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Showing posts with label McDonalds. Show all posts
Showing posts with label McDonalds. Show all posts
Tuesday, August 14, 2012
Investopedia: Middleby Not On The Value Menu
I've followed restaurant and food service equipment provider Middleby (Nasdaq:MIDD)
for a long time now, and the stock has never been what a value investor
would call "cheap." That's unfortunate, as this is an uncommonly
interesting growth story in a segment of the market where growth
investors don't often go shopping. While I would not chase this stock, I
would recommend that investors keep it on a watch list and take
advantage if and when a pullback comes around.
Please read more here:
http://stocks.investopedia.
Please read more here:
http://stocks.investopedia.
Thursday, March 8, 2012
Investopedia: Arcos Dorados Feels The Squeeze
After a big bounce early in 2012, investors are taking a step back and realizing that conditions in the emerging markets may not be as bad as feared, but they're not as good as hoped. As a direct play on consumer spending in Latin America and Brazil, Arcos Dorados (Nasdaq:ARCO) shows a lot of that push-pull dynamic. Although underlying growth is OK and growth potential is significant, investors have gotten spooked by slower sales growth and greater cost impacts than originally feared.
Squeezed at the End of the Year
Arcos Dorados had a challenging fourth quarter that came in a little short of initial expectations. Revenue rose more than 10% as reported (about 16% in constant currency), on a better than 11% same-store sales growth number.
Continue here for the full article:
http://stocks.investopedia.
Tuesday, February 14, 2012
Investopedia: Dunkin' Brands Definitely A Hot Cup Of Coffee
Quick service restaurants (QSRs) are hot today, but the stock of Dunkin' Brands (Nasdaq:DNKN) hasn't enjoyed as much of that love. While owners of McDonald's (NYSE:MCD), Yum! Brands (NYSE:YUM), Panera (Nasdaq:PNRA) and Starbucks (Nasdaq:SBUX) have all racked up double-digit gains over the past year, Dunkin' has been an under-performer.
The trouble for Dunkin' stock right now seems to be the trade-off between quality and value. There are a lot of things to like about the business model at Dunkin' Brands, but working off a demanding valuation may keep a lid on outperformance for a little while yet.
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The trouble for Dunkin' stock right now seems to be the trade-off between quality and value. There are a lot of things to like about the business model at Dunkin' Brands, but working off a demanding valuation may keep a lid on outperformance for a little while yet.
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http://stocks.investopedia.
Wednesday, November 9, 2011
Investopedia: Can Sysco Sidestep The Squeeze?
When it comes to food distributor Sysco (NYSE:SYY), there certainly can be too much of a good thing. A controlled rate of food inflation is not a bad thing for this company, but when inflation gets too high, even a company as well-managed as Sysco can find that passing through all of those costs is more than their model can sustain. It's hard to imagine how Sysco won't be fine for the long haul, but the company may find it hard to maintain margins, during this period of turbulent food prices and stretched consumers.
A Mediocre Start to the Year
Perhaps it's some testament to the quality and consistency of Sysco, that a couple pennies here or there have some analysts fretting about earnings quality, for this fiscal first quarter. At the top line, revenue growth of nearly 9% sounds pretty good, but that shine rubs off quickly. For starters, the company saw food inflation of over 7%, as well as kickers from acquisitions and foreign exchange. All in all, although the company reported that case volume rose more than 1%, underlying growth was actually ever so slightly negative for this quarter.
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A Mediocre Start to the Year
Perhaps it's some testament to the quality and consistency of Sysco, that a couple pennies here or there have some analysts fretting about earnings quality, for this fiscal first quarter. At the top line, revenue growth of nearly 9% sounds pretty good, but that shine rubs off quickly. For starters, the company saw food inflation of over 7%, as well as kickers from acquisitions and foreign exchange. All in all, although the company reported that case volume rose more than 1%, underlying growth was actually ever so slightly negative for this quarter.
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Friday, October 28, 2011
Investopedia: McDonald's Off The Dollar Menu
Combine a worldwide brand with solid execution, good growth, market share expansion, and a healthy dividend and it probably should be no great surprise that the stock is not cheap. Few companies are executing as well as McDonald's (NYSE: MCD) (let alone few restaurant companies), and the stock reflects this. While the company certainly has levers to pull for further growth and is a high-quality name, new investors may want to wait in the hope of a bargain before building a position here.
