|Bid||67.31 x 800|
|Ask||68.90 x 900|
|Day's Range||66.40 - 67.93|
|52 Week Range||50.20 - 67.93|
|Beta (3Y Monthly)||1.13|
|PE Ratio (TTM)||28.05|
|Forward Dividend & Yield||2.00 (3.16%)|
|1y Target Est||70.50|
McDonald’s is betting big on big data. The fast-food giant is spending $300 million to acquire tech platform Dynamic Yield in a move to personalize customers’ drive-thru experience. Yahoo Finance’s Dan Roberts, Melody Hahm, Myles Udland, and Brian Sozzi talk about McDonald’s largest acquisition in 20 years.
Like PepsiCo, Inc., versus the Coca-Cola Company or Ford Motor Company versus General Motors Company, the battle between McDonald's Corporation (NYSE: MCD) and Burger King represents one of the most iconic and important business rivalries in American history. For more than 60 years, McDonald's has been the trailblazer that set the standard by which all other franchises operate.
Restaurant Brands (QSR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Burger King Corp. owner Restaurant Brands International Inc. has filed a lawsuit calling for Irving-based Fritz Management LLC and Guillermo Perales to remove all Burger King logos and trademarked items from 37 restaurants that reportedly are in default on their franchise agreements.
Cowen Initiates Coverage on Wendy’s with an 'Outperform' Rating(Continued from Prior Part)WEN’s performanceWendy’s (WEN) stock was flat in early morning trading on April 10. YTD (year-to-date), the stock has risen 15.2% as of April 9. The
Cowen Initiates Coverage on Wendy’s with an 'Outperform' RatingCowen’s “buy” recommendation On April 10, Cowen initiated coverage on Wendy’s (WEN) with an “outperform” recommendation and a price target of $21.0. This 12-month price
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with prowes...
GPS Hospitality, a franchisee that has more than 400 Burger King and Popeyes Louisiana Kitchen restaurants in 11 states, has added 75 Pizza Hut locations to its portfolio. Burger King and Popeyes are part of Restaurant Brands International Inc. ; Pizza Hut is part of Yum Brands Inc. . The acquired Pizza Huts are in Alabama, Georgia, Kentucky and Tennessee. GPS has appointed Kent Dawdy, its vice president of operations, to head up this new division in the company. Yum Brands stock has rallied 9.3% in 2019. Restaurant Brands International is up 26% for the year to date. And the S&P 500 index has gained 11.3% for the period.
Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and investors' positions as of the end of the fourth quarter. You can find write-ups about an individual hedge fund's trades on numerous financial news websites. […]
Burger King is testing a vegetarian Whopper in St. Louis, joining the ranks of fast-food and fast-casual restaurants partnering with Impossible Foods on no-meat burger options. Chris Finazzo, president of Burger King North America, told CNN Business the Impossible Whopper will give someone who wants to eat a burger every day but doesn't necessarily want to eat beef a reason to come into the restaurants more frequently. Burger King, a division of Restaurants Brands International (NYSE: QSR), is the first national fast-food chain to sell the plant-based burger, per CNBC. White Castle, with 377 locations in about a dozen states, rolled out its meatless Impossible Slider nationwide in September after it proved popular in a pilot program, while Carl's Jr. offers a plant-based burger made by Impossible Foods competitor Beyond Meat.
Restaurant chain Popeyes Louisiana Kitchen accounts for around 7 percent of Restaurant Brands International Inc (NYSE: QSR )'s total EBITDA and last week released a franchise presentation that shows some ...
, announced that it will be testing its new, plant-based version of the Whopper sandwich in St. Louis restaurants. The vegetarian "Impossible Whopper" will be available at 59 exclusive Burger King restaurants in the St. Louis area and will feature all of the same trappings of a regular Whopper, minus the all-beef patty. The offering makes Burger King the first coast-to-coast fast food restaurant to serve the plant-based "meat" from food startup Impossible Foods.
