Investors can be slow to abandon their favorite growth stocks,
particularly when management has shown itself able to execute at a high
level. Couple that with a very strong sector and you have a good recipe
for Chipotle Mexican Grill (NYSE:CMG)
to perform. While the shares are still down almost 10% from their
year-ago level, they are up almost 60% from a late October bottom and
investors seem to be willing once again to just look past challenging
same-store traffic trends.
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Showing posts with label Panera. Show all posts
Showing posts with label Panera. Show all posts
Tuesday, May 14, 2013
Wednesday, March 27, 2013
Investopedia: Sonic Still In A Tricky Spot
Try as it might, drive-in quick service restaurant (QSR) Sonic (Nasdaq:SONC)
just can't seem to get everything working at top form in its business
model. While the company has an innovative (some might say “quirky”)
menu that really does stand out from the offerings at McDonald's (NYSE:MCD), Burger King (NYSE:BKW), and Wendy's (NYSE:WEN),
and has looked to refine its promotional activity and value-priced
offerings, the company has made only modest progress in terms of growth.
As it stands today, analyst expectations on Sonic are pretty bifurcated. There's a small group that believe that Sonic will regain its growth momentum and do significantly better from here, while the larger group is more pessimistic and calls for Sonic to basically bump along as it has for some time now. While these shares have been strong over the past year and have recently broken out to a multi-year high, further gains could well be in store if the optimists are right.
Read more here:
http://www.investopedia.com/stock-analysis/032713/sonic-still-tricky-spot-sonc-wen-jack-mcd-bkw-cmg-pnra.aspx
As it stands today, analyst expectations on Sonic are pretty bifurcated. There's a small group that believe that Sonic will regain its growth momentum and do significantly better from here, while the larger group is more pessimistic and calls for Sonic to basically bump along as it has for some time now. While these shares have been strong over the past year and have recently broken out to a multi-year high, further gains could well be in store if the optimists are right.
Read more here:
http://www.investopedia.com/stock-analysis/032713/sonic-still-tricky-spot-sonc-wen-jack-mcd-bkw-cmg-pnra.aspx
Friday, February 8, 2013
Investopedia: Chipotle Still Getting The Benefit Of The Doubt
Last year was a rough one for Chipotle Mexican Grill (NYSE:CMG). Once a nearly bulletproof growth story, a sharp slowdown in traffic and store comps
growth expectations took large chunks out of the stock on multiple
occasions. Investors are slow to abandon growth stories (at least
outside of tech), and these shares enjoyed a 30% rally to close out the
year. Consequently, it's not easy to make a value call on the shares
today, and investors should be wary of the expectations that traffic
growth will accelerate in the second half of the year.
Continue here:
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Continue here:
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Monday, July 23, 2012
Seeking Alpha: Is McDonald's Setting Up A 2008/2009 Rerun?
Companies like Nike (NKE), Coca-Cola (KO), and McDonald's (MCD)
don't give you too many chances to get in at reasonable valuations, and
oftentimes those opportunities come with substantial market worries.
While McDonald's present valuation doesn't exactly make it a screaming
buy, there are at least a couple of similarities between conditions
today and conditions three to four years ago - the period when
McDonald's really separated itself from the QSR pack and delivered quite
a run.
Please read the full article here:
Is McDonald's Setting Up A 2008/2009 Rerun?
Please read the full article here:
Is McDonald's Setting Up A 2008/2009 Rerun?
Friday, July 20, 2012
Investopedia: Street To Chipotle - Queremos More Growth, Now!
Figuring out the difference between a pot-hole and a sinkhole is a
pretty critical skill when it comes to investing in high-growth stocks,
and it seems especially relevant to Chipotle Mexican Grill (NYSE:CMG). Whether slower comps
later this year are just a lull or a new trend, and whether the company
can maintain exceptionally high restaurant margins are two huge
questions that play directly into the valuation. Given the high
valuation, I can understand if investors feel that caution is the better
part of valor and want to step to the side for the time being.
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Please follow this link for more:
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Tuesday, June 26, 2012
Investopedia: Sonic Not Breaking The Sound Barrier With Its Growth
Americans love to eat out and they seem to love store concepts that
offer a break from burger-world - witness the growth at concepts like Panera (Nasdaq:PNRA), Chipotle (NYSE:CMG) and Dunkin' Brands (Nasdaq:DNKN). Of course, that's not to say that burger-world is exactly suffering either; McDonald's (NYSE:MCD) has been remarkably and consistently strong and newer concepts like Five Guys are also doing well.
