Raw Data Report: Fast Food

Each day, Wall Street is flooded with stock research offering a multitude of conflicting investment opinions. As such, TickerMine is not in the business of providing more opinions. We believe that accurate raw data points can be used to gain insight in to the stock selection and valuation process.

Fast Food Chain Jack-in-the-Box (JBX) Rate Lunch as the Busiest Time of Day

Tickermine surveyed thirty-two Jack-in-the-Box fast-food restaurants around the country and determined that lunch was the busiest time of day at twenty-three (72%) restaurants. The introduction of the new Sirloin Steak Skillet has increased business at twelve (38%) restaurants and is the most popular menu item at five (16%) restaurants. The Bacon Ultimate Cheeseburger and the Jumbo Jack were equally ranked the most popular menu item at sixteen (50%) restaurants. Chicken Strips and the Chicken Club were the most popular items at two (6%) and three (9%) restaurants respectively. Twenty-seven (84%) respondents stated that these items had been offered on the menu for a long time. All (100%) restaurants had been open at that location for over one year.

Classic Root Beer Float a Hit for 26% of A&W Restaurants (YUM)

In TickerMine's recent poll of A&W restaurants across the country, we found that lunch is the busiest time for 59% of locations polled. The root beer float is the most popular item on the menu (26%), followed by the Papa Burger (22%) and the Original Bacon Double Cheeseburger (19%). Ninety-six percent of restaurants polled said their most popular item had been on the menu for a long time. Every restaurant surveyed had been in business for more than one year.

Long John Silvers' (YUM) Customers Turn to Value Meals

A recent Tickermine survey of 32 YUM Brands' Long John Silvers' restaurants show that the most popular menu item is the Value Basket Combo, with 38% of mentions, followed by the buttered lobster bites, with 19%. 56% stated that their location is busier at lunch than dinner.

Starbucks (SBUX) Drip Coffee Sales Slow

43% of employees in a recent Starbucks survey stated that 30%-50% of their customers come in more than four times per week. Sales of plain drip coffee are weak, with 55% stating that drip coffee accounts for less than 10% of their sales, up from 34% in April. 75% of customers stated that they order a specialty drink rather than drip coffee, up from 71% in April.

Comments

[PhillyD]

I'm surprised that SBUX drip coffee is actually declining. Hmmm ... that's the first I've heard of that. I would have thought the exact opposite ... maybe that's why they're recently reinstated their flavorings.

I'm looking for any reason to invest in this company in a big way. I only find one reason to put my money there ... overseas store openings. Is that enough reason to do it? If they could even come half way to the success they had in penetrating the U.S. then this stock is a bargin since they would be one of the true growth prospects for brand growth in the food industry. Figure Coke and McDonalds cannot grow as fast as Starbucks due to Starbucks relatively lack of overseas penetration compared to the other two. But can they pull it off?

If the answer is yes then this may be one of the best growth plays of the next 10-20 years. It could still be another 10 bagger from here (at least a 5 bagger.) However, if they can't then you will lose 10-50% of your money in the next 10 years. Which is it? Is the gamble worth it? 50% reduction (tops) vs. 1,000% gain. Here I go again ... talking myself into a 25K chunk.