|Bid||0.0000 x 1300|
|Ask||0.0000 x 1300|
|Day's Range||4.7000 - 4.8100|
|52 Week Range||4.7000 - 11.5600|
|Beta (5Y Monthly)||0.51|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 06, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||11.00|
Whatever the reason a stock is trading for under $5 a share, these stocks are conversation starters. Some will point out the low valuation of these companies presents opportunity for upside which will be hard to come by when investing in a large-cap. What’s more, you can load up on a much larger number of shares than you could with a stock trading in triple or even double digits.On the other hand, the naysayers argue these tickers are likely to have bad fundamentals and face too many obstacles and, therefore, are more of a speculative shot at lottery like returns than an investment.Either way, both are right, and both could be wrong, too. The trick, as with any investment, is to find the most compelling opportunities the market presents.We went on our own intrepid search for 3 stocks trading at a bargain price, specifically looking for ones which those in the know think are poised to take off over the next 12 months. We used TipRanks’ Stock Screener tool which revealed that in addition to the low valuation, all three currently have a “Strong Buy” consensus rating. Let’s dive in.Orbcomm Inc. (ORBC)Orbcomm operates in an industry that is expected to grow substantially in the new decade. Orbcomm provides machine-to-machine (M2M) solutions across the globe, with its Internet of Things (IoT) technology used to track and monitor large assets. The company’s main markets are in transportation, heavy equipment, and government services, amongst others. Orbcomm is the only commercial satellite network 100% dedicated to M2M.The stock experienced a crushing 2019, losing almost 50% over the year due to disappointing earnings reports and transportation industry headwinds; Economic data suggests that in November, more than 1,000 truck drivers lost their jobs. Further data from October indicates heavy truck order activity is down 51% from 2018 levels.Canaccord's Michael Walkley expects the soft industrial data to continue until mid-2020 and believes it will affect some of Orbcomm’s hardware sales. Nevertheless, the analyst thinks “the shares have limited downside risk at the current valuation.”The 5-star analyst expounded, “Despite our cautious view of macro trends for a portion of Orbcomm’s transportation business unit, we believe the shares have priced in soft near-term hardware sales trends. With Orbcomm’s shares trading roughly 4X our 2021 adjusted EBITDA estimate, we view the risk reward on the shares as very positive… We believe if management can execute, the shares should return to higher multiples.”What does it mean, then? It means that Walkley keeps his Buy rating on Orbcomm. To reflect the headwinds, though, the price target comes down a notch, from $10 to $9. The reduced figure still represents outstanding returns in the shape of 132% could be in store over the next twelve months. (To watch Walkley’s track record, click here)Overall, the Street is with Walkley. 2 additional Buy ratings given to the M2M solutions provider over the last three months add up to a Strong Buy consensus rating. The average price target comes in at $7.67 and implies potential upside of a hefty 98%. (See Orbcomm stock analysis on TipRanks)Plug Power (PLUG)From M2M technology, we move on to another very modern solution, hydrogen fuel cell technology, or renewable energy. Plug Power’s fuel cell systems are designed to replace conventional batteries in electric vehicles and industrial trucks.In sharp contrast to ORBC, PLUG had an outstanding 2019. Its share price added considerable muscle in the shape of 154% throughout the year. Investors were buoyed by strong forecasts, management purchasing company stock, and an ambitious five-year plan, projecting revenue of $1 billion and adjusted EBITDA of $200 million.More good news has extended the rally into 2020; Plug is up by over 23% year-to-date following the announcement that it was awarded a $172 million contract for hydrogen fuel cell deployments from a Fortune 100 customer.B.Riley FBR’s Christopher Van Horn argues PLUG’s “stock and the fuel cell technology seem to be at an inflection point.” The 4-star analyst thinks the contract demonstrates the company’s competitive position, and with an addressable