Sonic (Nasdaq:SONC) definitely offers a different concept with its drive-in store format and a menu that offers many foods and drinks that cannot be found at other national or regional QSR chains. So far, though, "different" hasn't really meant better, as Sonic has struggled to deliver really exciting growth over the years.
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Sonic (Nasdaq:SONC) definitely offers a different concept with its drive-in store format and a menu that offers many foods and drinks that cannot be found at other national or regional QSR chains. So far, though, "different" hasn't really meant better, as Sonic has struggled to deliver really exciting growth over the years.
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Thursday, May 3, 2012
Investopedia: Panera Well Off The Value Menu
The restaurant world is increasingly looking like a winner-takes-all
market, as nationwide quick service restaurants (QSR) batter
locally-owned rivals on price and marketing and the top QSR chains
further separate themselves from their rivals. As one of the "Big
Three," Panera Bread (Nasdaq:PNRA) is not only seeing strong store traffic growth, but excellent overall profitability.
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Click here for the full article:
http://stocks.investopedia.
Monday, April 9, 2012
Investopedia: Burger King Coming Back To The Market
Investors hankering to own a piece of Burger King apparently won't have to worry about a long wait. While this well-known fast food chain was taken private less than two years ago, it looks the company's current owners are going to pursuing a listing once again on the NYSE. Given the ongoing performance problems, though, investors may want to let others take the first bites.
A Quick Turnaround, Minus the Turnaround
Investors would do well to ask themselves why 3G Capital is in such a hurry to put Burger King back on the public market. After all, private equity investors aren't really known for being especially generous when it comes to sharing in the success of a really good idea. The company recently announced a merger with Justice Holdings (OTCBB:JSTUF), an investment vehicle co-founded by Bill Ackman and publicly listed in London. As part of the merger, 3G Capital gets $1.4 billion in cash and maintains its majority position, but will also list the combined company on the NYSE.
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A Quick Turnaround, Minus the Turnaround
Investors would do well to ask themselves why 3G Capital is in such a hurry to put Burger King back on the public market. After all, private equity investors aren't really known for being especially generous when it comes to sharing in the success of a really good idea. The company recently announced a merger with Justice Holdings (OTCBB:JSTUF), an investment vehicle co-founded by Bill Ackman and publicly listed in London. As part of the merger, 3G Capital gets $1.4 billion in cash and maintains its majority position, but will also list the combined company on the NYSE.
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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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Thursday, February 9, 2012
Investopedia: Yum! Brands Gives Its Skeptics Indigestion
Looking back, maybe it's not so hard to see why quick-service restaurants would do well in a tougher economy, but the performance of the top brands has been nothing less than blistering. In the case of Yum! Brands (NYSE:Yum), the story continues to be all about China. With Yum! still set on turning China into a fast food nation, it would be dangerous to assume that the company's remarkable growth is due to slow anytime soon. (For related reading, see Investing In China.)
Q4 Earnings Trade a Little Margin for Growth
There was no question that Yum! Brands saw fine growth in the fourth quarter. Total revenue rose 15%, with reported U.S. revenue down a little (though up in the mid-single digits on an adjusted basis), International up about 7% and China up a torrid 39%. Not surprisingly, same-store sales show a similar breakout - China's same-store sales growth was an eye-popping 21%, while International growth was much more modest (up 3%) and U.S. results were fairly soft (up 1%).
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Q4 Earnings Trade a Little Margin for Growth
There was no question that Yum! Brands saw fine growth in the fourth quarter. Total revenue rose 15%, with reported U.S. revenue down a little (though up in the mid-single digits on an adjusted basis), International up about 7% and China up a torrid 39%. Not surprisingly, same-store sales show a similar breakout - China's same-store sales growth was an eye-popping 21%, while International growth was much more modest (up 3%) and U.S. results were fairly soft (up 1%).
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Thursday, December 22, 2011
Investopedia: Arcos Dorados - Rare Or Overcooked?