Juicy Third Quarter Growth
McDonald's did well for itself in the third quarter. Revenue rose 14% as reported, and 8% on a constant currency basis, as the company saw 5% worldwide comparable sales growth. Comparable store growth was good in the U.S. (helped by a strong September) and surprisingly strong in Europe. Results in Asia were a little disappointing, but still positive.
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Friday, September 23, 2011
FinancialEdge: Top Qualities Of An Effective CEO
With Apple's (Nasdaq:AAPL) near-legendary CEO Steve Jobs heading back to semi-retirement and Hewlett-Packard (NYSE:HPQ) recently changing the name on the door of the executive suite once again, the quality of executive management is a hot topic. Time and time again, the markets have proven that even companies in low-growth or commodity industries can offer winning stocks on the basis of exceptional management. Likewise, the markets have shown that few stocks can thrive for the long term with suboptimal leadership. (For some ways a CEO can help improve a company, check out Management Strategies From A Top CEO.)
Read the full piece here:
http://financialedge.investopedia.com/financial-edge/0911/Top-Qualities-Of-An-Effective-CEO.aspx#axzz1YOY6xEze
What, then, goes into making a CEO and how does he or she build value for shareholders?
The Traits of Highly Effective CEOs
Unfortunately, there are no objective quantifiable markers of a good CEO. Great CEOs have come from the Ivy League and from Nowhere State. Likewise, good CEOs have had deep backgrounds in a single industry or wide-ranging careers across many functions and sectors. Nevertheless, a few key traits seem to come up over and over again.
Read the full piece here:
http://financialedge.investopedia.com/financial-edge/0911/Top-Qualities-Of-An-Effective-CEO.aspx#axzz1YOY6xEze
Monday, September 5, 2011
FinancialEdge: 7 Companies Facing Retiring CEOs
Change is an inevitable part of life, but it can be particularly disruptive when it comes to company leadership. With a new CEO comes a new set of priorities, a new way of doing things and a new perspective on what the company needs to do to remain competitive in its industry. Not all CEO transitions are traumatic or even transformative, but there is always that risk. While investors have had reason to expect a change in the CEO office at Apple (Nasdaq:AAPL) for some time, these other companies are likely to face transitions of their own in the not-so-distant future.
1. Berkshire Hathaway
It is difficult to find a more obvious example of a company that is not only facing the likelihood of a near-term CEO change, but also one that will fundamentally impact how the business operates. The current CEO and chairman, Warren Buffett, has shifted his position on succession a few times over the years, and currently it is expected that the investment functions that garner so much attention will likely be split among multiple people. Though Berkshire has an excellent roster of operating units, a change in leadership here is going to significantly alter how business is done. At present, Berkshire Hathaway can do things quickly and effectively in large part because Warren Buffett is Warren Buffett - and a handshake deal with him goes a long way with most people.
Read the full column at the link below:
http://financialedge.investopedia.com/financial-edge/0911/7-Companies-Facing-Retiring-CEOs.aspx#axzz1X2whDx73
1. Berkshire Hathaway
It is difficult to find a more obvious example of a company that is not only facing the likelihood of a near-term CEO change, but also one that will fundamentally impact how the business operates. The current CEO and chairman, Warren Buffett, has shifted his position on succession a few times over the years, and currently it is expected that the investment functions that garner so much attention will likely be split among multiple people. Though Berkshire has an excellent roster of operating units, a change in leadership here is going to significantly alter how business is done. At present, Berkshire Hathaway can do things quickly and effectively in large part because Warren Buffett is Warren Buffett - and a handshake deal with him goes a long way with most people.
Read the full column at the link below:
http://financialedge.investopedia.com/financial-edge/0911/7-Companies-Facing-Retiring-CEOs.aspx#axzz1X2whDx73
Wednesday, August 3, 2011
Seeking Alpha: Arcos Dorados - When Quality Meets Scarcity
Investors who want to play the significant improvement in the quality of life and buying power of consumers in Latin America are not exactly spoiled for choice. With regulatory burdens and costs making U.S. listings increasingly seem like more bother than they're worth, there is only a scant handful of direct consumer plays for the region.
That scarcity value alone would make Arcos Dorados (ARCO) interesting. But given that this large McDonald's (MCD) franchisee also happens to be delivering very solid growth as well, it is worth a look from investors looking to play the emerging consumer trend in Latin America.