market of $30 billion, believes there should be more opportunities for PLUG coming up.Van Horn said, “PLUG has an implied 35% five-year CAGR from our 2019 revenue estimate and an almost 90% four-year CAGR from our 2020 adjusted EBITDA estimate. We believe this growth could come from its existing customer base, including Wal-Mart, Amazon, and others, as well as new customers. We think this award at roughly $172 million over two years is another step in the right direction to achieve these goals.”Therefore, Van Horn reiterated his Buy call on PLUG along with a price target of $6. This indicates upside potential of 54% over the next 12 months. (To watch Van Horn’s track record, click here)Is the Street ready to plug into PLUG? Yes, it is. The 5 Buy ratings and solitary Hold given over the last three months make the consensus rating a Strong Buy. An average price target of $4.50 puts the upside potential at 15%. (See Plug Power stock analysis on TipRanks)Carrols Restaurant (TAST)From modern solutions, we move to the food industry, where we take a seat at Carrols Restaurant. The company operates the largest Burger King franchisee in the world.It often happens that a stock trading for under $5 used to have a much larger market-cap, but for whatever reason, has lost its luster, and is now much cheaper. For Carrols, last year was a combination of underwhelming earnings reports plus a bizarre software mix up which charged customers incorrectly for discount meals that cost the company $8.3 million. As a result, the stock took a beating in 2019, starting the year at $9.84 and ending it down 28% at $7.05.The company recently announced preliminary 4Q19 results which has further worried investors; In October, Carrols had anticipated 4%-plus SSS (same store sales) for Burger King in its upcoming report, but the new data indicates the SSS figure lands at only 2%. Since then, the share price has dropped further and is down by 32% since the start of the year.So, should you stay away from TAST? Not according to SunTrust Robinson’s Jake Bartlett. The 5-star analyst explained, “TAST attributed the SSS miss to decreased traffic as Burger King laps its '10 Nuggets for $1' promotion last year (through mid-Feb.), a 'Winter Whopperland' game promotion in December that drove app downloads, but not sales, a potential impact from Popeye's new chicken sandwich (TAST's Popeyes 4Q19 21.2%-plus), a potential impact from MCD's '2 for $5' promotion and weak breakfast sales (negative in 4Q19 as lapped the $0.89 pancake promotion). While disappointing, TAST appears encouraged by upcoming menu innovation at Burger King… The promotional environment should remain balanced and significant acquisitions for both Popeyes and Burger King stores are expected in '20.”Accordingly, then, Bartlett reiterated a Buy recommendation on Carrols and kept his $14 price target. The target implies upside potential of a whopping 192%. (To watch Bartlett’s track record, click here)Currently, there are few on the Street taking a bite out of Carrols, but those who are, like the (TAST)e. A Strong Buy consensus rating is formed of 3 Buys, and at $8.83, the average price target suggests potential upside of a handsome 84%. (See Carrols Restaurant stock analysis on TipRanks)
Are you buying what Wall Street is selling today? If it involves Beyond Meat (NASDAQ:BYND) stock I'd suggest politely declining headline worries and instead work on placing a first order in shares or even a second helping. Let me explain.Source: calimedia / Shutterstock.com Wednesday wasn't a great day using a straightforward price performance metric in BYND shares. The faux-meat upstart and recent IPO finished the day off by 5.25%. Thursday saw another 3.7% trimmed off the price before after-hours trading gave back 2%To be sure, a drop of that size could be and most often is considered a large eye-poke for most publicly traded companies. Importantly though, in Beyond Meat stock you could rightfully label the price action a case of mild indigestion.