In a recently published Pershing Square’s Annual Letter 2018, billionaire Bill Ackman shared his opinions in detail about the stocks in the fund’s 13F portfolio, among which is Restaurant Brands International Inc. (NYSE:QSR). A copy of the letter you can find – here. To sum up, Bill Ackman holds the opinion that recent changes at […]
2018 was an excellent year for PSH based on our portfolio companies' operating results and their general business progress. Since year end, more constructive market conditions and the continued operating progress of our portfolio companies have led PSH to generate strong 2019 year-to-date, absolute and relative performance of more than 31.9% versus 13.5% for the S&P, our best start to a year in the 15-year history of Pershing Square.
The coffee market is back in the news, but the latest development may not have a big impact 0n Starbucks (NASDAQ:SBUX), stock. Burger King recently announced a $5 per month coffee subscription model, giving members one free cup of coffee per day.Source: Shutterstock In the unlikely event that a member uses his or her subscription every day of the month, he or she would only pay a rather cheap 17 cents per cup. Burger King is said to be creating a "community" around its coffee and breakfast options, and aims to peel off traffic from Dunkin Brands (NASDAQ:DNKN) and McDonald's (NYSE:MCD). * 7 Energy Stocks to Buy Now The good news for SBUX stock is that, despite the ample media attention, Burger King is hardly a threat to Starbucks. McDonald's has already offered cheap coffee as part of its breakfast package for years. It's never been clear that there is a huge overlap between Starbucks' and McDonald's customer bases. As a result, Burger King's invasion of the market is unlikely to shake up the sector either, though it likely will hurt McDonald's and Dunkin Donuts at the margins.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, Starbucks stock has plenty of other issues, even if Burger King's initiative isn't one of them. At the end of the day, the combination of the high valuation of Starbucks stock and its limited growth prospects make it hard to endorse the stock, particularly as it trades near its new, all-time highs. You'll almost certainly be able to buy Starbucks stock at a cheaper price later this year. Is Starbucks Stock Really So Expensive?A standard bearish talking point on SBUX stock is that its price-earnings ratio is quite high. That has only become more true as Starbucks stock has rallied in recent months. With the stock now trading for more than $70, Starbucks is selling at 32 times its trailing earnings and 24 times analysts' consensus 2019 earnings estimate.McDonald's, by comparison, is trading at 24 times its trailing earnings and 21 times its forward earnings. Restaurant Brands, (NYSE:QSR), the owner of Burger King and Tim Horton's, has around the same multiple as McDonald's. Dunkin Brands is slightly pricier than either of those, though cheaper than Starbucks. Meanwhile, the suddenly hot Chipotle (NYSE:CMG) is back over 40 times its earnings despite all its problems over the past couple of years. Against that backdrop, you can make a case that SBUX stock isn't that expensive compared to its rivals. The Owners of Starbucks Stock Still Need a Lot to Go RightWhile a case can be made that the valuation of Starbucks stock is reasonable, I'd argue that's more because restaurant stocks as a whole have become overvalued. Looking at Starbucks in isolation, rather than against its sector, it's clear that Starbucks stock is pricing in some strong growth in coming years.That said, for this year, analysts on average predict SBUX will report 6% revenue growth and 12% earnings growth. Those numbers are fine; they're quite good, in fact. for a company that is already as large as SBUX. But for a stock that's trading around 30 times its trailing earnings, that growth still isn't that impressive. Keep in mind that Starbucks is benefiting from several favorable trends - such as unusually low coffee-bean prices - that are making its earnings jump more than its revenues.Ultimately, Starbucks will find it hard to keep its price-earnings ratio this high if its revenue continues to increase around 5%. It's true that Starbucks is still trying to open a ton of stores, particularly in China. But there are limits to how many more stores it can open in many markets. This is close to a mature brand at this point, while SBUX stock is back to trading as if the company can still grow vigorously for years to come. Revamped Domestic StoresWhile China is clearly Starbucks' most important market at the moment, don't forgot about its U.S. operations. In recent