Do Analysts Like Bojangles Following Its Q1 Print?

June 12, 2015 12:45 PM | 1 min read | Make a Comment
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Bojangles IncBOJA
reported its
first quarter results on Thursday after market close. Wells Fargo: Same-Store Sales Impressive Jeff Farmer of Wells Fargo commented in a note that Bojangles same-store sales gains of 7.9 percent was impressive despite being pre-released I early May. However, Farmer noted that despite the "modestly" better-than-expected profit flow-through on the same-store sales and "strong" fundamental momentum, shares are trading at a 15.9x 2016 estimated EBITDA, a 21 percent premium to the mean valuation of its closest peers. Farmer also stated that the company's lack of second quarter same-store sales guidance should be viewed as a "minor disappointment." On the other hand, the company disclosed that eggs represent only two percent of its commodity basket and cost pressures (due to Avian flu concerns) is expected to continue being "manageable." The analyst added that he is modelling the company's full year COGS to be 33.8 percent (110 basis points higher year over year) but did admit the estimate could prove conservative. Shares remain Market Perform rated with an unchanged valuation range of $25 to $27. Piper Jaffray: Look Elsewhere For Better Growth Nicolle Miller Regan of Piper Jaffray commented in a note that Bojangles' inaugural earnings report as a public company was "solid" and were generally in-line with expectations. Looking forward, Miller Regan commented that a steady 15 percent earnings per share growth is achievable given the company's "culture of operational excellence." However, the analyst stated that from the stock's perspective more upside exists elsewhere within her coverage. Shares remain Neutral rated with a $27 price target which is based on a 12x fiscal 2016E EBITDA multiple of the core business in addition to $10 per share in new unit pipeline value.
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Posted In: Analyst ColorAnalyst RatingsAvian FluBojanglesFood InflatuionJeff FarmerNicolle Miller ReganPiper JaffrayrestaurantsWells Fargo
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