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fact is BYND stock has been one of the markets standout performers in early 2020. Shares have soared more than 60% in less than three weeks. Earlier this month rival and privately held Impossible Meats announced it was axing its pursuit to get on to McDonald's (NYSE:MCD) menu. That's good news as Beyond Meat looks to lock up its own licensing agreement with the fast food behemoth. And in turn, investors sent shares soaring by as much as 80% in six trading sessions. * 9 Up-and-Coming Small-Cap Stocks to Watch This week BYND stock saw another supportive flame lit under shares. On Tuesday Beyond Meat jumped 18% after coffee and breakfast-fix giant Starbucks (NASDAQ:SBUX) announced plans to explore plant-based menu options as it strives to become a "resource-positive" company.In 2020's more complete context, the combined Wednesday-Thursday 8.3% grilling is mostly insignificant and easily chalked up to simple profit-taking. But if you're aching to point fingers somewhere else, look no further than Burger King's largest franchisee Carrols Restaurant Group (NASDAQ:TAST).On Wednesday the company announced sales of its Impossible Foods-based Whooper are off to 28 per store per day from 32 in its last reporting period. Unsurprisingly, the news stoked concern the fake meat market is dead in its tracks. But is it? At the end of the day, if baby bull markets are raised out of fear and forced to climb walls of worry, BYND stock has a lot going for it off and on the price chart. Beyond Meat Stock, by the Chart Source: Charts by TradingViewYou could say I've been an early advocate of Beyond Meat stock. Not only is the company's product routinely found in my fridge, but in early January, I also detailed an early-bird buy strategy at $81 in front of BYND's massive breakout from a key congestion pattern. * The Top 5 Dow Jones Stocks to Buy for 2020 The resulting price action has re-established Beyond Meat's deserved reputation as a volatile momentum stock. It's not for the faint of heart. But for those investors comfortable with those risks and owning one of the market's top growth and hotly contested battleground stocks, there are ways to reduce the chances of owning a fatty investment that's unkind to the portfolio.One way to enter into Beyond Meat stock is momentum-based and wait for a price move through $138. This entry is a couple percentage points above the recent high. It makes an allowance for price volatility while also clearing the Fibonacci 38% resistance level. I'd use this week's closing high of $129.18 as an initial stop to guard against possible larger losses.Bottom line, this is a potentially very fast, money-style trade and taking initial profits near the 50% retracement level at $155 makes sense in relation to the risks taken on the price chart. Moreover, with earnings less than two weeks out, this exposure needs to be actively reassessed. And if you're like me, that should include using Beyond Meat stock's options market for more secure, risk-adjusted opportunities.Disclosure: Investment accounts under Christopher Tyler's management currently own positions in Beyond Meat (BYND) stock and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Stocks That Cautious Investors Should Sell Now * 7 Healthcare Stocks With 100% Street Support * 3 Chinese Stocks to Buy, Sell, or Play from Either Side The post Is it Time to Come Back for Seconds on Beyond Meat Stock? appeared first on InvestorPlace.
(Bloomberg) -- Burger King is cutting the price of its faux-meat burger as sales start to dip following last year’s introduction.Carrols Restaurant Group Inc., the biggest Burger King franchisee in the U.S., said sales tapered off to about 28 Impossible Whoppers daily per store -- down from 32 previously. The company, which has more than 1,000 Burger King locations, said sales appear to be stabilizing at that level. The sandwich was recently added to the chain’s two-for-$6 discount menu on a temporary basis. That compares to the previous suggested price of $5.59 per sandwich.The slowdown is not stopping the chain from continuing to use the item as a lure for diners, however. More promotions and ads are coming for Impossible Foods Inc. items, Carrols Chief Executive Officer Daniel Accordino said at a conference.“That plant-based platform will be advertised and will be expanded on the Burger King marketing calendar in 2020,” he said, noting that there will be an expansion of the Impossible Whopper line this year, and that the company is testing the Impossible Whopper Jr. and Impossible Sausage.Shares of Beyond Meat Inc., a competitor of Impossible Foods, fell as much as 5.9% to a session low.‘Exceed Expectations’Dominic Flis, a Burger King owner in Little Rock, Arkansas, said that Impossible Whopper sales have recently dipped to fewer than 20 per store a day, compared with 30 a day when it was first introduced. He may now be selling it at a loss, he said.