years, the company has struggled to generate any same-store sales growth at home. Its mishandling of the situation in Philadelphia during which two men were wrongfully arrested didn't help matters either.Starbucks' most recent results were slightly better. Its same-store sales growth in the U.S. market came in at 4%. Before we get too excited, however, consider that traffic at its stores was merely flat, as its sales growth was entirely caused by higher prices and a more favorable mix of products sold.Unfortunately for SBUX stock, there is a limit to how much its average check size can rise before consumers get irritated. Particularly once the economy turns down again, SBUX will have trouble using higher prices to maintain its sales growth.That's why it is so important that SBUX is focusing on getting its store traffic up again. It is using several methods to attempt to accomplish this aim, such as tinkering with its rewards program. However, its most important initiative is its decision to reevaluate all of its domestic stores.According to CNN Business, SBUX is looking for ways to make all its stores cater more to local demands. Busy metro areas, such as New York, need more stores where beverages ordered through the app can be easily picked up. The company found that in the Texas market, clients prefer stores with more interior lighting. In New Jersey, there will be more lounge areas for customers to hang out in the afternoons.By rebuilding its store base to meet local needs, SBUX may finally be able to get more people into its stores again. The Verdict on Starbucks StockGive credit where credit is due; Starbucks' last quarter was better than its previous few quarters. And while I'm still skeptical about the company's long-term outlook in China, so far, it is putting up decent results in the country.Additionally, I see management's efforts to overhaul its U.S. store base as a wise move. Ultimately, if SBUX stock is going to remain a compelling growth story, it needs to accelerate its same-store sales again, and higher prices can't be relied upon to do that forever. If SBUX can get more foot traffic into its stores, particularly in off-peak hours, the outlook of Starbucks stock would greatly improve.That said, at this P/E ratio, consider me uninterested in Starbucks stock. The stock is rather sensitive to the overall economy, and should correct pretty dramatically when the economy slows. Continued trade- war jitters between the U.S. and China could also cause another drop in Starbucks stock. With SBUX stock near its all-time highs, investors can wait for a correction before buying any shares.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Starbucks' Growth Does Not Justify the Premium Price of SBUX Stock appeared first on InvestorPlace.
Restaurant Brands International CEO Jose Cil chats with Yahoo Finance about the future of Popeyes, Burger King and Tim Horton's.
Stocks like Domino's Pizza (NYSE:DPZ) don't go on sale very often. But to some investors, "on sale" might be an exaggeration.Source: Shutterstock Domino's Pizza stock, even after its recent selloff, is hardly cheap. Indeed, DPZ stock still trades at over 22 tines analysts' consensus earnings per share estimate. * 10 Stocks on the Rise Heading Into the Second Quarter That's a huge multiple for a relatively mature company. And given that DPZ stock has tanked lately in part due to its big Q4 earnings miss last month, it's a multiple that might not seem all that attractive.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut DPZ has plenty of room to grow into that multiple. Between the company's same-store-sales growth and the new stores it will open, its revenue should continue to increase nicely for years to come. Given its franchise model and the leverage on its balance sheet, its higher revenues will have an amplified effect on its earnings.DPZ is still facing risks. But those risks seem manageable, as Domino's is well-positioned to handle any challenges ahead. DPZ stock isn't cheap, but stocks like this shouldn't be, and they very rarely are. The Case for DPZ StockDPZ simply has come to dominate the pizza business. Yum! Brands' (NYSE:YUM) Pizza Hut's growth has stalled out in recent years. Papa John's (NASDAQ:PZZA) sales are collapsing. Yet Domino's keeps growing at impressive rates.Indeed, during the company's "disappointing" Q4, its U.S. same-store sales rose 5.6% year-over-year. Meanwhile, Pizza Hut's comparable-store sales were unchanged. Papa John's comps fell 8%. McDonald's (NYSE:MCD) same-store sales rose 2.3% in Q4, and most investors thought its results were good.No major chain's same-store sales are increasing as rapidly as those of