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6 Restaurants Trading With Low Price-Sales Ratios

According to the GuruFocus All-In-One Screener, a Premium feature, the following restaurant companies were trading with low price-sales ratios as of April 6.

Darden Restaurants

Darden Restaurants Inc. (DRI) was trading around $45.48 per share with a price-sales ratio of 0.64 and a price-earnings ratio of 8.87.


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The casual dining restaurant has a market cap of $5.5 billion. The stock has risen at an annualized rate of 5.43% over the past decade.

The discounted cash flow calculator gives the company a fair value of $59.60, suggesting it is undervalued with a 23% margin of safety, while the Peter Lynch Fair Value is $66.93.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.89%, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.82% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.4%.

Flanigan's Enterprises

As of Monday, Flanigan's Enterprises Inc. (BDL) was trading around $10.86 per share with a price-sales ratio of 0.17 and a price-earnings ratio of 5.93.

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The small cocktail lounge chain has a market cap of $20.19 million. The stock has risen at an annualized rate of 6.67% over the past 10 years.

The DCF calculator gives the stock a fair value of $30.55, suggesting it is undervalued with a 64.45% of margin of safety. The Peter Lynch earnings line gives the stock a fair price of $27.45.

With 3.11% of outstanding shares, Simons' firm is the company's largest guru shareholder.

Cracker Barrel Old Country Store

Cracker Barrel Old Country Store Inc. (CBRL) was trading around $70 on Monday with a price-sales ratio of 0.54 and a price-earnings ratio of 7.66.

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The owner of restaurants has a market cap of $1.67 billion. The stock has risen at an annualized rate of 9.87% over the past decade.

The DCF calculator gives the company a fair value of $170.83, suggesting it is undervalued with a 59% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $137.

With 0.99% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.44% and Robert Olstein (Trades, Portfolio) with 0.16%.

Chipote Mexican Grill

Chipote Mexican Grill Inc. (CMG) was trading around $611 with a price-sales ratio of 3.10 and a price-earnings ratio of 49.39.

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The burrito restaurant owner has a market cap of $16.97 billion. The stock has climbed at an annualized rate of 18.23% over the past 10 years.

The DCF calculator gives the company a fair value of $133, suggesting the stock is still overpriced by 361%, despite the most recent market correction. The Peter Lynch earnings line gives the stock a fair price of $185.

Some notable guru shareholders are Simons' firm with 6.35% of outstanding shares, Bill Ackman (Trades, Portfolio)'s Pershing Square and Spiros Segalas (Trades, Portfolio)' Harbor Capital with 1.41%.

Domino's Pizza

Domino's Pizza Inc. (DPZ) was trading around $328 with a price-sales ratio of 3.8 and a price-earnings ratio of 34.33.

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The owner of pizza restaurants and related delivery services has a market cap of $12.81 billion. The stock has risen at an annualized rate of 37.92% over the past decade.

The DCF calculator gives the company a fair value of $272, suggesting it is undervalued with a 20.6% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $143.

The company's largest guru shareholder is Steve Mandel (Trades, Portfolio)'s Lone Pine Capital with 4.44% of outstanding shares, followed by Simons' firm with 4.37% and Ken Fisher (Trades, Portfolio) with 1.92%.

Jack In The Box

Jack In The Box Inc. (JACK) was trading around $31.80 with a price-sales ratio of 0.83 and a price-earnings ratio of 12.02.

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The operator of fast-casual and quick-service restaurants has a market cap of $720.56 million. The stock has risen at an annualized rate of 5.35% over the past decade.

The DCF calculator gives the company a fair value of $40.53, suggesting it is undervalued with a 21.44% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $39.90.

The company's largest guru shareholder is Jana Partners (Trades, Portfolio) with 2.97% of outstanding shares, followed by Cohen's firm and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.08%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 5 Dividend Stocks With Good Price-Earnings Ratios
  • Insiders Roundup: NGM, Legg Mason
  • 6 Retailers Trading With Low Price-Earnings Ratios



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This article first appeared on GuruFocus.