YUM - YUM! Brands, Inc.
| Previous Close | 110.27 |
| Open | 110.61 |
| Bid | 0.00 x 800 |
| Ask | 0.00 x 900 |
| Day's Range | 110.02 - 110.71 |
| 52 Week Range | 77.09 - 111.06 |
| Volume | 1,023,958 |
| Avg. Volume | 1,442,993 |
| Market Cap | 33.859B |
| Beta (3Y Monthly) | 0.42 |
| PE Ratio (TTM) | 26.02 |
| EPS (TTM) | 4.25 |
| Earnings Date | Aug 1, 2019 |
| Forward Dividend & Yield | 1.68 (1.52%) |
| Ex-Dividend Date | 2019-05-15 |
| 1y Target Est | 104.76 |
- Yahoo Finance Video•4 days ago
KFC unveils its limited-edition Cheetos chicken sandwich
KFC is rolling out a limited-time dish: the Cheetos chicken sandwich. Yahoo Finance's Seana Smith, Heidi Chung, and Emily McCormick discuss.
- Yahoo Finance Video•13 days ago
UBS: McDonald's will maintain dominance in the fast-food industry
A new UBS report says McDonald's is still dominant in the fast-food space. This as Evercore initiates coverage of McDonald's, Chipotle and Yum Brands all with "outperform" ratings. Yahoo Finance's Seana Smith and Heidi Chung discuss.
- Zacks•8 hours ago
What's Next for McDonald's (MCD) Stock as Industry Dives into Plant-Based Meat?
Shares of McDonald's (MCD) have jumped 15% this year to outpace its industry's 10.5% climb. With this in mind, let's see what's next for the historic fast-food burger powerhouse...
- Investopedia•2 days ago
The World's 10 Biggest Restaurant Companies
The world's 10 biggest restaurant companies, arranged by market capitalization—from McDonald's to Brinker International—are mostly chain operations.
- American City Business Journals•4 days ago
Pizza Hut is returning to its old logo — here’s why
America’s first pizza chain is reversing course on its branding to reinforce itself as the “OG” of pizza. Pizza Hut, a subsidiary of Louisville-based Yum Brands Inc. (NYSE: YUM), is bringing back its red-roof logo with thick, black lettering that was used from 1967 to 1999. The Plano, Texas-based pizza giant was founded in 1958 — two years before Domino's Pizza Inc. and 26 years before Papa John’s International Inc. — and executives say it is time to build on that legacy.
- InvestorPlace•4 days ago
Watch for a Bubble as Beyond Meat Stock Begins to Cool
Did Beyond Meat (NASDAQ:BYND) just begin a cooldown? The Beyond Meat stock price fell from over $200 per share to around $165 per share as one restaurant chain opted not to include its plant-based meat on their menu. This ended a meteoric rise in the stock from when it launched its IPO in early May.Source: Shutterstock Whether this constitutes profit-taking or a sustained move down remains unclear. However, given its current multiple and the lack of a catalyst to take BYND further, investors should probably stay away. A Closer Look at Beyond Meat StockBeyond stock fell as Yum! Brands (NYSE:YUM) restaurant chain Taco Bell announced that they would stay with their current vegetarian options. This also stopped the momentum that had taken BYND stock to more than eight times its IPO price in less than two months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMany might see this drop as a "buying opportunity." With an increased focus on healthy food, this could well be just the beginning for plant-based meat products. Moreover, even for traders who see the run-up as concerning, Taco Bell's decision not to go with Beyond Meat does not justify such a drop.Beyond Meat counts many prominent restaurant chains as clients. Del Taco Restaurants (NASDAQ:TACO) reported that they sold about two million Beyond Meat tacos since April. Consequently, they will add two burritos featuring the meat substitute. Plant-based meat has also found its way on the menus of other restaurants. Both Carl's Jr. and TGI Friday's feature items with Beyond Meat products.Beyond Meat stock also benefits from its status as the only stock in this nascent industry. Its most direct peer, Impossible Foods, remains private. Tyson Foods (NYSE:TSN) also plans to offer a plant-based protein of their own, though they have not introduced such a product. Watch the ValuationStill, before placing buy orders on Beyond Meat, traders need to exercise caution. Several analysts have turned on BYND stock due to valuation concerns, and analysts project losses until at least next year. Most investors can understand this as Beyond Meat trades at around 87 times sales!Many might also question the $10 billion market cap. Wall Street predicts $204.97 million in revenue for the year. Even if the 63.5% revenue growth rate for 2020 comes to pass, prospective buyers need to act cautiously in such cases.Investors should also note that hot stocks take on higher risk in the food industry. Hot tech stocks tend to support higher multiples over long