Fri, Mar. 13, 1:39 PM
- Levy Acquisition plans to change its name to Del Taco after buying out the fast-food concept
- Shares of the company will trade on the Nasdaq under the symbol LEVY.
- The Del Taco chain has made an effort to expand its menu to include premium burritos and bowls in order to serve as a Chipotle (NYSE:CMG) and Taco Bell (NYSE:YUM) alternative.
- Expanding Del Taco into emerging and established markets is part of the plan post-buyout.
- Currently, Del Taco has about 550 restaurants in the U.S. across 16 states.
Fri, Mar. 13, 11:36 AM
- Chanticleer Holdings (HOTR +4%) is the restaurant stock which has shown the largest jump in sales per share for the last quarter, according to data from Marketwatch.
- Chains with outlets operated or owned by Chanticleer includes Hooters, Just Fresh Restaurants, and American Burger Co.
- Chanticleer's focus with Hooters is in developing the concept in new global markets.
- Habit Restaurants (HABT -6.7%) and Frisch's Restaurants (FRSH -0.4%) were the next two on the sales-per-share growth list.
- Chipotle (CMG -0.1%), despite all the focus on valuation by skeptics, ranked 4th by improving sales per share by 26% to $33.92 over the last year.
Thu, Mar. 12, 4:15 AM
- KFC (NYSE:YUM) and others may face pressure from consumer and environmental groups to change how its poultry are raised after McDonald's (NYSE:MCD) announced it would only source chickens raised without antibiotics identified as important to humans.
- Both McDonald's and Yum are stepping up efforts to win back diners lured away by chains such as such as Chipotle (NYSE:CMG) and Panera Bread (NASDAQ:PNRA), which boast antibiotic-free meats.
- Chicken stocks also took a hit yesterday on concerns that the push to remove antibiotics from hatcheries could raise costs or that inaction could crimp demand.
- Previously: Chicken stocks hit by antibiotic concerns (Mar. 11 2015)
- Previously: McDonald's unveils menu sourcing initiatives (Mar. 04 2015)
Wed, Mar. 11, 9:15 AM
- Credit Suisse launches coverage on Chipotle (NYSE:CMG) with a strong initiation at Outperform.
- The investment firm sets a price target of $785 on the restaurant chain.
- RBC Capital is also in a bullish mode on Chipotle, raising profit estimates and lifting its PT to $740.00
- Citigroup has a Street-high PT of $809 on CMG.
- A few Hold/Neutral ratings are out there on Chipotle, but a Sell rating from a major firm is missing.
- CMG +0.2% premarket to $659.99.
Sat, Mar. 7, 10:13 AM
- A powerhouse quarter of improved comps and widened margins is in the books for the restaurant industry as investors look forward to see if the trend extends.
- The industry is in a growth phase with eating and drinking establishments adding 58.7K jobs in February on a seasonally adjusted basis to mark the biggest monthly gain since December of 2012.
- The early read on Q1 traffic is favorable (ex-weather), although chains could see some wage inflation pressure and innovation outlays with differentiated concepts popping up at Habit Restaurants (NASDAQ:HABT), Zoe's Kitchen (NYSE:ZOES), Shake Shack (NYSE:SHAK), and a host of others.
- Major digital initiatives at chains such as Panera Bread (NASDAQ:PNRA) and Starbucks (NASDAQ:SBUX) also have the potential to be disruptive.
- A few screens to pick through the restaurant stock menu are listed below.
- Lowest forward P/E ratio: McDonald's (NYSE:MCD), Ruth's Hospitality (NASDAQ:RUTH), and Cracker Barrel (NASDAQ:CBRL).
- Lowest price/free cash flow ratio: Ruby Tuesday (NYSE:RT), Nathan's (NASDAQ:NATH), Jack in the Box (NASDAQ:JACK).
- Dividend yield +3%: DineEquity (NYSE:DIN), Darden Restaurants (NYSE:DRI), McDonald's, and Arcos Dorados (NYSE:ARCO).
- Top YTD performers: Jack in the Box (JACK), Wendy's (NASDAQ:WEN), Sonic (NASDAQ:SONC), El Pollo LoCo (NASDAQ:LOCO).
- PEG ratio below 2.00: Chuy's Holdings (NASDAQ:CHUY), Ruth's Hospitality, Krispy Kreme Donuts (NYSE:KKD), Cheesecake Factory (NASDAQ:CAKE), Brinker International (NYSE:EAT), Denny's (NASDAQ:DENN), Buffalo Wild Wings (NASDAQ:BWLD).
- Short ratio below 2%: Yum Brands (NYSE:YUM), Jack in the Box (JACK), Chipotle (NYSE:CMG), DineEquity, Bloomin' Brands (NASDAQ:BLMN), Denny's (DENN), McDonald's (MCD).
- Previously: Restaurant stocks continue hot streak (Feb. 24)
Thu, Feb. 12, 9:43 AM
- The read on retail sales in the U.S. isn't nearly as bad as the headline -0.8% M/M drop for January.
- Retail sales were up 3.3% compared to a year ago with a few sectors showing strong growth.
- Restaurant sales +11.3% Y/Y: The strong read follows up on a positive report from Black Box Intelligence on the sector. CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
- Sporting goods +8.0% Y/Y: DKS, BGFV, CAB, HIBB, SPWH.