Slinging a Lot More Burgers South of the Border
Arcos Dorados saw revenue jump nearly 29% on a reported basis for the second quarter, or nearly 19% on a constant currency basis. Same-store sales chipped in 15% growth, as the company continues to benefit from traffic and ticket growth across its operating geography.
To read the full piece, click below:
Arcos Dorados: When Quality Meets Scarcity
That scarcity value alone would make Arcos Dorados (ARCO) interesting. But given that this large McDonald's (MCD) franchisee also happens to be delivering very solid growth as well, it is worth a look from investors looking to play the emerging consumer trend in Latin America.
Slinging a Lot More Burgers South of the Border
Arcos Dorados saw revenue jump nearly 29% on a reported basis for the second quarter, or nearly 19% on a constant currency basis. Same-store sales chipped in 15% growth, as the company continues to benefit from traffic and ticket growth across its operating geography.
To read the full piece, click below:
Arcos Dorados: When Quality Meets Scarcity
Monday, July 4, 2011
Investopedia: Can Darden Go 3 For 3?
Not many companies do one thing very well, and precious few manage to do two things well. So maybe it is a little bit greedy to look for Darden Restaurants (NYSE:DRI) to develop a third restaurant chain to match the performance of Olive Garden and Red Lobster. Still, greedy though it may be, Wall Street has a hard core addiction to growth and Darden is going to need to find some new lever of performance, be it a third leading concept or global expansion, or risk never seeing full fair value on the shares.
A Solid End to the Year
Darden did not post any major surprises for the fiscal fourth quarter. Sales rose a bit less than 7%, with same-store growth of just over 2% in its core restaurant group. Longhorn Steakhouse led the way with 6%, Red Lobster posted almost 4% same-store growth due in part to a promotion, and Olive Garden was a disappointment with flat same-store performance. Darden also reported better than 5% same-store growth from its specialty group (which includes Capital Grille, Bahama Breeze and Seasons 52).
Even though there is rampant talk everywhere about food cost inflation, Darden managed to maintain pretty healthy margins. Gross margin ticked up about 40 basis points, while adjusted operating income rose more 18% and operating margin increased by 60 basis points.
Read the full piece via the link below:
http://stocks.investopedia.
A Solid End to the Year
Darden did not post any major surprises for the fiscal fourth quarter. Sales rose a bit less than 7%, with same-store growth of just over 2% in its core restaurant group. Longhorn Steakhouse led the way with 6%, Red Lobster posted almost 4% same-store growth due in part to a promotion, and Olive Garden was a disappointment with flat same-store performance. Darden also reported better than 5% same-store growth from its specialty group (which includes Capital Grille, Bahama Breeze and Seasons 52).
Even though there is rampant talk everywhere about food cost inflation, Darden managed to maintain pretty healthy margins. Gross margin ticked up about 40 basis points, while adjusted operating income rose more 18% and operating margin increased by 60 basis points.
Read the full piece via the link below:
http://stocks.investopedia.
Monday, May 16, 2011
Investopedia: Waiting To Warm Up To Middleby
Foodservice equipment manufacturer Middleby (Nasdaq:MIDD) is following a time-tested strategy - bring innovation and consolidation to a fragmented and, in some ways, stagnant industry. At the same time, certain realities still apply to the company and the stock. Foremost among them is the fact that the capital equipment market for the foodservice industry is still challenging, and Middleby still competes against well-known and well-heeled competitors.
First Quarter Results Look Warm, Not Hot
Middleby's first quarter was not necessarily bad, but institutional investors will likely focus on the company's shortfall in revenue. While the company did report revenue growth of nearly 14%, the company still came in below the lowest published analyst estimate. Organic sales were up more than 7% for the period, with the commercial foodservice unit up nearly 9% and the more volatile food processing unit down about 3%.
Even if revenue was disappointing, the company did well on margins. Gross margin was nearly flat, though the company did mention pressures from higher material costs. Operating income rose 19%, and the company saw about 80 basis points of margin expansion, as flat general/administrative expenses helped offset higher sales expenses.
Read the full article here:
http://stocks.investopedia.
First Quarter Results Look Warm, Not Hot
Middleby's first quarter was not necessarily bad, but institutional investors will likely focus on the company's shortfall in revenue. While the company did report revenue growth of nearly 14%, the company still came in below the lowest published analyst estimate. Organic sales were up more than 7% for the period, with the commercial foodservice unit up nearly 9% and the more volatile food processing unit down about 3%.