periods, making stocks with high valuations less risky. However, food industry stocks rarely gain premium price-to-earnings (PE) ratios or attention.Tyson trades at less than 14 times earnings. Also, Food wholesalers tend to trade at multiples in the teens, lagging S&P 500 averages. Should Beyond Meat lose its sizzle, it could easily fall to such multiples.Moreover, investors may have other stock choices in this industry soon. Impossible Foods does not plan an IPO so far. Still, the success of BYND stock could change those plans. Further, as Tyson or other food producers enter the business, some investors might opt for those stocks. Final Thoughts on Beyond Meat StockThe multiple on Beyond Meat stock makes the equity unpredictable. The plant-based meat industry could amount to a game-changer in the food industry. Consequently, traders have bid the price-to-sales multiple on the equity into the stratosphere.However, while the stock might trade at higher levels years from now, the short and medium term could become challenging. In most cases, failure to gain a customer such as Taco Bell would not have led to such a massive selloff in an equity. Still, with no obvious catalyst to take it beyond current levels, Beyond Meat could fall.Moreover, seeing the stock trade at more than 87 times sales indicates a likely bubble. Most of its industry peers trade at multiples below S&P 500 averages. If BYND falls due to a turn in sentiment, it could leave investors underwater in this equity for years.As we just saw with Beyond Meat stock recently, speculation in hot stocks can bring tremendous returns. However, at this point, such investors might fare better in an equity with more potential upside than BYND stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits Compare Brokers The post Watch for a Bubble as Beyond Meat Stock Begins to Cool appeared first on InvestorPlace.
- InvestorPlace•4 days ago
KFC Cheetos Sandwich to Debut Nationwide on July 1
A KFC Cheetos Sandwich may not be what customers were expecting, but it's what they are getting.Source: Shutterstock The KFC Cheetos Sandwich will be launching at the chain's restaurants across the U.S. starting on July 1. The announcement was made by Yum Brands' (NYSE:YUM) KFC on its Twitter (NYSE:TWTR) account Thursday.Chester Cheetah, the official Twitter account for the cheesy snack, was also out promoting the new sandwich with a Tweet. There's also a KFCCheetosSandwich hashtag that customers can use to share their opinions on the merging of the two foods.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd share they did. This is what some Twitter users are saying just about the idea of a KFC Cheetos Sandwich. * "alright, if this was HOT cheeetos you might of been on too something." * "chester i love you. But this is unholy. The sandwich gods are weeping." * "You were so preoccupied with whether or not you could, you never stopped to think if you should." * "I think you were trying to find your own Doritos los Tacos and I think you've failed spectacularly." * "Why the fuck would you ever pay for this? You can literally make this yourself alone in your college dorm at 2am on a Tuesday while in your underwear that you just got honey BBQ sauce on. Get it together, @kfc!" * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 This isn't actually the first time that the KFC Cheetos Sandwich has been on the menu. The strange combination showed up in select stores for a limited test run earlier this year. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Dow Jones Stocks to Buy for the Rest of 2019 * 5 Boring Stocks to Buy This Summer * 7 S&P 500 Stocks to Buy With Little Debt and Lots of Profits As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post KFC Cheetos Sandwich to Debut Nationwide on July 1 appeared first on InvestorPlace.
- Benzinga•5 days ago
Beyond Meat Expands Partnership With Del Taco, But Won't Be Coming To Taco Bell
The plant-based meat alternative craze is making its way to one taco chain. Expanding At Del Taco Del Taco Restaurants Inc (NASDAQ: TACO ) announced Thursday an expanded partnership with Beyond Meat Inc ...
- Yahoo Finance•6 days ago
Taco Bell is testing plant-based proteins
The hype around plant-based proteins is hot, and Taco Bell is looking to jump on the bandwagon.
- American City Business Journals•6 days ago
FIRST LOOK: KFC debuts new flagship restaurant in Louisville (PHOTOS)
The new flagship store in Hikes Point will have a distinct design you can find at only four other locations in the country.
- Investopedia•7 days ago
Fast Food Stocks Flying High in 2019
Shares of YUM! Brands and Wingstop are matching McDonald's torrid 2019 performance, lifting to all-time highs.
