Restaurant stocks are interesting if they have a stable business model with additional growth potential abroad. Look at companies like McDonald's (MCD), Yum Brands (YUM) or Starbucks (SBUX), how they have performed over the past ten years. All three companies keep a strong brand, and they are now established in major economies worldwide. In addition, they paid wonderful dividends and gave investors a part of the company's success in cash money.
I analyzed the restaurants industry by the best yielding stocks. Fifty companies are listed, of which 16 pay dividends. The average industry yield amounts to 2.4%; price-to-earnings ratio is 21.4. However, I selected only such stocks with a current P/E multiple of less than 20, a value below the industry average. Exactly eight stocks fulfilled these criteria. These are the detailed results:
1. Darden Restaurants (DRI) has a market capitalization of $6.54 billion. The company employs 180,000 people, generates revenues of $7,500.20 million and has a net income of $478.70 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,057.60 million. Because of these figures, the EBITDA margin is 14.10% (operating margin 8.63% and the net profit margin finally 6.38%).
The total debt representing 30.16% of the company's assets and the total debt in relation to the equity amounts to 85.16%. Last fiscal, a return on equity of 25.00% was realized. Twelve trailing months earnings per share reached a value of $3.26. Last fiscal year, the company paid $1.28 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 15.61, Price/Sales 0.87 and Price/Book ratio 3.54. Dividend Yield: 3.38 percent. The beta ratio is 0.89.
2. McDonald's Corporation (MCD) has a market capitalization of $102.31 billion. The company employs 400,000 people, generates revenues of $27,006.00 million and has a net income of $5,503.10 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,351.70 million. Because of these figures, the EBITDA margin is 30.93% (operating margin 31.58% and the net profit margin finally 20.38%).
McDonald's accounted $10.8 billion in long-term debt as of Q3/2011. This represents 34.04 percent of the total balance sheet. Twelve trailing months earnings per share reached a value of $5.27. Last fiscal year, the company paid $2.53 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 18.97, Price/Sales 3.79 and Price/Book ratio 7.67. Dividend Yield: 2.80 percent. The beta ratio is 0.44.
3. Bob Evans Farms (BOBE) has a market capitalization of $1.12 billion. The company employs 44,819 people, generates revenues of $1,676.91 million and has a net income of $54.16 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $171.69 million. Because of these figures, the EBITDA margin is 10.24% (operating margin 5.28% and the net profit margin finally 3.23%).
The total debt representing 13.64% of the company's assets and the total debt in relation to the equity amounts to 22.48%. Last fiscal, a return on equity of 8.32% was realized. Twelve trailing months earnings per share reached a value of $2.30. Last fiscal year, the company paid $0.78 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 16.69, Price/Sales 0.67 and Price/Book ratio 1.75. Dividend Yield: 2.60 percent. The beta ratio is 0.91.
4. CEC Entertainment (CEC) has a market capitalization of $719.75 million. The company employs 17,300 people, generates revenues of $817.25 million and has a net income of $54.03 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $185.58 million. Because of these figures, the EBITDA margin is 22.71% (operating margin 12.84% and the net profit margin finally 6.61%).
The total debt representing 49.90% of the company's assets and the total debt in relation to the equity amounts to 245.64%. Last fiscal, a return on equity of 33.15% was realized. Twelve trailing months earnings per share reached a value of $2.80. Last fiscal year, the company paid $0.00 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 13.63, Price/Sales 0.88 and Price/Book ratio 4.90. Dividend Yield: 2.31 percent. The beta ratio is 1.04.
5. Brinker Intl. (EAT) has a market capitalization of $2.21 billion. The company employs 100,400 people, generates revenues of $2,761.39 million and has a net income of $141.06 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $333.87 million. Because of these figures, the EBITDA margin is 12.09% (operating margin 7.44% and the net profit margin finally 5.11%).
The total debt representing 35.34% of the company's assets and the total debt in relation to the equity amounts to 119.54%. Last fiscal, a return on equity of 24.16% was realized. Twelve trailing months earnings per share reached a value of $1.66. Last fiscal year, the company paid $0.56 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 16.96, Price/Sales 0.80 and Price/Book ratio 5.31. Dividend Yield: 2.28 percent. The beta ratio is 1.46.
6. Texas Roadhouse (TXRH) has a market capitalization of $1.13 billion. The company employs 1,514 people, generates revenues of $1,004.99 million and has a net income of $60.69 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $131.90 million. Because of these figures, the EBITDA margin is 13.12% (operating margin 9.02% and the net profit margin finally 6.04%).
The total debt representing 7.42% of the company's assets and the total debt in relation to the equity amounts to 10.51%. Last fiscal, a return on equity of 12.71% was realized. Twelve trailing months earnings per share reached a value of $0.84. Last fiscal year, the company paid $0.00 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 19.41, Price/Sales 1.13 and Price/Book ratio 2.39. Dividend Yield: 1.95 percent. The beta ratio is 0.98.
7. Cracker Barrel Old Country Store (CBRL) has a market capitalization of $1.28 billion. The company employs 67,000 people, generates revenues of $2,434.44 million and has a net income of $85.21 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $229.97 million. Because of these figures, the EBITDA margin is 9.45% (operating margin 6.87% and the net profit margin finally 3.50%).
The total debt representing 41.98% of the company's assets and the total debt in relation to the equity amounts to 205.30%. Last fiscal, a return on equity of 37.08% was realized. Twelve trailing months earnings per share reached a value of $3.62. Last fiscal year, the company paid $0.88 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 15.36, Price/Sales 0.52 and Price/Book ratio 4.74. Dividend Yield: 1.80 percent. The beta ratio is 0.89.
8. Tim Hortons (THI) has a market capitalization of $8.01 billion. The company employs 1,863 people, generates revenues of $2,547.45 million and has a net income of $649.91 million. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $980.19 million. Because of these figures, the EBITDA margin is 38.48% (operating margin 34.39% and the net profit margin finally 25.51%).
The total debt representing 19.28% of the company's assets and the total debt in relation to the equity amounts to 33.29%. Last fiscal, a return on equity of 47.88% was realized. Twelve trailing months earnings per share reached a value of $3.92. Last fiscal year, the company paid $0.52 in form of dividends to shareholders.
Here are the price ratios of the company: The P/E ratio is 12.91, Price/Sales 3.13 and Price/Book ratio 5.98. Dividend Yield: 1.30 percent. The beta ratio is 0.71.