- Building material and garden +6.9% Y/Y: A favorable weather compare came to the aid of this category. HD, LOW, LL.
- Health and personal care +6.6% Y/Y: Online channels have contributed for companies selling beauty and health items. ULTA, SBH, CVS, WBA, RAD.
Wed, Feb. 11, 10:37 AM
- Chain restaurants recorded their strongest pace of same-store sales in six years during January at 6.1%, according to data from Black Box Intelligence.
- An easier weather compare, $2 gas, and a more stable economic backdrop were factors.
- Traffic was up 2.4% during the month.
- The sales lift was delivered without much help from McDonald's which saw a marginal +0.4% comp gain.
- Comp sales in the Midwest improved 11.2% after the region had a much easier time with weather during January than a year ago.
- Chains with a large focus in the Midwest include Steak 'n Shake (NYSE:BH), Jimmy John's, Culvers, and Bob Evans (NASDAQ:BOBE).
- Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, BDL, NATH, LUB, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR, CBRL, BLMN, ZOES.
Fri, Feb. 6, 2:45 PM
- Argus analyst John Staszak thinks investors have overreacted by knocking 9% off Chipotle Mexican Grill’s (CMG -1.4%) stock price since the Q4 earnings report.
- In maintaining his Buy rating, the analyst notes that CMG posted generally strong sales in the quarter, and that its 17.6% operating margin is still about double that of many restaurant chains.
- While CMG’s valuation multiples remain high, Stasnak believes the current share price inadequately values prospects for strong same-store sales and the company’s aggressive unit expansion plans, and raises his stock price target to $780 from $750.
Thu, Feb. 5, 11:12 AM
- The IPO action on Grilled Cheese Truck (OTCQB:GRLD) looks a bit like a sign of a bull market top, according to Barry Ritholtz.
- His case seems rather compelling.
- Grilled Cheese Truck trades with a $107.4M market cap off of 9-month revenue of $2.6M and assets of $1M.
- The company looks like it provides a great service in the L.A. area and even has the 4 trucks to prove it.
- On a broader scale, some names in the restaurant sector have been identified by analysts as looking frothy.
- Habit Restaurants (NASDAQ:HABT), Shake Shack (NYSE:SHAK), Zoes Kitchen (NYSE:ZOES), Chipotle (NYSE:CMG), Potbelly (NASDAQ:PBPB), and Noodles (NASDAQ:NDLS) have all heard the take.
Wed, Feb. 4, 2:49 PM
- Chipotle (CMG -6.5%) disclosed during its earnings call that it doesn't expect to raise menu prices broadly in 2015.
- The company will add a surcharge on steak and barbacoa items if beef input costs remain elevated.
- Chipotle's price hike last year helped boost its average ticket by 8.3% in Q4.
- The company says new concepts ShopHouse Southeast Asian Kitchen and Pizzeria Locale are still in the early stages.
- Though Chipotle is seeking to develop the new chains, most of the company's growth for the foreseeable future is tied to the namesake brand.
- Previously: Chipotle -6.1% after comp growth slowdown guide (Feb. 3)
- CMG earnings call transcript
Wed, Feb. 4, 9:27 AM
- Goldman Sachs reiterates a Buy rating on Chipotle (NYSE:CMG).
- The investment firm sees an over-reation to the inevitable slowdown of comps at Chipotle in 2015.
- The fast-casual chain is bumping up against strong comps of 13.4%, 17.3%, 19.8%, and 16.1% over the next four quarters.
- Previously: Chipotle Mexican Grill beats by $0.05, revenue in-line (Feb. 03 2015)
- Previously: Chipotle -6.1% after comp growth slowdown guide (Feb. 03 2015)
- CMG -6.6% premarket.
Wed, Feb. 4, 9:13 AM
Tue, Feb. 3, 5:37 PM
Tue, Feb. 3, 4:12 PM
- Chipotle (NYSE:CMG) reports comparable-store sales rose 16.1% in Q4.
- Analyst estimates for comp sales ranged from 14% to 17%.
- Restaurant level operating margin +100 bps to 26.6% as sales leverage kicked in.
- Food cost ratio +110 bps to 35.0%.
- Store count +60 Q/Q to 1,783.
- Guidance: Chipotle's comp growth projection of a low to mid-single digit rate trails the 8% consensus estimate.
- CMG -6.1% after-hours.
Tue, Feb. 3, 4:03 PM| 4 Comments
Tue, Feb. 3, 11:15 AM
- The integration of mobile ordering is a major theme in the restaurant industry this year.
- Starbucks (NASDAQ:SBUX) and Domino's Pizza (NYSE:DPZ) have raised the bar the highest, while peers have gone into chase mode.
- Today, Wendy's (NASDAQ:WEN) reported a significant 3% sales lift in a 35-unit test run of an app order/dedicated drive-through program (h/t Barbarian Capital, Wendy's Investor Day webcast ).
- Two companies struggling with their drive-through windows due to kitchen complexity, Panera Bread (NASDAQ:PNRA) and McDonald's (NYSE:MCD), have their eyes on in-store ways to boost sales. In the case of McDonald's, the plan is to use self-order kiosks.
- Chipotle (NYSE:CMG) reports Q4 results after the bell today where there will be a focus on if the company's new mobile app had any impact on pick-up orders.
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