- InvestorPlace•7 days ago
Free Taco Bell 2019: How to Get Free Doritos Locos Tacos Today
Free Taco Bell 2019 is here from the Yum Brands (NYSE:YUM) restaurant chain and we have all you need to know about it.Source: Mike Mozart via FlickrHere's what customers need to know about the free Taco Bell 2019 offer. * The offer is available today due to a game being stolen during the NBA Finals. * That means that one team beat another while playing on the opponent's court. * This is due to the Golden State Warriors defeating the the Toronto Raptors in Game 2 on their home turf. * This allows customers to get one free Doritos Locos taco today. * The offer is available at the chain's stores starting at 2:00 p.m. and lasting until 6:00 p.m. * Customers can also take advantage of the free Taco Bell 2019 offer by using the chain's app. * This allows users to order the free Doritos Locos taco anytime today. * When using the app, customers can order for pay ahead or pickup. * However, customers can not use to app to get the free Doritos Locos tacos if they are ordering delivery. * The app also requires the user to register in order to be able to redeem the free Taco Bell 2019 offer. * Another stipulation of the offer is that customers can not make any changes to the taco, such as making it supreme or customizing it. * This offer is good for all participating Taco Bell locations in the 50 United States and in the Washington D.C. area as well. * 5 Stocks to Buy for $20 or Less You can follow this link to learn more about the free Taco Bell 2019 offer.InvestorPlace - Stock Market News, Stock Advice & Trading Tips More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Free Taco Bell 2019: How to Get Free Doritos Locos Tacos Today appeared first on InvestorPlace.
- Moody's•8 days ago
Yum! Brands Inc. -- Moody's announces completion of a periodic review of ratings of Yum! Brands Inc.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Yum! Brands Inc. New York, June 17, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Yum! Brands Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
- Yahoo Finance•8 days ago
Dunkin' taps Grubhub for massive new delivery rollout
Dunkin' enters the fast-food delivery craze.
- PR Newswire•8 days ago
Back By Popular Demand, Cheesy Bites Pizza Pulls, Dips And Pops Its Way Back Onto Pizza Hut Menus For A Limited Time
Temps are rising and so is your appetite for the iconic Cheesy Bites Pizza, back just in time for you to pull, dip and pop your way to a cheesier you. "Only Pizza Hut can bring you a bold creation and epic pizza-eating experience like Cheesy Bites Pizza," said Marianne Radley, chief brand officer, Pizza Hut. "Pizza meets party with this all-time fan favorite, which lets you and your friends soak up some much-needed Vitamin Cheese all.
- Investopedia•9 days ago
Fast-Casual Vs. Fast-Food: What's the Difference?
Fast-casual is a subset of the restaurant industry that sits somewhere between fast-food and fine dining, and the concept has caught on with the American public.
- Insider Monkey•11 days ago
Is Yum! Brands, Inc. (YUM) A Good Stock To Buy?
The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]
- Zacks•11 days ago
Beyond Meat Gets Beefier as Competition Heats Up
Beyond meat has tweaked its formula to make its meat substitute meatier but the increased competition is starting to take prices down.
- Barrons.com•11 days ago
An Amazon Exit Gives Grubhub Stock the Boost It Needs
Grubhub’s stock, well off 2018 highs, popped on the news that Amazon was exiting the food-delivery business. Can it continue to rise?
- Benzinga•12 days ago
KFC Is Trialing Vegan Version Of Its Chicken Burger
KFC, a subsidiary of Yum! Brands, Inc. (NYSE: YUM ), will trial a vegan version of its original recipe fillet sandwich. KFC said the “Imposter” will be available in selected restaurants in London, Bristol ...
- Reuters•12 days ago
Yum Brands' KFC testing vegan 'chicken' burger in UK
Yum Brands Inc's KFC is looking to tap into the popularity of plant-based protein foods by rolling out a vegan version of its classic chicken burger at some outlets in the UK. The new burger, called "the Imposter Burger", will have a fillet made from a meat substitute product, Quorn, instead of its classic chicken breast fillet, the company said in a statement on Thursday. Plant-based substitutes for meat have been all the rage as more people shift towards vegan or vegetarian diets, amid growing concerns about health risks from eating meat, animal welfare and the environmental hazards of intensive animal farming.
