sales for both of its brands but did not adjust its full-year expectations.
• DineEquity Inc (NYSE: DIN) "meaningfully" lowered its bottom half 2016 same-store sales outlook for both IHOP and Applebee's.
• Cheesecake Factory Inc (NASDAQ: CAKE)'s reported same-store sales print was within management's target but its third quarter and full-year outlook fell short of consensus estimates and "modestly" lower than prior outlooks.
• BJ's Restaurants, Inc. (NASDAQ: BJRI)'s reported same-stores sales were "modestly" negative.

Related Link: Deutsche Bank's Q2 Report Cards For 10 Fast-Food/Fast-Casual Stocks

On the other hand, Levy highlighted Domino's Pizza, Inc. (NYSE: DPZ) and Papa John's Int'l, Inc. (NASDAQ: PZZA) as being part of the few restaurants that outperformed in the second quarter given their second-quarter same-store sales, which were ahead of consensus expectations.

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