Even if revenue was disappointing, the company did well on margins. Gross margin was nearly flat, though the company did mention pressures from higher material costs. Operating income rose 19%, and the company saw about 80 basis points of margin expansion, as flat general/administrative expenses helped offset higher sales expenses.
Read the full article here:
http://stocks.investopedia.
Wednesday, May 11, 2011
Investopedia: Sysco Humming Along
Food distributor Sysco (NYSE:SYY) is never flashy, but the company has an enviable track record of market share growth and consistent free cash flow growth. That makes it a staple name on lists of quality dividend growth stocks and conservative growth ideas. What's more, it is not a bad way to play what could prove to be many years of inflation pressure. (To help you build a dividend portfolio, read Build A Dividend Portfolio That Grows With You.)
Solid Third Quarter Performance
Sysco reported sales growth of just over 9% for its fiscal third quarter, quite a bit better than the consensus expectation of just under 6%. Growth was clearly fueled by food inflation of more than 5%; case volume growth was about 2% and real sales growth was just under 3%. That is relatively consistent with the customer traffic patterns being reported by major U.S. restaurant chains like McDonald's (NYSE:MCD) and Brinker (NYSE:EAT), so there is not much reason to think that Sysco is losing share.
For the full article, please click the link:
http://stocks.investopedia.
Solid Third Quarter Performance
Sysco reported sales growth of just over 9% for its fiscal third quarter, quite a bit better than the consensus expectation of just under 6%. Growth was clearly fueled by food inflation of more than 5%; case volume growth was about 2% and real sales growth was just under 3%. That is relatively consistent with the customer traffic patterns being reported by major U.S. restaurant chains like McDonald's (NYSE:MCD) and Brinker (NYSE:EAT), so there is not much reason to think that Sysco is losing share.
For the full article, please click the link:
http://stocks.investopedia.
Friday, April 8, 2011
Investopedia: Stocks With Dividends And Growth
Sometimes growth stocks and income-producing stocks are arrayed against each other as some sort of "bubblegum vs. potato chips" argument. In reality, though, investors can usually find a pretty healthy menu of choices among companies that not only return a meaningful dividend to shareholders, but also have growth prospects strong enough to drive future capital appreciation. Although an investor should always hold a diversified portfolio to minimize company-specific risks, a selection of these stocks could offer a bit of the best of both worlds.
Healthcare
Abbott Labs (NYSE:ABT) is a frequent-flier in articles about quality companies, dividend-paying companies, quality dividend-paying companies, consistent dividend-payers, and so on. Well, there's a good reason for that - Abbott is a legit star when it comes to sharing its success with its owners. On top of that, Abbott has an uncanny knack for finding breakaway winners just when analysts sour on the company's future growth prospects (first Humira, then drug-coated stents). Abbott does have some near-threats to its growth, but it would seem unwise to assume the worst for this proven healthcare giant. (For more, see Healthy Dividend-Growth Ideas In Healthcare.)
Finance
Given that it has been around so long, it may be hard to think of M&T Bank (NYSE:MTB) as a "growth" candidate. That said, the company still operates in only a relatively small geographic part of the company and there is certainly room to grow by acquisition and/or superior execution. This is a well-run bank that offers a solid dividend and above-average long-term growth prospects.
Please continue via the link below:
http://stocks.investopedia.
Healthcare
Abbott Labs (NYSE:ABT) is a frequent-flier in articles about quality companies, dividend-paying companies, quality dividend-paying companies, consistent dividend-payers, and so on. Well, there's a good reason for that - Abbott is a legit star when it comes to sharing its success with its owners. On top of that, Abbott has an uncanny knack for finding breakaway winners just when analysts sour on the company's future growth prospects (first Humira, then drug-coated stents). Abbott does have some near-threats to its growth, but it would seem unwise to assume the worst for this proven healthcare giant. (For more, see Healthy Dividend-Growth Ideas In Healthcare.)
Finance
Given that it has been around so long, it may be hard to think of M&T Bank (NYSE:MTB) as a "growth" candidate. That said, the company still operates in only a relatively small geographic part of the company and there is certainly room to grow by acquisition and/or superior execution. This is a well-run bank that offers a solid dividend and above-average long-term growth prospects.
Please continue via the link below:
http://stocks.investopedia.
Saturday, January 29, 2011
FinancialEdge: What Is Great Management Worth?