DPZ. No major chain, in fact, is coming close. That trend should continue, and Domino's can benefit from opening new stores, as well.It's adding stores to U.S. metro areas. That's been a successful strategy despite fears that new stores might "cannibalize" existing stores. The company's overseas business continues to grow, in terms of both comparable stores and new opportunities.DPZ still expects its annual retail sales to rise 8%-12% over the next few years, with its global comparable sales increasing 3%-6% and its net store count rising 6%-8% annually. On the other hand, 8%-12% growth might not sound like much, since DPZ stock has a trailing-twelve month P/E ratio of 29.But because of DPZ's franchise model, 8%-12% revenue growth results in earnings and cash-flow growth that's much higher than that. Store-level costs are borne by franchisees, enabling DPZ's operating margins to rise faster than its revenue. And the leverage on Domino's balance sheet further boosts its net margins. For 2020, for instance, analysts' consensus estimate calls for a 9.8% increase in sales and an 18% increase in EPS. The Risks and Rewards of DPZ StockThe company's 8%-12% revenue-growth guidance, then, suggests that its earnings easily could increase 100% or more over the next four or five years. Even assuming that the P/E ratio of DPZ stock drops in several years as DPZ matures, investors will still have an easy path to double-digit annual returns, including dividends. Any outperformance - or a continued willingness by investors to pay up for DPZ stock - sets up a path for DPZ to reach $500 and beyond.But there are risks facing DPZ stock. The most obvious one is the potential for recession in the U.S. or in key international markets. Domino's struggled during the financial crisis: its same-store sales declined 4.9% in 2008. But it clearly has a better business ten years later, and its emphasis on low price points could mitigate the macro pressures on it, particularly domestically.There are two smaller concerns. The first is that on the whole there's much more competition in the pizza industry than ever before. The rise of online ordering services like GrubHub (NYSE:GRUB) and DoorDash has allowed thousands of restaurants to offer delivery services, breaking pizza's traditional dominance of that space. In turn, other chains now offer delivery, including casual dining giants like Brinker International (NYSE:EAT) and Dine Brands Global (NYSE:DIN).But as that trend has accelerated lately, Domino's sales don't appear to have suffered. The company's comp-sales growth has decelerated from 12% in 2015 to 6% in 2018. That's not necessarily a surprise, however, given the tougher competition. But 6% still is more than enough growth to leverage expense growth and expand margins. And it hardly suggests that the company's business model is facing an existential threat. The Best FranchiserThe final risk is one facing the entire industry. Companies like McDonald's and Burger King owner Restaurant Brands International (NYSE:QSR) have benefited from franchising more restaurants. That's benefited MCD stock, in particular, as rising labor and food costs become the problem of the franchisees , not that of the corporate parent.But as James Brumley pointed out last year, at some point franchisees won't be able to handle that pressure any more. Carrols Restaurant Group (NASDAQ:TAST), the largest Burger King franchisee, shows the problem. Over the past three years, QSR stock is up 63%, but TAST has declined by almost 25% during the same period.Domino's franchisees, however, are doing quite well. The company pointed out in a recent investor presentation that its franchisees' average EBITDA per store has soared in the past decade, rising from $49 million in 2008 to over $137 million in 2018. Franchise-level profits have stopped increasing lately, but they're still positive, and franchisees' margins still look quite healthy.So, purely from a business standpoint, Domino's looks like far and away the best pick among restaurant stocks. It has more opportunities to open additional stores than its large peers. DPZ can still take plenty of market share from its corporate rivals (and independent pizzerias). Its franchisees are happy. Since Domino's is doing an awful lot right at the moment, the owners of Domino's stock have little to complain about.Given DPZ's growth potential, DPZ stock is worth paying up for. With Domino's Pizza stock now 15% cheaper than it was just a few weeks ago, the shares may be expensive, but they're still attractive.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Domino's Pizza Stock Looks Too Cheap appeared first on InvestorPlace.