|Bid||67.21 x 1200|
|Ask||67.22 x 1200|
|Day's Range||66.35 - 67.33|
|52 Week Range||60.58 - 79.46|
|Beta (5Y Monthly)||1.13|
|PE Ratio (TTM)||28.43|
|Forward Dividend & Yield||2.08 (3.13%)|
|Ex-Dividend Date||Mar 12, 2020|
|1y Target Est||70.50|
The fried chicken sandwich craze at Popeyes translated into a real financial success for its parent company Restaurant Brands. Quarterly sales at Popeyes surged 34 percent last quarter - that's almost three times what analysts expected, according to IBES data from Refinitiv. That is the fried chicken chain's best growth since it was acquired in 2017, giving its parent company overall quarterly results that beat expectations when announced on Monday. Popeyes brought back the hugely popular chicken sandwich in November after overwhelming demand led to shortages in the summer. That success led to worries at Chik-Fil-A and envy from rivals like McDonald's, which started testing its own fried chicken sandwich. It's a good thing Popeyes did so well last quarter because other properties at Restaurant Brands - Burger King and Tim Hortons - put up disappointing numbers. At Burger King, where a plant-based Whopper supplied by Impossible Foods is served, quarterly sales came in below forecasts. And coffee chain Tim Hortons continued to struggle with competition from Starbucks and Dunkin' Brands. The restaurant recently pulled plant-based proteins from Beyond Meat from its menu. Shares of Restaurant Brands rallied in Monday trading.
Year-to-date, Beyond Meat (NASDAQ:BYND) stock is up an eye-popping 54%. Yet that BYND share price is still more than 50% below its all-time high of $239.71 seen on July 26, 2019, leaving many investors wondering if now maybe a good time to buy into the shares.Source: calimedia / Shutterstock.com As the California-headquartered company is scheduled to report earnings later this month, I expect increased volatility in the coming days, possibly with a downward bias in BYND stock. Long-term investors may regard a dip below $100 and especially toward the $80 level as opportunity to get long in the shares. What to Expect from Beyond Meat's Q4 EarningsThe plant-based meat substitute company topped estimates and reported its first quarterly profit with its Q3 earnings in October. Revenue of $92 million was better than the estimated $82.2 million. Earnings per share also came at 6 cents vs. the 3 cents expected.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs for the revenue streams, Beyond has two main segments: Gross Fresh Platform (over 95% of revenue) and Gross Frozen Platform (about 5% of revenue). Restaurant and foodservice accounts for about 45% of sales, while retail makes up the other 55%. Management highlighted that sales grew across both customer segment.Analysts would like to see that the positive Q3 trends continued into the year's final period. * 7 Utility Stocks to Buy That Offer Juicy Dividends Although the group raised revenue outlook for the year from about $240 million to a range of $265 million-$275 million, BYND stock dropped from about $108 to a low of about $71 in a matter of weeks following the earnings report. However, since then the share price has recovered and is currently hovering around $117. Long-Term CatalystsRecent research led by Christopher Gardner of Stanford University discusses the protein-consuming habits of Americans, including various drawbacks and ways to eat better. Both nationwide and globally, the debate on the effect of animal meat on environmental, health, and ethical concerns is indeed increasing.Many scientists and analysts agree that discourse around reduced consumption of animal-based meat is likely to gather pace in this new decade. And the number of people switching to or at least trying meatless, plant-based protein foods will likely increase. Therefore, Beyond Meat is possibly at the right place at the right time.Companies like beyond meat offer products that "approximate certain aesthetic qualities, such as texture, flavor, and color, and nutritional characteristics of specific types of meat."Q3 earnings showed that the group is working to increase its restaurant partnerships, including McDonald's (NYSE:MCD) and Yum! Brands' (NYSE:YUM) KFC unit. Management has also expressed interest to expand internationally, including China.However, the maker of plant-based burgers is also facing increased competition from traditional food companies as well as new entrants into the industry. For example, products by privately owned Impossible Foods is getting consumers' attention.Furthermore, in January, Restaurant Brands International's (NYSE:QSR) Tim Hortons said that the group would not offer Beyond Meat products any more. In other words, the meatless segment within the industry will draw in more companies with a wide range of plant-based food offerings. And the increased competition is likely to compress the margins of BYND stock and affect its valuation levels. What Could Derail BYND Stock?Valuation: Successful investing requires