In some respects, corporate management seems to be a bit like the weather - everybody talks about it and everybody agrees it's important, but nobody can ever seem to quite figure it all out. More to the point, only a momentum investor or chartist would likely even try to claim that management does not matter when assessing a stock merit's. Yet even value hounds have a hard time assigning value to management, or even proposing how such a thing could be measured. (For more, see Putting Management Under The Microscope.)
Great Management Sees the Future
In 1998, Finland's Nokia (NYSE:NOK) was the world's largest cell phone maker and Apple (Nasdaq:AAPL) was struggling to right itself just over a year into Steve Jobs' return to the company. While Apple developed breakaway winners like the iPod and the iPhone, Nokia introduced lead balloons like the N-Gage. Worse still, Nokia seemed to make the decision to play it safe and follow the market instead of looking out ahead of the curve and anticipating what customers would want. As a result, while Nokia is still the largest phone company in the world, Apple has jumped ahead both in revenue and in how much investors will pay for that revenue (Apple is over nine times larger in terms of enterprise value).
This is relatively common occurrence in business, and a major axis around which management value revolves. It is incredibly difficult to succeed by forever playing catch-up or hoping to take an already proven idea and execute it just a little bit better. The CEOs of companies like Microsoft (Nasdaq:MSFT), Intel (Nasdaq:INTC), Wal-Mart (NYSE:WMT) and Nike (NYSE:NKE) saw a future that other CEOs could not see and they positioned their companies accordingly - building billions in shareholder value along the way.
Please continue on to the full column:
http://financialedge.investopedia.com/financial-edge/0111/What-Is-Great-Management-Worth.aspx
Great Management Sees the Future
In 1998, Finland's Nokia (NYSE:NOK) was the world's largest cell phone maker and Apple (Nasdaq:AAPL) was struggling to right itself just over a year into Steve Jobs' return to the company. While Apple developed breakaway winners like the iPod and the iPhone, Nokia introduced lead balloons like the N-Gage. Worse still, Nokia seemed to make the decision to play it safe and follow the market instead of looking out ahead of the curve and anticipating what customers would want. As a result, while Nokia is still the largest phone company in the world, Apple has jumped ahead both in revenue and in how much investors will pay for that revenue (Apple is over nine times larger in terms of enterprise value).
This is relatively common occurrence in business, and a major axis around which management value revolves. It is incredibly difficult to succeed by forever playing catch-up or hoping to take an already proven idea and execute it just a little bit better. The CEOs of companies like Microsoft (Nasdaq:MSFT), Intel (Nasdaq:INTC), Wal-Mart (NYSE:WMT) and Nike (NYSE:NKE) saw a future that other CEOs could not see and they positioned their companies accordingly - building billions in shareholder value along the way.
Please continue on to the full column:
http://financialedge.investopedia.com/financial-edge/0111/What-Is-Great-Management-Worth.aspx
Friday, November 12, 2010
Middleby Making The Right Kind of Smoke
Given that Middleby (Nasdaq:MIDD) is in the business of making commercial food service equipment, it is generally not good news for words like "smoking" or "on fire" to be attached to the company. Still, the company is making a rather impressive recovery from the worst of the recession and the nadir in restaurant equipment spending.
A Solid Third Quarter
Middleby reported that revenue rose more than 15% as reported, and nearly 12% on an organic basis. That was basically in line with estimates, though Middleby is not a particularly widely followed stock. Profitability was a bit soft; gross margin dropped about 50 basis points on higher steel costs, and operating income rose 14% despite close to $1 million in expenses tied to severance and reduction programs.
Please click the link below for the full article:
http://stocks.investopedia.
A Solid Third Quarter
Middleby reported that revenue rose more than 15% as reported, and nearly 12% on an organic basis. That was basically in line with estimates, though Middleby is not a particularly widely followed stock. Profitability was a bit soft; gross margin dropped about 50 basis points on higher steel costs, and operating income rose 14% despite close to $1 million in expenses tied to severance and reduction programs.
Please click the link below for the full article:
http://stocks.investopedia.
Monday, November 8, 2010
Sysco Still On Simmer
From an operational standpoint, the restaurant industry seems to be on the road to recovery. Companies like McDonald's (NYSE: MCD), Yum! Brands (NYSE: YUM) and Chipotle Mexican Grill (NYSE: CMG) are all seeing better traffic and lofty stock prices. The question, though, is whether food supply giant Sysco (NYSE: SYY) gets to share in the happy feelings.