- InvestorPlace•12 days ago
6 Mouth-Watering Fast Food Stocks for Growth Investors
The fundamentals supporting fast food stocks are healthy today, and project to remain healthy for the foreseeable future. That's why I'm bullish on a select list of fast food stocks here and now.Favorable fundamentals will drive out-sized profit growth for these companies, and that growth will push their stocks higher over the next several months and years.Here's the fundamental backdrop. You have a healthy U.S. economy with low unemployment, big wage gains, low borrowing rates, and high consumer confidence. Putting all that together, the U.S. consumer today is about as healthy and as prone to spend as ever.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, consumers are increasingly fixated with elevated convenience and fast service, so they are increasingly drawn to fast food chains. These fast food chains are simultaneously re-inventing their menus to be more relevant, including incorporating healthier and trendier items like plant-based burgers. They are also improving the ordering process to be more convenient, and those improvements center around pairing up with online food ordering and delivery services.All in all, the fundamentals supporting fast food stocks are quite favorable. Stronger consumers coupled with smarter menu innovation and a strong delivery buildout equals strong growth for fast food chains. * 7 U.S. Stocks to Buy With Limited Trade War Exposure With that in mind, let's take a look at 6 fast food stocks to buy for healthy gains over the next several quarters. Fast Food Stocks to Buy: McDonald's (MCD)Source: Shutterstock At the top of this list, we have McDonald's (NYSE:MCD), the king of the fast food industry that has been king for a long time, and projects to remain king for a lot longer thanks to its continued market-leading innovation.On the menu front, McDonald's has refreshed its menu from head to toe over the past several years. The company pioneered the All-Day Breakfast trend. They then introduced more chicken items onto the menu and more premium meat offerings.They've run promotions such as 2-for-$5, which have been huge successes. They've also incorporated bacon into their classic offerings. The company has also dabbled in the plant-based meat craze, offering the plant-based Big Vegan TS in 1,500 restaurants in Germany in April.Meanwhile, on the convenience front, McDonald's has rapidly scaled its presence in the delivery world. By most metrics, McDonald's now has one of the biggest delivery presences of any fast food chain. Also, McDonald's has integrated technology into its ordering processes. Many in-store ordering kiosks are now touch-screen, self-order kiosks.All in all, McDonald's has continued to improve its menu and service over the past the several months and years. These improvements put the company in a favorable position to grow for the foreseeable future as the U.S. consumer economy picks up steam. Yum (YUM)Source: Mike Mozart via FlickrNext, we have Yum (NYSE:YUM), the parent company of KFC, Taco Bell and Pizza Hut.With respect to menu innovation, Yum has done very well. Taco Bell is perhaps the market leader in menu innovation, seemingly rolling out a new, millennial-focused food item every few weeks.Taco Bell has also created ad campaigns to accompany those menu adds (see this Nacho Fries ad), and those campaigns only add to their appeal. KFC and Pizza Hut have been relatively light on the menu innovation front but have still kept their menus up-to-date with current consumption trends. KFC is also thinking about incorporating plant-based options on its menu, too.On the convenience front, Yum has also rapidly expanded its delivery capability through a big partnership with GrubHub (NYSE:GRUB). Those delivery efforts for Taco Bell and KFC are still in their early days, with positive early reception and momentum. As such, the delivery expansion tailwind should remain vigorous for the foreseeable future. * 7 High-Quality Cheap Stocks to Buy With $10 In sum, Yum's unique marketing and menu innovation, coupled with delivery build-out at Taco Bell and KFC, should help drive healthy sales and profit growth over the next several quarters. Jack in the Box (JACK)Source: Rojer via Flickr (modified)The third fast food stock which looks ready to rally is Jack in the Box (NASDAQ:JACK).On the menu front, Jack in the Box has taken a unique and strategic approach to wallet share expansion and promotions. With respect to winning wallet share, Jack in the Box didn't just invent new menu items - they invented an entire new mealtime, which they dub "late-night". This late-night menu caters to those who get hungry well past dinner hours, and in creating this menu, Jack in the Box has won consumer wallet-share. Meanwhile, Jack in the Box is finally