discipline. Therefore, I cannot advocate buying shares of companies at expensive valuations without doing extensive due diligence. Currently BYND stock trades at a forward P/E ratio of about 285, expensive by any standard.Another metric I pay attention to is the stocks's price-to-sales (P/S) ratio, which stands at about 26x. To put the metric into perspective, the S&P 500 index average price-sales ratio is 2.3x.The company can possibly still persist for several quarters in holding expensive valuation ratios well above S&P 500 or industry averages. For example, we have recently experienced such high valuations in many cannabis stocks in the past few years. However, then 2019 saw the bubble burst in most marijuana shares.In other words, if the company cannot keep up with the current aggressive growth assumptions, then shareholders may become more concerned about these rich valuation levels and the stock price could easily suffer.Profit-taking: If you are an investor who also pays attention to short-term technical charts, you may be interested to know that the short-term analysis is urging investors to exercise caution. While long-term investors would like to see BYND stock go over the $125 level, traders are likely to keep the range between $90 and $110.Therefore, based on your own risk/return profile, you may want to review your BYND stock holding and take some money off the table. Alternatively if you are experienced in hedging with options, you may consider initiating a covered call or protective put position. * 7 Large-Cap Stocks to Buy For Insulation From Volatility Finally, if you believe that you'd be able to ride out any short-term potential decline in the share price, then you may decide to do nothing at this point. The Bottom LineQ4 results from Beyond Meat should give a better indication as to whether the manufacturer will be able to satisfy investor risk appetite in the months ahead. It is important to remember that the company operates in a niche segment within the food industry. Therefore, beyond the initial hype most investors will eventually judge the company by the industry's average valuation metrics.Although I believe management will successfully take the necessary steps to grow the company profitably in the long run, I do not think the stock will repeat its recent exponential up-move in the next few weeks.This is a momentum stock. Therefore, investors should expect increased volatility around the earnings report date. Unless the group reports extremely strong numbers, we may have a repeat of the price action following the Q3 results, whereby Beyond Meat stock price initially decreases as many investors decide to take profits.Yet within three or four years, investors who buy the shares on the dips are likely to be rewarded handsomely. In the meantime, Beyond Meat may also find itself in the middle of a bidding war from various competitors to be acquired.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 20 Stocks to Buy From the Law of Accelerating Returns * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 * 7 U.S. Stocks to Buy on Coronavirus Weakness The post Could Beyond Meat Stock Beef Up Your Portfolio? appeared first on InvestorPlace.
Valentine's Day is Friday and Benzinga has you covered on where to score novelty or free food. Free Or Discounted Food Restaurant Brands International Inc's (NYSE: QSR ) Burger King on Friday will exchange ...
Restaurant Brands says the premium price for the Impossible Whopper was a hurdle for some customers.
Piper Sandler analyst Michael Lavery launched coverage of Beyond Meat stock with the equivalent of a Hold rating. One challenge for the maker of plant-based burgers is ordinary meat.
U.S. stocks rose Monday, with the S&P 500 and Nasdaq Composite each posting a record finish, after a firm round of corporate earnings offset concerns about the spread of the coronavirus. The Dow Jones Industrial Average added about 175 points or 0.6% to close near 29,277 while the S&P 500 rose about 24 points or 0.7%, closing around 3,352. The Nasdaq Composite Index jumped more than 1.1%, adding about 108 points to close near 9,628. Shares of Slack Technologies Inc. surged more than 15% on a report that IBM would soon adopt its software, but trading was halted shortly before the closing bell. Shares of Restaurant Brands International Inc. were up more than 2% on an earnings beat.
Restaurant Brands International stock flashed higher on Monday after fourth-quarter results beat expectations, propelled by the popularity of Popeyes Chicken Sandwich.
The viral frenzy for Popeye’s fried-chicken sandwiches boosted sales and pushed quarterly earnings past analysts’ estimates.
Restaurant Brands International Inc (NYSE: QSR ), the holding company of Burger King, Tim Hortons and Popeyes, reported a 34% same-store sales growth . Restaurant Brands earned 75 cents per share in the ...
The Miami-based fast-food chain introduced the new menu item in August 2019, spurring double-digit growth for the brand.