A Dog's Breakfast In The First Quarter
Sysco's fiscal first quarter report does not really seem good enough for a company whose stock is near a 52-week high. Revenue rose more than 7% to $9.8 billion, and it did beat the consensus estimate, but the quality of the beat may be a worry to some. Food cost inflation was 3.3% in the quarter, and acquisitions and forex chipped in another 1.1% of the revenue growth. Volume growth, then, was on the order of 3% - not bad, but probably not enough to really get investors or analysts excited.
Please click below for the full article:
http://stocks.investopedia.
A Dog's Breakfast In The First Quarter
Sysco's fiscal first quarter report does not really seem good enough for a company whose stock is near a 52-week high. Revenue rose more than 7% to $9.8 billion, and it did beat the consensus estimate, but the quality of the beat may be a worry to some. Food cost inflation was 3.3% in the quarter, and acquisitions and forex chipped in another 1.1% of the revenue growth. Volume growth, then, was on the order of 3% - not bad, but probably not enough to really get investors or analysts excited.
Please click below for the full article:
http://stocks.investopedia.
Thursday, October 7, 2010
Yum! Brands Looking Pretty Tasty In China
How many investors have looked into Yum! Brands (NYSE:YUM) enough to know that it is so very close to being as much of an emerging markets play as an operator of quick service restaurants in developed countries? The story of how this company saw the growth potential of China and other markets long ago and positioned itself accordingly is a great story for another day, but for now the earnings at this global restaurant operator are what should be in focus.
The Quarter That Was
Overall sales climbed 3% for the third quarter, reaching almost $2.9 billion. Somewhat remarkably, China is now the largest revenue contributor to the firm - revenue from China rose 20% to about $1.2 billion, while U.S. revenue dropped 8% to $970 million. China's same-store sales grew 6%, and while this benefited from the company's involvement in an exposition, the overall momentum is simply stronger than that of rivals like McDonald's (NYSE:MCD). Elsewhere, the company saw international same-store sales growth of 1%, and similar 1% growth in the United States.
The complete article can be found by clicking on the link below:
http://stocks.investopedia.com/stock-analysis/2010/Yum-Brands-Looking-Pretty-Tasty-In-China-YUM-MCD-DPZ-PZZA-AFCE1007.aspx
The Quarter That Was
Overall sales climbed 3% for the third quarter, reaching almost $2.9 billion. Somewhat remarkably, China is now the largest revenue contributor to the firm - revenue from China rose 20% to about $1.2 billion, while U.S. revenue dropped 8% to $970 million. China's same-store sales grew 6%, and while this benefited from the company's involvement in an exposition, the overall momentum is simply stronger than that of rivals like McDonald's (NYSE:MCD). Elsewhere, the company saw international same-store sales growth of 1%, and similar 1% growth in the United States.
The complete article can be found by clicking on the link below:
http://stocks.investopedia.com/stock-analysis/2010/Yum-Brands-Looking-Pretty-Tasty-In-China-YUM-MCD-DPZ-PZZA-AFCE1007.aspx
Friday, September 3, 2010
Private Equity Has A Hankering For Fast Food
The long, strange story of Burger King (NYSE:BKC) is soon to take another twist. The world's #2 hamburger chain announced Thursday morning that it had accepted a long-rumored bid from 3G Capital that will give current Burger King shareholders $24 in cash per share.
What a Long, Strange Trip it has Been
BurFor a large international restaurant chain, Burger King has had some ups and downs on the ownership front. The company was privately-owned for about eight years before Pillsbury bought it. Pillsbury had difficulty running the company and it became part of Grand Metropolitan (now Diageo (NYSE:DEO)) in 1989, when Grand Metropolitan bought Pillsbury.
Diageo built on Pillsbury's legacy of poor management with even more poor management, but decided to sell the chain at the turn of the century. A group of three well-known investors (a unit of Goldman Sachs (NYSE:GS), Bain Capital, and TPG Capital) bought the company, actually ran it reasonably well by prior standards and then took the company public in 2006.
Click on the link below to read the full piece:
http://stocks.investopedia.
What a Long, Strange Trip it has Been
BurFor a large international restaurant chain, Burger King has had some ups and downs on the ownership front. The company was privately-owned for about eight years before Pillsbury bought it. Pillsbury had difficulty running the company and it became part of Grand Metropolitan (now Diageo (NYSE:DEO)) in 1989, when Grand Metropolitan bought Pillsbury.