“It’s definitely compressing the margin,” he said.Burger King’s plant-based Whopper “continues to exceed expectations, drive traffic to our restaurants and attract new incremental guests,” Chris Finazzo, president of the chain’s Americas region, said in a statement. “We continue to see high levels of repeat restaurant visits, showing that guests are enjoying the Impossible Whopper and returning for more over and over again.”Burger King, owned by Restaurant Brands International Inc., introduced the meat alternative nationwide last year after a successful test in St. Louis. The company said in October that the sandwich was a “huge hit” and helped U.S. comparable sales, a closely watched measure, climb 5% in the third quarter.Impossible-related promotions have included free delivery, free samples for delayed airport passengers, and beginning last week, the item’s entry on the discount menu.Satisfying SalesImpossible Foods “is satisfied” with sales at fast-food restaurants, spokeswoman Rachel Konrad said. She said that a lot of variability is normal due to factors such as seasonality, ad campaigns and restaurant locations.“We’re happy to work with customers to improve sales across the board,” Konrad said.Across the U.S., restaurants and grocery stores are rushing to add plant-based options. It remains to be seen whether their popularity is a long-lasting trend, but the biggest restaurant and food companies are moving to capitalize on the growth. Starbucks Corp. on Tuesday said it’s exploring meat alternatives for its breakfast menu, while McDonald’s Corp. is testing faux-meat from Beyond Meat in Canada and from Swiss company Nestle SA in Germany. Food distributor Sysco Corp. last week said it’s introducing a new plant-based burger patty in the U.S.More MeatDespite the rising popularity of faux meat, Americans are also eating more real meat than ever. Total red meat and poultry consumption is expected to rise to 225.6 pounds per person this year from 224.3 pounds in 2019, according to USDA data. Even at Burger King, there’s no evidence that the meat-free option has led to less meat consumption.Impossible Whopper sales were not cutting into regular Whopper sales, according to a note from UBS analyst Steven Strycula in December.It’s not surprising that sales have leveled off, said Adam Chandler, author of Drive-Thru Dreams: A Journey Through the Heart of America’s Fast-Food Kingdom.“The fatigue tends to set in after the initial buzz,” he said, noting that Carrols has reported a similar stabilization of Popeyes much-hyped chicken sandwiches. But Chandler doesn’t expect the Impossible Whopper to be cut from menus anytime soon because of the chain’s big investment in a national rollout, he said.“It’s going to stick around for a long time,” he predicted.(Adds Beyond Meat shares in fifth paragraph.)To contact the reporters on this story: Leslie Patton in Chicago at firstname.lastname@example.org;Deena Shanker in New York at email@example.comTo contact the editors responsible for this story: Sally Bakewell at firstname.lastname@example.org, Jonathan RoederFor 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.
If you love investing in stocks you're bound to buy some losers. But the long term shareholders of Carrols Restaurant...
Carrols operates Restaurant Brands International Inc (NYSE: QSR)-branded restaurants, including 1,035 Burger King restaurants and 65 Popeyes. The company said in a Monday press release that comparable restaurant sales for its Popeyes restaurants rose 21.2% in the fourth quarter. Comparable restaurant sales at Popeyes locations for the full year rose 11.9% from 2018, according to Carrols.
Carrols Restaurant Group, Inc. ("Carrols" or the "Company") (Nasdaq: TAST) today reported preliminary sales results for the fourth quarter and full year 2019. The Company also announced that it would host a fireside chat at the 22nd Annual ICR Conference tomorrow morning at 10:00 AM ET.
Syracuse-based Carrols Restaurant Group has made a whopper of a Cheektowaga deal. Carrols has paid $1.2 million to acquire a free-standing Burger King outlet in the Thruway Mall, buying the restaurant from G&I IX Thruway Plaza LLC, according to documents filed in the Erie County Clerk’s office. The deal is the latest Burger King acquisition by Carrols in recent years.
Is Carrols Restaurant Group, Inc. (NASDAQ:TAST) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The […]
Carrols Restaurant Group Inc. , the U.S.'s largest franchisee of Burger King restaurants with more than 1,000 locations, said Monday that it has named Anthony Hull chief financial officer, effective Jan. 2, 2020. Hull was most recently an executive at Realogy Holdings Corp., first serving as CFO and treasurer then as senior advisor. He succeeds Tim LaLonde, who served as interim CFO from September after the death of Paul Flanders. In addition to Burger King, Carrols also franchises 61 Popeyes restaurants. Both Burger King and Popeyes are Restaurant Brands International Inc. chains. Carrols stock is down 31% over the past year while the S&P 500 index is up 18.2% for the period.
Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (TAST) today announced that it has appointed Anthony “Tony” E. Hull as the Company’s Vice President, Chief Financial Officer, and Treasurer effective January 2, 2020. Mr. Hull is a results-oriented, accomplished Chief Financial Officer at both public and private companies with domestic and international operations in a broad range of industries.
Carrols Restaurant (TAST) delivered earnings and revenue surprises of -190.00% and 0.16%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Carrols Restaurant Group, Inc. today reported financial results for the third quarter ended September 29, 2019.
Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the […]
November opened with a bang in the markets as several points of good news boosted investor morale.To start with, the Federal Reserve, at its FOMC meeting, did exactly what everyone expected. It cut rates by 0.25%, and indicated that no further cuts are in the offing. The jobs report on Friday, while not a blockbuster, beat a gloomy expectation by a wide margin, showing 128,000 new jobs in October against a forecast of just 90,000. In addition, revisions to August and September added another 95,000 new jobs. And to top it all off, the S&P 500 hit another record high on November 1, reaching 3,066.With markets looking good, it’s no wonder that the major investment firms are making ‘Buy’ recommendations. Deutsche Bank, Germany’s largest financial services bank, maintains a highly reputable staff of investment analysts and experts, 337 strong, monitor the markets and advise investors. Their collective success rate of 60%, and their 8.4% average return on recommendations, has ranked Deutsche Bank 8 out of 50 in the TipRanks database of top performing research firms.We’ve dipped into that database, using the Best Stocks to Buy tool, to find several stocks that Deutsche Bank has recommended as we start the fourth quarter.Lyft (LYFT)Uber’s main competitor, Lyft operates across the US and Canada. Through its popular mobile app, Lyft markets a network of on-demand car rides, scooter rental, and bicycle sharing. The company controls a 28% market share in this niche, making it the second largest ride-sharing company in the US. Lyft brought in over $2.16 billion in revenue last year, but, also like Uber, it operates at a net loss.In its Q3 earnings report last Wednesday, Lyft revealed the extent of that net loss. The results were somewhat mixed, but on whole better than expected. The EPS loss of $1.57 was 5% better than the forecast $1.66, and quarterly revenues were also up, at $955.6 million against the estimate of $915 million. The company boosted its full-year revenue guidance, too, projecting 2019 revenues of $3.57 billion, a significant increase from the previous estimate. The full-year guidance was substantially boosted by a 4% bump in the Q4 revenue estimates, from $943 million to $980 million.On the negative side of the ledger, company losses of $43.5 million during Q3 were 85% higher than the same quarter last year. Lyft’s net loss has greatly increased during 2019, although losses have lessened since Q1. Increasing revenues have eased investor concerns on this issue, although it remains an asterisk on LYFT.Deutsche Bank’s 5-star analyst Lloyd Walmsley sees reason for optimism in the earnings report. He noted, “Strong results combined with a faster than expected path to EBITDA profitability, which could come even sooner than recent guidance (we now model 3Q 2021), reaffirms our view that the market is underappreciating the earnings power at Lyft… we think Lyft is well positioned to show continued ramp towards profitability.”Walmsley rates LYFT stock a Buy along with a $70 price target, which suggests an impressive 70% upside to the stock. (To watch Walmsley's track record, click here)LYFT’s overall rating, a Strong Buy on the analyst consensus, is based on 22 Buys given in the last three months. Dissenting opinions include 7 Holds; the last Sell rating on this stock was given 7 months ago. Shares are selling for $42.98, and the average share price is $70. As noted, this gives an upside potential of 70%. (See Lyft stock analysis on TipRanks)Carrols Restaurant Group (TAST)It’s not a household name, so you probably haven’t heard of Carrols Restaurant. But there’s a good chance you’ve eaten at one of their locations – the company is the world’s largest owner and operator of Burger King franchises. Starting in 1976, Carrols began acquiring Burger King locations, and converting its eponymous store to the burger franchise. The company now owns over 1000 Burger Kings in 23 US states. In addition, Carrols owns 55 Popeyes chicken locations.Tomorrow, Carrols is scheduled to report Q3 earnings. Wall Street is looking for an EPS of 10 cents per share, an 11% increase from last year’s Q3 EPS of 9 cents. A 35% gain in revenue, to $401.7 million, is expected to support the EPS gain. To put the quarterly report in some perspective, TAST has reported steady gains in annual revenue since 2010, from $348 million to last year’s $1.18 billion. Burgers might not be a necessity of life, but they are both popular and profitable at scale.Deutsche Bank analyst Brian Mullan initiated his firm’s coverage of TAST with a Buy rating and a $9 price target. In his analysis, the analyst points out the stock’s valuation, saying, “Following relatively disappointing 2Q19 earnings results last month, we see a dislocation in shares that should correct over the balance of the year simply by assuming that 2H19 SSS can improve (as guided) and that restaurant level margin declines can get "less bad" exiting the year. Should this occur, we believe this "bridges the gap" to a better 2020E and beyond story where Cambridge synergies, ROFR acquisition opportunities, and a ramp in new unit development will all come into greater focus for investors. As such, we believe that the risk-reward for TAST is favorable." (To watch Mullan's track record, click here)TAST is not widely covered by the Street’s analyst corps; among those who do cover the stock, however, the consensus is a Strong Buy. TAST shows an average price target of $12.33, implying room for a robust 62% upside from the current trading value of $7.35. This stock is bargain priced, and plenty of room for growth. (See Carrols Restaurant stock analysis)LHC Group (LHCG)Our third bullish call from Deutsche Bank is definitely not a well-known name – but it is a stock worth watching, with plenty of long-term potential. As the population ages, home health and senior care will become an ever-greater necessity, and the companies that offer these services will stand to profit. LHC, based in Louisiana and offering senior health services in 35 states plus DC, is one of these. The company is a high-quality health provider, offering a combination of home health, community services, facility care, and hospice. Its current operations reach 60% of the US senior population.The expanding customer base and high demand for services has pushed LHCG up. The stock has strongly outperformed the general markets, gaining over 31% year-to-date, against an S&P 500 gain of 22%. Looking ahead to the next earnings report, analysts expect that LHC Group will show $1.08 EPS, 13% higher than the year-ago quarter. Revenues are expected to rise 5% year-over-year, to $532.24 million.The firm foundation gives this company a strong base to move forward, and that is what has attracted Deutsche Bank to the stock. In an initiation report dated September 14, analyst Justin Bowers says it bluntly: “LHC Group’s organic growth rates have outperformed the industry by 3% per year on average over the last five years and we expect this to continue given the company’s differentiated joint venture model. The company's seasoned management team has a track record of navigating payment and regulatory reform…” Bowers’ $145 price target indicates confidence in the stock; he sees room for a 17% upside. (To watch Bowers' track record, click here)The optimistic Deutsche Bank report on LHCG is in line with other analyst views on the stock. The Strong Buy consensus is based on 7 recent ratings, including 6 buys and only 1 Hold. Shares sell for $123, so it’s not cheap, but the average stock-price forecast of $134 suggests a 9% upside. As analyst Bowers said in the title of his initiation report, "this stock is a marathon, not a sprint." (See LHC Group stock analysis)
Carrols Restaurant (TAST) 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.
In a good economy, restaurant stocks are usually good bets. And there are some in this sector that are doing very well and are worth considering. I wrote about one in particular last week.But a rising tide doesn't lift all boats. And some restaurant stocks are having a tough go of it now.Consumer spending seems to be slowing, and a global slowdown -- if not recession -- is looming. Ultimately, I think the U.S.consumer is going to be fine, a distinction I'm careful to make for Growth Investor. But nonetheless, these stocks are going to feel it as consumers become choosier about where they spend their money when they go out.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Penny Stocks to Buy These seven restaurant stocks to leave on your plate are all rated "D" or "F" in my Portfolio Grader -- and that's during relatively good times. If things get worse or even stay the same, they're going to see more trouble from healthier competition and choosier diners. Restaurant Stocks to Buy: Fiesta Restaurant Group (FRGI)Source: Philip Lange / Shutterstock.com Fiesta Restaurant Group (NASDAQ:FRGI) is a Texas-based chain of Caribbean-inspired restaurants -- Pollo Tropical and Taco Cabana -- and it is very popular in southern Florida where it began, as well as Texas.But the problem is, it is having a tough time expanding. It recently announced it was shuttering its operations in Atlanta, closing all nine Pollo Tropical locations in the area.This is never a good sign. It signals that the company is either having a tough time competing against established restaurants in the area or that management didn't have the right go-to-market strategy. Or both.Either way, this isn't helping the company. The stock is off 70% in the past year, and just reported another quarter of weak earnings. I've been warning about this stock for a while now. Potbelly (PBPB)Source: Ken Wolter / Shutterstock.com Potbelly (NASDAQ:PBPB) started in a Chicago neighborhood in 1977, when a husband and wife started selling sandwiches to customers of their antique shop.In the 1990s an entrepreneur saw an opportunity. He bought the shop and started a chain of restaurants to carry the idea to the rest of the U.S. -- and then beyond. Now PBPB has nearly 475 stores in the U.S. as well as in Canada, the United Arab Emirates, United Kingdom, Kuwait and India.The problem is, it likely has grown too fast, a problem with many chains. And no big company has come in to buy it out. Plus it has significant competition in the fresh hot sandwich market, including the biggest food chain in the world, Subway. * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) Since 2017, PBPB stock has been in decline and that decline sped up in 2019 as earnings and revenue have disappointed investors for a year. All in all, it's not a business model that would tempt me; I see much better options out there. The stock is off 72% in the past year and the chart isn't looking like a comeback is in sight. Carrols Restaurant Group (TAST)Source: Savvapanf Photo / Shutterstock.com Carrols Restaurant Group (NASDAQ:TAST) is an interesting restaurant company. It doesn't actually have a brand. It owns franchises of Burger King and Popeyes restaurants.Currently, it owns 1,010 Burger Kings and 55 Popeyes in 23 states. It brings in about $1.3 billion in revenue every year, so it's a big organization. But Burger King and Popeyes are owned by Restaurant Brands International (NYSE:QSR). TAST simply buys franchises and runs them.This can be good business in a strong economy. In today's economy, it's best to be QSR since it simply receives fees from its franchises and isn't exposed to the market conditions like rising worker costs and lower sales.The stock is off 52% in the past year, and doesn't look like it's headed up anytime soon. BJ's Restaurants (BJRI)Source: David Tonelson / Shutterstock.com BJ's Restaurants (NASDAQ:BJRI) is kind of an American-style pub experience. That means it's everything on a bigger scale. The restaurants -- BJ's Restaurant & Brewhouse, BJ's Pizza and Grill and BJ's Grill -- are big as are their selections of beers and fast-casual dining options.Its Southern California spin on the brew house experience was its unique selling point, but there are many other competitors in this space that are local, regional and national competitors.And that is starting to show up in BJRI's numbers. The third quarter was tough for a lot of restaurants, but BJRI doesn't have the cushion that others do. The stock is off 50% in the past year, and growth as well as same-store sales will be challenging. * 7 Beverage Stocks to Buy Now Again, you want to see a business that's hard to duplicate (or beat). And sometimes, you have to invest early in a theme to find them. I'm seeing that opportunity in another corner of the market that may surprise you. Chanticleer Holdings (BURG)Source: QualityHD / Shutterstock.com Chanticleer Holdings (NASDAQ:BURG) has owned and operated franchise restaurants since its inception in 2005.Perhaps its best-known brand is Hooters. It has also franchised some boutique burger restaurants along the way, like BGR, Little Big Burger and American Burger Co.The trouble is, Hooters isn't exactly the kind of growth brand it was a decade or two ago. It may work in some markets -- and BURG also has international franchises -- but it's not exactly a concept that draws attention any longer. And upscale burger joints have flooded the market.Even more telling regarding its prospects is the fact that BURG recently did a reverse merger with a privately held biotech firm that specializes in cancer research.That's never a good sign.The stock is off 68% in the past year and it's likely that this odd pivot is its last gasp, rather than a new beginning. Noodles & Company (NDLS)Source: Ken Wolter / Shutterstock.com Noodles & Company (NASDAQ:NDLS) is a national chain that started with a menu focused on noodle dishes from around the world. Who doesn't like noodles, right?When they first opened they were very popular, especially with finicky kids. But then the age of gluten-free eating hit and NDLS was a focused gluten purveyor. That became a challenge.Fortunately, the chain has pivoted to veggie noodles and now, cauliflower noodles.Its Q2 earnings and revenue numbers were solid. But it really doesn't have a real growth market left, so it's in survival mode. Same-store sales were in line with expectations, but as we enter a slowing economy, it's going to be tough to keep the growth going. * 10 Hot Stocks Staging Huge Reversals NDLS stock is off 61% in the past year and this knife is still falling. Sometimes, even if you see decent fundamentals, you have to stay away when the trend is against you. Momentum is a must for the stocks I'd recommend for Growth Investor. Domino's Pizza (DPZ)Source: Ken Wolter / Shutterstock.com Domino's Pizza (NYSE:DPZ) is certainly one of the most famous fast food brands out there. And it is another company that has seen many years of dominance in its sector.But again, the gluten-free trends and healthy eating styles that pervade the market now are having an effect on business. Plus, DPZ is constantly challenged by price wars from national competitors and significant local competition in most markets.And it's difficult for DPZ to pivot. This makes it a challenge for prospective franchisees. They see healthy alternative fast-casual restaurants and a pizza chain known more for quick delivery than quality products.This is not the pizza of Gen X or Gen Z. And while it may stay top of the pizza chain heap, that heap is getting smaller.DPZ stock is stuck in lower highs and lower lows. It's off about 0.5% in the past 12 months, but it's still carrying a trailing price-to-earnings ratio around 28.At the end of the day, restaurants are a low-margin business. That makes it very tough for restaurant stocks to deliver (so to speak) the earnings as well as operating margins I'm looking for.That's why I'm looking elsewhere for growth plays. One of my favorites is a tech trend that is already bigger and deeper than most people realize. "The Mother of All Technologies"Up until now, technologies have certainly made our lives easier and more efficient … but with a lot of room for human error. People trip over cords, spill their coffee and get tired.Artificial intelligence does not.If that sounds futuristic, well then, the future is already here. If you use apps like Netflix (NASDAQ:NFLX), TurboTax, QuickBooks, Zillow (NASDAQ:Z) or even an email spam filter, then AI is already helping your day run more smoothly. And as scientists find even more applications for artificial intelligence -- from healthcare to retail to self-driving cars -- it's incredible to imagine how much data will be involved.To create AI programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every AI system.So any one company that can help with customers' data issues is the one company that's most worth investing in.You don't need to be an expert to take part. I'll tell you everything you need to know, as well as my "buy" recommendation, in Growth Investor. My No. 1 stock for the AI trend is still under my buy limit price -- so you'll want to sign up now. Get in while it's still cheap.Click here for a free briefing on this groundbreaking innovation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post 7 Restaurant Stocks to Leave on Your Plate appeared first on InvestorPlace.
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