APPB - Applebee's-APPB we would add to positions between $21-$22-
opinion @ RBCM steady - With more challenging comparisons over the next two qtrs, we expect revenue growth to moderate before re-accelerating into second half of 2005. We are maintaining 2004 eps estimate at $1.31, and increasing 2005 eps by .02c to $1.48 reflecting reflecting lower S&G and tax rates.
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Applebee's (APPB) Last Monday night, the casual restaurant operator reported December comps that were basically in line considering the holidays' calendar impact. System-wide, company-owned, and franchise same store sales were relatively flat to slightly higher, as compared to the Briefing.com consensus estimate calling for low single digit gains. The company explained that both Christmas Eve and Christmas Day (falling on a Friday and Saturday respectively) had a negative impact on sales of approximately 2%.
Applebee's also offered its updated guidance for 4Q04 (Dec) and FY04. The company said that Q4 EPS should rise 7% year/year, to approximately $0.29. This represents the mid-point of management's prior range and is also in line with the Reuters Estimates consensus. As for FY04, Applebee's indicated that EPS growth should be approximately 13%, to $1.31, as the company increased revenues by 11%. The opening of at least 100 new stores - for the 12th consecutive year - contributed to the top-line expansion.
The latter should also fuel growth in FY05, along with the opening of 125 additional stores
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