figuring out how to create discounted combos which offer great value to the consumer without cutting into margins.Meanwhile, like many of the other chains on this list, Jack in the Box has rapidly scaled out its delivery capabilities over the past few years. At the end of last quarter, roughly 90% of all Jack in the Box locations were serviced by at least one delivery service. Thus, as the delivery market gains traction over the next several years, Jack in the Box will be fully levered to that growth, and consequently grow with the market.Overall, Jack in the Box's unique approach to menu additions and promotions, on top of its already huge delivery network, gives the stock a healthy growth outlook over the next several quarters. Shake Shack (SHAK)Source: Abdullah AlBargan via Flickr (Modified)Next up, we have rapidly expanding premium fast casual chain Shake Shack (NYSE:SHAK).Shake Shack seems to really understand the importance of menu innovation. The company actually has a dedicated kitchen - dubbed the Innovation Kitchen - for testing and developing new products and LTOs (limited time only offerings). This Innovation Kitchen has cooked up some big new menu adds over the past few months, including Chick'n Bites and new unique shake flavors like tiramisu. So long as Shake Shack keeps pouring resources into the Innovation Kitchen - and so long as that Innovation Kitchen keeps pumping out exciting, new menu adds - Shake Shack's comparable sales performance should remain healthy.With respect to elevated convenience, the delivery business is rapidly scaling, and the company is doing everything it can to optimize that delivery business. Shake Shack is refreshing many of its stores to allow for a more streamlined and efficient pick-up process. All the new units are also being built with this in mind, too. * 7 Dividend Stocks That Are Worth Your Money Broadly, Shake Shack continues to put menu innovation and digital convenience at the forefront of its growth narrative, and in so doing, exposes itself to big growth potential over the next several years. Domino's Pizza (DPZ)Source: Shutterstock One of the more interesting fast food stocks on this list is Domino's Pizza (NYSE:DPZ).On the menu front, Domino's - like many of its peers on this list - is one of the more innovative chains in the fast food world. Domino's started off as a pizza parlor. They are so much more than that now. The menu today includes pasta, chicken, sandwiches, and more. Further, Domino's has been very innovative with its marketing, including doing things like fixing pot holes so consumers don't drop their pizzas. In sum, these menu adds and marketing have kept Domino's atop the pizza game by a wide margin.The convenience story is a bit different. Unlike the other chains on this list, Domino's didn't just build out its delivery business. Domino's has been a delivery business for a long time. As such, the macro-delivery tailwind isn't really a tailwind at all for Domino's. Instead, it translates into more competition in the delivery space.Nonetheless, DPZ's sustained dominance atop the pizza market has enabled it to offset increased delivery competition, and the company has reported healthy comps for the past several years. So long as this remains true, DPZ stock should march higher. Restaurant Brands International (QSR)Source: Shutterstock Last, but not least, on this list of fast food stocks to buy is Restaurant Brands International (NASDAQ:QSR), the parent company of Tim Hortons, Popeye's, and Burger King.Menu innovation has been core to each three of QSR's big chains. Tim Hortons introduced multiple new items to its menu in 2018, including several new hot and cold beverages. Tim Hortons also rolled out Breakfast Anytime. Over at Popeye's, management has relied on LTOs and promotions to drive continued positive comps, such as the $5 tackle box and $5 shrimp offer. Meanwhile, Burger King is on the cutting edge of plant-based meat, and has already launched Impossible Whoppers, which have created a huge traffic surge at participating locations.With respect to convenience, QSR has invested in all the right things to maximize consumer convenience. The company has built out its delivery network to span about half of all its U.S. restaurants. The company has also invested big into self-order kiosks, mobile app ordering, and digital menu boards. * 7 Stocks to Buy for the Coming Recession Net net, QSR has done everything right over the past several quarters on the menu innovation and consumer convenience fronts, and those right moves lay the groundwork for QSR stock to rally over the next several quarters.As of this writing, Luke Lango was long MCD, GRUB and DPZ. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post 6 Mouth-Watering Fast Food Stocks for Growth Investors appeared first on InvestorPlace.