Same-store sales at Popeyes surged 34.4%, zooming past expectations of a 12.3% rise and recording the best growth since the Southern-style fast-food chain was bought in 2017. The chicken sandwich was relaunched in November following a successful introduction in August that had led to shortages at many of Popeyes restaurants across the country, while triggering a social media frenzy among diners.
(Bloomberg) -- Restaurant Brands International Inc. rose after posting earnings that topped analysts’ estimates, driven by surging popularity of the Popeyes chain’s chicken sandwich.Popeyes same-store sales soared 34% in the the fourth quarter, more than double the 15% gain analysts had predicted, according to Consensus Metrix. The brand’s business in the U.S. catapulted after it introduced a new chicken sandwich last year. It sold out in the summer, and was brought back in November chainwide.The “chicken sandwich has proven to be a game changer for the brand in every way,” Restaurant Brands Chief Executive Officer Jose Cil said in a statement.The shares rose as much as 3.6% to $66.17 in New York Monday. The stock was little changed this year through Friday’s close, after gaining 22% last year.Restaurant Brands, which also owns Burger King and Tim Hortons, reported fourth-quarter earnings, excluding some items, of 75 cents a share, exceeding the average analyst estimate by two cents.While Burger King’s same-store sales rose 2.8%, the result was shy of projections for 3.4% growth. Like Popeyes, the burger chain is having success in the U.S. with new fare, including the much-hyped Impossible Whopper, and plans to expand the line further this year. But faux meat competition is building as other chains, including McDonald’s Corp., add Impossible Foods Inc. or Beyond Meat Inc. items.Tim HortonsTim Hortons, where Restaurant Brands gets about 60% of its revenue, continues to struggle in its home market of Canada. The chain has failed to pull in diners with its lunch offerings, as well as cold coffees, amid steep fast-food and cafe competition. Comparable sales declined 4.3% last quarter, a bigger drop than analysts’ estimated.Restaurant Brands has big growth plans in China for Popeyes, and Cil said on a conference call Monday that there is “massive potential” for the brand there.Cil said it’s too early to say what impact the deadly coronavirus will have on Restaurant Brands’ business, and that Burger King China accounted for about 2% of systemwide sales in 2019. The immediate focus is on the health and well-being of its partners and customers, he said. In August, the company said there were about 1,000 Burger King restaurants in China.Rivals including McDonald’s and Yum China Holdings Inc. have closed locations in China.To contact the reporter on this story: Leslie Patton in Chicago at email@example.comTo contact the editors responsible for this story: Sally Bakewell at firstname.lastname@example.org, Lisa WolfsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. stocks edged lower at the start of trade Monday as traders awaited more clarity on the ultimate economic impact of a growing outbreak of the coronavirus, which has disrupted global supply chains dependent on Chinese production where the virus originated. The Dow Jones Industrial Average fell 13 points, or less than 0.1% to 29,090, the S&P 500 index shed 1 points, or less than 0.1% to 3,326 and the Nasdaq Composite index fell 8 points, or 0.1% to 9,512. Many Chinese factories began reopening Monday after weeks of closures aimed at preventing the spread of the virus, as officials there gain confidence that its spread will soon decelerate. But other facilities will remain closed, while the World Health Organization warned that the spread of the virus will likely accelerate in other countries in the coming days. Investors were also monitoring fourth-quarter earnings results, as earnings season enters its final stretch. Burger King parent Restaurant Brands International Inc. and Allergan PLC reported better-than-expected earnings Monday morning, sending their shares higher at the open.
Avis Budget Group Inc. named a new independent chairman of the board, and got a $15 million stock investment to boot. The car rental company said Bernardo Hees will be the new chairman, succeeded Leonard Coleman will continue as a board member. Previously, Hees has been chief executive of Kraft Heinz Co. , Restaurant Brands International Inc.'s Burger King Worldwide Holdings Inc. and America Latina Logistica over the past 15 years. Hees is investing $15 million in Avis's stock at Friday's closing price of $34.87, "to align his interests with those of all shareholders." The investment represents about 0.6% of the shares outstanding. Avis stock, which was still inactive in premarket trading, has rallied 13.4% over the past three months, while rival Hertz Global Holdings Inc. shares have edged up 1.0% and the S&P 500 has gained 7.6%.