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Market Update

Burger King to Buy Popeyes; Home Depot and Wal-Mart Results Diverge


Author: Mukesh Buch
ticker.com
Last Update: 11:17 AM ET February 21 2017

2:10 PM New York Burger King agreed to acquire Popeyes for $1.8 billion Dillard''s net plunged 32%. Ecolab net surged 75%. Expeditors net fell 3%. Genuine Parts net dropped 6%. Home Depot lifted sales forecast. Macy''s net declined 13%. Wal-Mart net plunged 18%.

Tollbooth Index increased 26.21 or 0.2% to 11,702.27.

Earnings Review

Burger King, the hamburger fast food restaurants chain agreed to acquire Popeyes for $79 per share in cash or $1.8 billion, a premium of 27% on 30-trading day volume weighted average price as of February 10.

The transaction is expected to close by early April 2017.

Cracker Barrel Old Country Store, Inc (CBRL) slumped 3.1% or $5.30 to $163.29 after the restaurants operator said revenues in the second-quarter ending in December increased 1.1% from a year ago at $772.7 million.

Comparable store restaurant sales in the quarter increased 0.6% and the average menu price increase for the quarter was approximately 2.1%. Comparable store retail sales decreased 2.2% from the prior year quarter.

Net income in the quarter jumped 9% to $52.7 million or $2.19 per diluted share compared to $48.2 million or $2.01 per share in the same quarter last year.

The restaurants operator forecasted revenues in the year of about $2.95 billion and reaffirmed diluted earnings per share between $8.10 and $8.25.

Dillard''s, Inc (DDS) fell 1.2% or 69 cents to $57.71 after the apparel, cosmetics and home furnishing retailer stated revenues in the fourth-quarter ending in December slumped 9.5% from a year ago to $1.9 billion.

Net income in the quarter plunged 32.3% to $56.9 million or $1.72 per diluted share compared to $84 million or $2.31 per share in the same quarter last year.

Ecolab Inc (ECL) slid 24 cents to $123.71 after the water, hygiene and energy technology provider reported revenues in the fourth-quarter ending in December fell 2% from a year ago to $3.4 billion.

Net income in the quarter surged 75% to $366.3 million or $1.24 per diluted share compared to $208.9 million or 69 cents per share in the same quarter last year.

Ecolab estimated diluted earnings per share in fiscal 2017 in the range of $4.70 to $4.90, a growth between 8% and 12%.

Expeditors International of Washington (EXPD) fell 45 cents to $56.04 after the air freight and logistics services provider said revenues in the fourth-quarter ending in December increased 3% from a year ago at $1.6 billion.

Net income in the quarter fell 3% to $110.6 million compared to $114.4 million and diluted earnings per share were flat at 61 cents in the same quarter last year.

Genuine Parts Company (GPC) slumped 3.2% or $3.20 to $97.47 after the electrical and electronic part distributor stated revenues in the fourth-quarter ending in December grew 3% from a year ago to $3.8 billion.

Net income in the quarter dropped 5.5% to $152.5 million or $1.02 per diluted share compared to $161.3 million or $1.07 per share in the same quarter last year.

Genuine Parts forecasted revenues in the year to jump between 3% and 4% and diluted earnings per share in the range of $4.70 to $4.80.

Home Depot Inc (HD) increased $1.30 to $144.29 after the home improvement retailer reported revenues in the fourth-quarter ending in December jumped 5.8% from a year ago to $22.2 billion.

Comparable store sales in the quarter advanced 5.8% and comparable sales for the U.S. stores soared 6.3%.

Net income in the quarter soared 13.3% to $1.7 billion or $1.44 per diluted share compared to $1.5 billion or $1.17 per share in the same quarter last year.

The Home Depot forecasted sales and comparable store sales are estimated to grow 4.6%.

Macy''s Inc (M) rose 1.1% or 37 cents to $32.67 after the department stores operator said revenues in the fourth-quarter ending in December slumped 4% from a year ago to $8.5 billion.

Comparable store sales in the quarter dropped 2.7% and comparable store sales on owned plus licensed basis were slipped 2.1%.

Net income in the quarter declined 12.7% to $475 million or $1.54 per diluted share compared to $544 million or $1.73 per share in the same quarter last year.

Wal-Mart Stores Inc (WMT) jumped 3% or $2.10 to $71.47 after the supermarkets operator reported total revenues in the fourth-quarter ending in December rose 1% from a year ago to $130.9 billion.

U.S. comparable store sales in the quarter increased 1.8% and comparable store sales on owned plus licensed basis slipped 2.1%.

Net income in the quarter plunged 17.9% to $3.8 billion or $1.22 per diluted share compared to $4.6 billion or $1.43 per share in the same quarter last year.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc