103.18 0.00 (0.00%)
After hours: 5:35PM EDT
|Bid||103.17 x 800|
|Ask||104.91 x 800|
|Day's Range||102.73 - 103.36|
|52 Week Range||77.09 - 103.43|
|Beta (3Y Monthly)||0.40|
|PE Ratio (TTM)||22.00|
|Forward Dividend & Yield||1.68 (1.68%)|
|1y Target Est||N/A|
In early April, MTY Food Group acquired pizza chain Papa Murphy's (NASDAQ:FRSH) at a huge premium. It was big news for FRSH stock, which popped more than 30% to the acquisition price. But, the news was largely a non-event for other pizza stocks, since most market observers chalked up the acquisition as a one-off, and didn't extrapolate much by the way of M&A potential to other pizza stocks.Nonetheless, it's interesting to note that of the top 10 pizza chains in America, four of them have been acquired over the past eight years (Papa Murphy's, California Pizza Kitchen, Round Table Pizza and Cicis). That's a sky-high 40% acquisition rate for America's largest pizza chains. * 10 High-Yielding Dividend Stocks That Won't Wilt Thus, while investors maybe shouldn't directly extrapolate the Papa Murphy's acquisition to other pizza stocks, they should be aware that certain pizza stocks do have high M&A potential. From this perspective, let's take a closer look at four pizza stocks that are on M&A watch.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Papa John's (PZZA)Source: Shutterstock Of all the publicly traded pizza stocks, the most likely to be an acquisition target in 2019 is Papa John's (NASDAQ:PZZA).Papa John's has had some serious struggles over the past few years, as a lack of innovation coupled with bad press from Papa John himself has created a drag on sales, margins and profits. That's why PZZA stock has been on a multi-year decline.But, the stock is now dirt cheap, at 1.4-times enterprise value-to-sales. Interestingly enough, that's roughly the level where Papa Murphy's was acquired at. It's also the lowest multiple left among publicly traded pizza stocks. Plus, the board room drama with Papa John is over, NBA superstar Shaquille O'Neal has been added to the board, and there's reason to believe a brand turnaround is coming soon.As such, if I were a private equity firm, now would be a really good time to take a bite out of PZZA stock. RAVE Restaurant Group (RAVE)Source: Shutterstock The second most likely pizza chain to be acquired in the foreseeable future is RAVE Restaurant Group (NASDAQ:RAVE).Dallas-based RAVE Restaurant Group owns and operates two pizza chains, Pizza Inn and Pie Five Pizza. In total, the company's pizza chain footprint measures around 270 locations all across the world. Only one of those stores is company-owned. The rest are licensed. This asset-light business model should ultimately prove attractive to a potential buyer. * 6 Cheap Stocks That Cost Less Than $10 On top of a license-heavy model, operations at RAVE aren't bad (comparable sales were mildly positive last quarter), margins are an issue but improving, and the stock is pretty cheap at 2-times enterprise value-to-sales. As such, if a buyer thinks they can come in and cut costs without dramatically impacting sales to produce sizable profits, then RAVE stock could fetch a big offer in the foreseeable future. Domino's Pizza (DPZ)Source: Shutterstock The hottest pizza stock over the past several years has been Domino's Pizza (NYSE:DPZ).Much unlike its peers on this list, Domino's has leveraged technology integration and menu innovation to drive consistently positive comparable sales growth. This has led to healthy revenue growth, strong margin expansion and robust profit growth. That's why DPZ stock has rallied 250% over the past five years.But, the stock is no longer that cheap at 4.2-times enterprise value-to-sales. Plus, given recent out-performance, investors would require a huge premium to even consider a takeover offer. That would imply an offer somewhere around $15 to $20 billion. That's a bit steep as far as pizza chain M&A is concerned.All in all, then, DPZ is a winning stock. But, the likelihood this company is acquired in the foreseeable is very low. YUM! Brands (YUM)Source: Shutterstock Falling in the same boat of winning pizza stock but unlikely M&A candidate is Pizza Hut, which is already owned by YUM! Brands (NYSE:YUM).After Domino's, the second most successful pizza chain over the past several years has been Pizza Hut. The chain struggled for a while, but recently has been getting its groove back amid a series of operational improvements, including store remodels, menu innovations and distinct marketing. The sum of these initiatives powered flat comparable sales growth last quarter and last year, and current trends imply that positive growth is due next year. * 7 Strong Buy Stocks the Street Loves That means YUM stock should go higher from here. But, it also means that the likelihood of YUM getting a takeover offer are next to zero. This is a $30 billion-plus company trading at 7-times enterprise value-to-sales. No buyer is interested in that. As such, when it comes to M&A upside in pizza stocks, YUM stock has very little.As of this writing, Luke Lango was long DPZ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post 4 Pizza Stocks On M&A Watch appeared first on InvestorPlace.
Starbucks' (SBUX) second-quarter fiscal 2019 results are likely to be driven by new store additions and robust performance of the China-Asia-Pacific and Americas segments.
BJ's Restaurants' (BJRI) various sales-building initiatives are likely to aid first-quarter revenues. High costs may affect earnings.
There are no carnival rides and funnel cakes at a job fair, but there will be food and fun at nearly 600 Taco Bell hiring parties next week.
Will Domino’s Pizza Outperform Analysts’ Expectations in Q1 2019?(Continued from Prior Part)Analysts’ estimatesOf the total 21 analysts who cover Domino’s Pizza (DPZ), 71.4% have given the stock “buy” recommendations, while 28.6% have
Will Domino’s Pizza Outperform Analysts’ Expectations in Q1 2019?(Continued from Prior Part)Analysts’ estimatesAnalysts expect Domino’s Pizza (DPZ) to post adjusted EPS of $2.09 in the first quarter of 2019, which represents a rise of 4.4%
Will Domino’s Pizza Outperform Analysts’ Expectations in Q1 2019?(Continued from Prior Part)Analysts’ expectationsAnalysts expect Domino’s Pizza (DPZ) to post revenue of $849.2 million in the first quarter of 2019, a rise of 8.1% from
Will Domino’s Pizza Outperform Analysts’ Expectations in Q1 2019?Stock performance Domino’s Pizza (DPZ) will announce its first-quarter earnings results before the market opens on April 24. On April 16, the company was trading at a stock price
Domino's (DPZ) top line in first-quarter 2019 is likely to be driven by increase in sales at domestic and international stores.
Chipotle's (CMG) sales-building initiatives and greater digital innovation are likely to result in revenue growth in the first quarter of 2019.
Maxim Group maintained its buy rating of the company, citing expected solid growth in the first quarter and margin expansion, according to Briefing.com.
Since YUM! Brands, Inc. (NYSE:YUM) released its earnings in December 2018, it seems that analyst forecasts are fairly bearish, w...
Shares of fast casual Mexican eatery Chipotle (NYSE:CMG) have been on a tear since February of 2018. At that point in time, Chipotle stock bottomed at $250 before former Taco Bell executive Brian Niccol took over as CEO.Source: Shutterstock Ever since, Niccol has executed flawlessly on multiple growth initiatives, the sum of which have driven Chipotle to report its best numbers ever since the infamous E. coli outbreak. Consequently, CMG stock has nearly tripled over that same stretch, and today finally trades near its pre-E. coli highs.Although the Chipotle turnaround is very real, and the company is firing on all cylinders, this mega-rally in CMG stock may be on its last legs.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy? Many reasons, ranging from valuation to slowing growth concerns. Put together, all these concerns paint an outlook for CMG stock that isn't all that great. * 7 AI Stocks to Watch with Strong Long-Term Narratives With that in mind, let's take a look at four reasons to sell CMG stock on this big rally. Too Far, Too FastBroadly speaking, CMG has simply come too far, too fast.The stock has nearly tripled over the past fourteen months. That's a big rally on its own, but a big portion of this rally has happened recently, with the stock up 85% since Christmas 2018. That's a near 100% rally in just over three months.Because of this big rally, Chipotle stock is now in technically overbought territory, with a Relative Strength Index that is as high as its been pretty much ever and a stock price that is nearly as far as its ever been above its 200-day moving average.All of these overbought conditions, and the stock is heading into earnings season. That means the numbers need to be really good in order for the stock to hold onto its gains. If they aren't really good, the stock could drop in a big way. Valuation FrictionI follow a lot of stocks, and Chipotle is now close to being the most richly valued restaurant stock I've ever seen that isn't growing revenues at a 20%-plus rate.Chipotle stock trades at nearly 60-times forward earnings. The giants in this space, like McDonald's (NYSE:MCD), Yum (NYSE:YUM), Jack in the Box (NASDAQ:JACK), and Domino's (NYSE:DPZ), trade around 20- to 30-times forward earnings. The sector average forward multiple is 24.To be sure, the fast growers like Shake Shack (NYSE:SHAK) and Wingstop (NASDAQ:WING) trade around 100-times forward earnings, but both of those companies are projected to do 20%-plus revenue growth this year. Chipotle is projected at a much more mundane 9% sales growth this year, which is pretty much the same as McDonald's and Domino's.True, there is a big margin expansion narrative at play here, but even if you model that narrative out, there still isn't enough long term profit power here to justify a $700-plus price tag. Economic Slowdown and Chipotle StockAlthough stocks are rallying to all time highs, the economy is still slowing, U.S. consumer sentiment is still below where it was for most of 2018, and sales across the restaurant industry haven't been all that great to start 2019.Inevitably, this slowdown will catch up to Chipotle. The company is firing on all cylinders right now thanks to digital business expansion, menu innovations, and a new marketing campaign. But, those tailwinds will cool in 2019 as they mature and come against tougher laps. When that happens, a slowing economy will start to show up in Chipotle's numbers, and that could have a materially negative impact on the stock. Mysterious E. coli OutbreakTo be clear, there has been an E. coli outbreak in the United States, a source has not been identified, and Chipotle hasn't been mentioned by any reports. It's also highly unlikely that Chipotle is the source of this outbreak.Having said that, there is an E. coli outbreak happening right now, and the last major E. coli outbreak in the U.S. was Chipotle's fault. I don't think consumers have entirely forgotten that. Consequently, when consumers hear E. coli outbreak today, they naturally get a little bit worried about Chipotle. This worry may have a negative impact on the numbers in April and May, and that could provide a drag on Chipotle stock.As of this writing, Luke Lango was long MCD and DPZ. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? Compare Brokers The post 4 Reasons to Sell Chipotle Stock While It Still Is Riding High appeared first on InvestorPlace.
Uber Technologies Inc's restaurant delivery business has grown revenue to $1.5 billion in just three years, the company disclosed in its IPO filing on Thursday, dwarfing the revenue of its profitable, and already public, rival Grubhub Inc. Uber also spelled out the struggle its food delivery business faces: "Cumulative payments to drivers for Uber Eats deliveries historically have exceeded the cumulative delivery fees paid by consumers," it said. Uber Eats, and its rivals DoorDash and Postmates - who are also candidates for initial public offerings (IPOs) - are offering discounts and incentives to diners and restaurants in a race to grab the biggest piece of online restaurant delivery sales that investment firm William Blair & Co expects to grow to $62 billion in 2022 from around $25 billion today.
In an effort to stand out in a wildly competitive job market, Taco Bell is applying the same kind of whimsy that customers usually see in the chain’s marketing campaigns to something far more routine: job applications. Taco Bell’s hiring parties, first tested last summer in four company-owned locations in Indiana, have been a welcome […]
Has Domino’s Stock Bottomed Out?(Continued from Prior Part)Analysts’ expectation For 2019, analysts expect Domino’s Pizza (DPZ) to post adjusted EPS of $9.38, which represents a rise of 11.4% from EPS of $8.42 in 2018. The revenue growth,
Has Domino’s Stock Bottomed Out?(Continued from Prior Part)Analysts’ recommendationsOf the total 21 analysts that cover Domino’s Pizza (DPZ), 66.7% are favoring a “buy” rating, while 33.3% are favoring a “hold” rating. None of the
Has Domino’s Stock Bottomed Out?Stock performance As of April 8, Domino’s Pizza (DPZ) was trading at $247.5, which represents a fall of 11.1% since the announcement of its fourth-quarter earnings on February 21. Also, the company is trading at a
The CEO of Yum Brands Inc. got a 13 percent compensation increase last year, but not all of the company's top executives were so fortunate. CEO Greg Creed's total compensation rose to $14 million in 2018, according to the company's proxy statement filed ahead of its May 16 annual meeting.
Taco Bell is testing a three-item vegetarian menu at nearly 200 Dallas restaurants, Nation’s Restaurant News reported. Two new items, the Vegetarian Crunchwrap Supreme and the Vegetarian Quesarito, will join the 7-Layer Burrito on the special menu. Taco Bell's food choices already include 38 vegetarian ingredients, 28 of them also vegan, the company said.
GPS Hospitality is adding some dough to its franchise portfolio through a deal with Pizza Hut's parent company.