- InvestorPlace•12 days ago
Dave & Buster’s Is Coming Back, so Buy the Dip in PLAY Stock
Shares of Dave & Buster's (NASDAQ:PLAY) dropped sharply in mid-June after the arcade and themed dining owner reported first-quarter numbers that fell well short of expectations. At the same time, management reduced its full-year revenue and profit guides. Investors were disappointed. PLAY stock dropped more than 20%.Source: Shutterstock This big sell-off, though, is overdone, and with PLAY stock hovering around $40, the medium- to long-term bull thesis looks very compelling here.To be sure, the first quarter numbers weren't good. Comparable sales growth was negative. Revenue growth dropped below 10% for the first time in a long while. Margins compressed meaningfully. Profits growth came in at a multi-quarter low.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Quality Cheap Stocks to Buy With $10 But, if you zoom out, the long term trends here remain favorable. The shift towards an experience economy resonates well for Dave & Buster's comparable sales growth going forward.The unit growth trajectory remains favorable, and Dave & Buster's still projects to grow its unit base by 10% per year over the next several years. Margin compression is moderating and margins should ultimately stabilize.All in all, then, while the near term trends are negative, the long term trends are still positive. Against that backdrop, PLAY stock is trading at its cheapest valuation in recent memory. That combination ultimately paves the way for a huge rebound rally in PLAY stock over the next several months. The Near Term Is UglyThe situation at Dave & Buster's can broadly be summed up in one phrase: it's ugly right now, but it's pretty in the big picture.Right now, things are ugly for the themed dining restaurant and arcade. Comparable sales dropped 0.3% in the quarter, on top of a 4.9% drop last year, so comps are down more than 5% on a two-year basis. That's not good.Further, comps are expected to drop 0.5% this year, versus a 1.6% drop last year, so down more than 2% on a two year basis. That's not good, either. At the same time, margins are compressing, as the adjusted EBITDA margin has fallen by more than 100 basis points year-over-year for three straight quarters.The net result? Profit growth is being muted. A few years back, this was a consistent 20%-plus profit grower. Last quarter, D&B reported just 8.8% profit growth. The Long Term Is PrettyBut, if you zoom out, things are still pretty in the big picture.Most importantly, the experience economy continues to gain mainstream traction, and consumers are increasingly upping spend on experiences.This pivot towards experience-focused consumption benefits Dave & Buster's, since going to D&B is broadly seen by consumers as a fun experience that combines dining and gaming for a fun night out.That's why D&B comps were up 7.3% in 2014, 8.9% in 2015, and 3.3% in 2016. Comps did fall flat in 2017, and have retreated ever since, but that appears to just be normalization after a red hot streak in the middle of the decade.As the laps get easier, the comparable sales growth trend will improve, because the company is aligned with the secular shift towards an experience economy.Further, Dave & Buster's still only operates 127 stores. Management thinks the long term opportunity is 230 to 250 stores. Thus, this company can and will continue to grow its store base by 10% per year for the next several years.Meanwhile, margins are falling, but by less and less each quarter, so margin stabilization seems to be coming in the near future. Once comps improve, margins should improve, too.Overall, then, while negative comps and margin compression is the norm today, it won't be the norm forever. The long term norm here is positive comps and stable margins. D&B will get back to that soon, and when they do, PLAY will rally in a big way. Dave & Buster's Stock Has Big Upside PotentialFollowing the huge post-earnings slide, PLAY now trades at its cheapest valuation in recent memory with a mere 13-times forward earnings multiple.That's dirt cheap for the restaurant sector. The average forward earnings multiple in the restaurant sector is 25. McDonald's (NYSE:MCD) trades at 25-times forward earnings. Yum (NYSE:YUM) trades at 28-times forward earnings. Jack in the Box (NASDAQ:JACK) trades at 20-times forward earnings.More importantly, this valuation discrepancy has nothing to do with growth potential. The average long term earnings growth rate across the restaurant sector is just over 10%. Dave & Buster's will drive 10% unit growth alone over the next several years.Assuming comps come back into slightly positive territory and margins stabilize, that 10% unit growth will produce profit growth well in excess of 10%.Thus, Dave & Buster's has a bigger forward growth trajectory than the average restaurant company, and yet PLAY trades at a huge discount to the average restaurant stock.This disconnect makes no sense and won't last forever. But, while it does last, investors should take advantage of it. This stock has tremendous upside potential from here in the medium to long term. Bottom Line on PLAY StockDave & Buster's had a bad quarter. But, the long term growth trajectory here remains favorable. As such, with PLAY stock plunging and trading at its cheapest valuation in recent memory, now seems like a good time to take advantage of near term weakness.In the medium to long term, PLAY stock will head considerably higher from here.As of this writing, Luke Lango was long PLAY and MCD. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Dave & Buster's Is Coming Back, so Buy the Dip in PLAY Stock appeared first on InvestorPlace.
- Yahoo Finance•13 days ago
McDonald’s remains brand favorite among consumers: UBS survey
Fast-food companies have been facing a lot of challenges in order to stay relevant among consumers, but McDonald's is poised to continue its dominance, according to a new survey.
- TheStreet.com•13 days ago
McDonald's, Yum Brands, Chipotle Climb Following Evercore Initiation
were rising Wednesday after analysts at Evercore initiated coverage on the fast-food restaurants with bullish ratings and price targets. McDonald's was initiated with an outperform rating and $225 price target, which represents an 11% upside from its previous closing price. "McDonald's stock and its company have come a long way in the transformation under Steve Easterbrook since 2015, and to some degree we believe this is already recognized with the stock trading at 23.8x 2020 EPS," the note read.