What happens when emerging markets start seeing better incomes and higher standards of living? In the earliest days, it means cell phones, televisions and motorbikes. Later, it can mean adding more protein to the diet. Still later, it often means spending on luxuries like dining out, and American quick-service restaurants often represent affordable luxury in many parts of the world.
To that end, Arcos Dorados (NYSE:ARCO) is not only a play on improving economic conditions in Latin America, but a way to play one of the faster-growing markets for the proven and globally-successful restaurant chain McDonald's (NYSE:MCD). While it's one of the very few direct investment plays available to American investors within this trend, it's not exactly the cheapest stock by many standards.
Read more here:
http://stocks.investopedia.
To that end, Arcos Dorados (NYSE:ARCO) is not only a play on improving economic conditions in Latin America, but a way to play one of the faster-growing markets for the proven and globally-successful restaurant chain McDonald's (NYSE:MCD). While it's one of the very few direct investment plays available to American investors within this trend, it's not exactly the cheapest stock by many standards.
Read more here:
http://stocks.investopedia.
Monday, October 31, 2011
Investopedia: Manitowoc Has More Room To Grow
Manitowoc (NYSE:MTW) competes in just two broadly-defined markets, construction cranes and foodservice equipment. Unfortunately, these are not especially strong times for either market. Although Manitowoc was not bubbling over with optimism in its latest quarterly report, the Street was nevertheless very encouraged by what it heard. Even though this stock jumped more than 20% in the wake of its third quarter report, investors can still expect more to come from this small industrial stock.
Signs of Progress in Q3
Overall revenue rose 16% this quarter, with growth in the crane segment leading the way at 21%. Although slower, foodservice revenue growth of 10% was hardly terrible. Manitowoc management doesn't go as far into specifics as investors might like, but they did say that crane demand in the Americas was strong; not much of a surprise, really, considering the growth in markets like Brazil.
Read the full article here:
http://stocks.investopedia.
Signs of Progress in Q3
Overall revenue rose 16% this quarter, with growth in the crane segment leading the way at 21%. Although slower, foodservice revenue growth of 10% was hardly terrible. Manitowoc management doesn't go as far into specifics as investors might like, but they did say that crane demand in the Americas was strong; not much of a surprise, really, considering the growth in markets like Brazil.
Read the full article here:
http://stocks.investopedia.
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.
Read the full article at Investopedia:
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Monday, April 25, 2011
Investopedia: Chipotle Still Smokin'
Like the smoked jalapeno it's named after, Chipotle Mexican Grill (NYSE:CMG) offers more than just heat. Chipotle continues to post eye-popping traffic growth and strong margins, and there still looks to be plenty of expansion potential. It is also worth noting, though, that Chipotle sports a valuation that may be too spicy for even the boldest growth investors.
Another Great Quarter
Chipotle once again delivered impressive growth, exceeding the high end of the analyst range with 24% overall growth and nearly $510 million in revenue. While new store openings continue to be an important part of the story, the existing outlets are doing exceptionally well too - same-store sales growth was 12.4% for the first quarter, with higher pricing chipping in less than 1%. (For more, see Should Investors Ignore Monthly Sales?)
Profitability was a little more mixed, but still good news for the most part. Store-level margins contracted almost a full point, but still stand at an impressive 25.2%. Similarly, operating margin contracted a bit (from 15% to 14.7%), but operating income growth was still 22%. Growth was restrained a bit by promotional expenses tied to a buy-one-get-one-free offer, as well as higher food costs.
To read the full version, please go here:
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Another Great Quarter
Chipotle once again delivered impressive growth, exceeding the high end of the analyst range with 24% overall growth and nearly $510 million in revenue. While new store openings continue to be an important part of the story, the existing outlets are doing exceptionally well too - same-store sales growth was 12.4% for the first quarter, with higher pricing chipping in less than 1%. (For more, see Should Investors Ignore Monthly Sales?)
Profitability was a little more mixed, but still good news for the most part. Store-level margins contracted almost a full point, but still stand at an impressive 25.2%. Similarly, operating margin contracted a bit (from 15% to 14.7%), but operating income growth was still 22%. Growth was restrained a bit by promotional expenses tied to a buy-one-get-one-free offer, as well as higher food costs.
To read the full version, please go here:
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Tuesday, January 25, 2011
Investopedia: McDonald's Seems A Bit Overcooked
Quality is all well and good, but at some point price always has to matter. That, then, is the issue with McDonald's (NYSE:MCD) shares today - there is really no quibbling over the quality of the company, but have investors already baked in more than enough optimism?