Diageo built on Pillsbury's legacy of poor management with even more poor management, but decided to sell the chain at the turn of the century. A group of three well-known investors (a unit of Goldman Sachs (NYSE:GS), Bain Capital, and TPG Capital) bought the company, actually ran it reasonably well by prior standards and then took the company public in 2006.
Click on the link below to read the full piece:
http://stocks.investopedia.
Wednesday, August 18, 2010
Sysco Not Sizzling, Yet
A long history of quality operations can buy a company the benefit of the doubt, even when current earnings and growth are not all that exciting. Such was the case with food distribution giant Sysco (NYSE:SYY) for its fiscal fourth quarter. Results were not especially strong, but this is not a story about individual quarterly performance, and investors seem to be more interested in the long-term cash flow story.
The Quarter That Was
Reported revenue was up 13.9% in the fiscal fourth quarter, but that is something of a mirage. A significant chunk of that "growth" came from a calendar effect tied to an extra week in the quarter. Stripping that out, growth falls to 5.8%. But wait - there is more. Favorable foreign currency moves added another 1.3% to the growth rate, and food cost inflation was about 2.2%. Consequently, volume growth, arguably the best indication of "real" growth, was on the order of 2.3% for the fourth quarter.
To read the complete article, please go to:
http://stocks.investopedia.
The Quarter That Was
Reported revenue was up 13.9% in the fiscal fourth quarter, but that is something of a mirage. A significant chunk of that "growth" came from a calendar effect tied to an extra week in the quarter. Stripping that out, growth falls to 5.8%. But wait - there is more. Favorable foreign currency moves added another 1.3% to the growth rate, and food cost inflation was about 2.2%. Consequently, volume growth, arguably the best indication of "real" growth, was on the order of 2.3% for the fourth quarter.
To read the complete article, please go to:
http://stocks.investopedia.
Wednesday, June 30, 2010
The Next McDonald's
No matter how much nutritionists may hate it, fast food joints - called quick-service restaurants (QSR) in the industry lingo - are here to stay. With Americans still in mass-migration away from their kitchens and into the clutches of the "do it for me" food industry, dozens of chains are trying to lock in their own recipe for becoming the next McDonald's (NYSE: MCD). Should investors order up any of these aspirants?
Chipotle Mexican Grill - Spicy Growth, Hot Valuation
Chipotle Mexican Grill (NYSE: CMG) is less than 20 years old, but it has already made a splash in the QSR segment by capturing over one-third of the Mexican-themed segment. Chipotle boasts of fresh ingredients and the ability to customize any order to the diner's tastes (so long as it includes the ingredients they have on hand), and customers have responded in force.
For the complete column, please go to:
http://stocks.investopedia.
Chipotle Mexican Grill - Spicy Growth, Hot Valuation
Chipotle Mexican Grill (NYSE: CMG) is less than 20 years old, but it has already made a splash in the QSR segment by capturing over one-third of the Mexican-themed segment. Chipotle boasts of fresh ingredients and the ability to customize any order to the diner's tastes (so long as it includes the ingredients they have on hand), and customers have responded in force.
For the complete column, please go to:
http://stocks.investopedia.
Tuesday, June 15, 2010
FinancialEdge - Biggest Corporate Comebacks
With Apple (Nasdaq:AAPL) recently supplanting Microsoft (Nasdaq:MSFT) as the most valuable tech company in the world, there is no doubt that it is one of the most remarkable turnarounds in U.S. corporate history. From a foundering company teetering on the edge of irrelevance, Apple has become one of the most innovative consumer-focused technology companies.
Apple is not alone, though. Many other corporations have danced on the brink of collapse and found their way back. Here we take a look at some other well-known major companies that had their flirtations with trouble and came back stronger than ever.
To read the full piece, please click on the link below:
http://financialedge.investopedia.com/financial-edge/0610/Biggest-Corporate-Comebacks.aspx
Apple is not alone, though. Many other corporations have danced on the brink of collapse and found their way back. Here we take a look at some other well-known major companies that had their flirtations with trouble and came back stronger than ever.
To read the full piece, please click on the link below:
http://financialedge.investopedia.com/financial-edge/0610/Biggest-Corporate-Comebacks.aspx
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