The Quarter that Was
The fourth quarter was really not a performance that McDonald's management is going to tack onto the board as a prototype. Revenue grew 4% (5% in constant currency) and met estimates, and full-quarter comp growth of 5% was not all that bad. More problematic, though, is the trend in those comps. December comps were a bit soft, rising 3.7% versus 4.8% in November. U.S. comps slipped below 3% in December, while Europe went negative. Although the company pointed towards weather as a key issue in the U.S. and Europe numbers, and management is still looking for 4 to 5% growth in 2011, institutional investors can be a twitchy and unforgiving lot.
Going down the earnings statement, the company appeared to have a relatively lower-quality quarter. Operating income grew 2% as reported (or 3% in constant currency) and the company clearly lost some of its operating leverage. What's more, while the company met estimates for the period, it got a boost from more favorable taxes and would have missed the quarter otherwise. (For more, See Zooming In On Operating Income.)
The Road Ahead
For a company of its size, McDonald's has done an impressive job of growing its free cash flow over the past five or six years. Moreover, the company has navigated the recession better than many other restaurant operators. Some of that is due to new store hours and menu items (particularly the value meal options), while some of it is also due to the quality-value trade-off that customers see in McDonald's menu (nutritionists may hate it, but customers like it).
Please follow this link for the full piece:
http://stocks.investopedia.
The Quarter that Was
The fourth quarter was really not a performance that McDonald's management is going to tack onto the board as a prototype. Revenue grew 4% (5% in constant currency) and met estimates, and full-quarter comp growth of 5% was not all that bad. More problematic, though, is the trend in those comps. December comps were a bit soft, rising 3.7% versus 4.8% in November. U.S. comps slipped below 3% in December, while Europe went negative. Although the company pointed towards weather as a key issue in the U.S. and Europe numbers, and management is still looking for 4 to 5% growth in 2011, institutional investors can be a twitchy and unforgiving lot.
Going down the earnings statement, the company appeared to have a relatively lower-quality quarter. Operating income grew 2% as reported (or 3% in constant currency) and the company clearly lost some of its operating leverage. What's more, while the company met estimates for the period, it got a boost from more favorable taxes and would have missed the quarter otherwise. (For more, See Zooming In On Operating Income.)
The Road Ahead
For a company of its size, McDonald's has done an impressive job of growing its free cash flow over the past five or six years. Moreover, the company has navigated the recession better than many other restaurant operators. Some of that is due to new store hours and menu items (particularly the value meal options), while some of it is also due to the quality-value trade-off that customers see in McDonald's menu (nutritionists may hate it, but customers like it).
Please follow this link for the full piece:
http://stocks.investopedia.
Wednesday, July 14, 2010
Financial Edge - Why There Are Always Stocks Worth Owning
Buy and hold? Sell in May and go away? Bull market, bear market or lambs-to-the-abattoir market?
You will find no shortage of financial commentators trying to scare you out of the market and out of your holdings. Their advice often comes with the candy coating that "they are just trying to help you avoid losses", but there is poison within the message. Sure, it is painful to see your investments decline in value and there is rarely any good reason to hang on to a failed idea, but if you worry too much about trying to time the market, you will sell yourself out of any chance of reaping long-term gains. (For related reading, check out 4 Ways To Weather An Economic Storm.)
In other words, no matter what the economy looks like, there are always stocks worth owning.
To continue to the full piece, please click below:
http://financialedge.investopedia.com/financial-edge/0710/There-Are-Always-Stocks-Worth-Owning.aspx
You will find no shortage of financial commentators trying to scare you out of the market and out of your holdings. Their advice often comes with the candy coating that "they are just trying to help you avoid losses", but there is poison within the message. Sure, it is painful to see your investments decline in value and there is rarely any good reason to hang on to a failed idea, but if you worry too much about trying to time the market, you will sell yourself out of any chance of reaping long-term gains. (For related reading, check out 4 Ways To Weather An Economic Storm.)
In other words, no matter what the economy looks like, there are always stocks worth owning.
To continue to the full piece, please click below:
http://financialedge.investopedia.com/financial-edge/0710/There-Are-Always-Stocks-Worth-Owning.aspx
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.
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