In the beginning, there was the griddle.
And the fryer. And the charbroiler, of course.
The chef standing over the griddle monitored the burgers or the eggs. The chef standing over the charbroiler monitored the chicken or the steak. The chef standing over the fryer shook up the fries and onion rings.
The restaurant industry has seen a lot of growth but there are challenges ahead. Consumers have been hit with a new payroll tax this January. In response, many have scaled back on dining out. So investors need to be extra careful when looking at this industry for investment opportunities. There may be one that still fits the bill.
Three CEO's girded for battle but only one comes out. Welcome to the ring, Sally Smith of Buffalo Wild Wings (NASDAQ: BWLD), Elizabeth Smith, Esq. of Bloomin' Brands (Nasdaq: BLMN), and Julie Stewart of DineEquity (NYSE: DIN), CEO's of three casual dining chains. OK, they're not hairnetted lunch ladies, but top executives of companies with market caps between 1 and 2 billion armed only with spreadsheets and more »
Our database of insider trading filings shows two members of Cheesecake Factory (NASDAQ: CAKE)’s Board of Directors bought shares in the past week. David Pittaway directly purchased 1,000 shares while a trust connected to Herbert Simon bought 20,000 shares; these purchases generally took place between $34 and $35. Studies show that insider purchases are bullish signals, while stocks bought by multiple insiders are particularly likely- though not more »
Editor's Note: The metrics, statistics, and prices the author uses in this post were taken from Yahoo! Finance on Feb. 22.
Bloomin’ Brands Inc (NASDAQ: BLMN) completed a successful IPO during August of last year. Actually, the IPO was only successful on the basis that shares rallied $1.97, or 17.9%, to $12.97 after just one week of trading. For those of you who might be unaware more »
As employment levels rise and discretionary incomes increase, Americans are hitting the restaurant scene with greater frequency. However, the majority of people still want value prices and diverse menu choices, as well as healthier food options. The best operators in the casual dining segment stick with a consistent operating theme and build off of a niche customer base. So, which chains are leading in the current marketplace?
An interesting report came out recently. It was by the Hudson Institute Obesity Solutions Initiative, and it dealt with how restaurants can bring lower-calorie meals to their customers. Interesting reading if you're into that sort of thing.
But the most interesting part of the report concerns the study on how restaurants do better when they begin offering healthier, lower calorie meals on their menus. The research – which surprised me more »
A one-day pop is nice, but a multi-day/month rally is better. We can sometimes find these stocks by looking at charts or identifying expectations during an earnings season. Therefore, in this article I am looking at four stocks that look to be breaking out to trade higher.
49 more »
Now that the Alabama Crimson Tide have won the BCS National Championship, I think looking back at all the game sponsors is quite interesting. Utah State beat Toledo in the Great Idaho Potato Bowl and Ohio beat UL-Monroe in something called the AdvoCare V100 Independence Bowl. While you may not have heard of AdvoCare V100, I found 17 sponsors of college bowl games that are publically traded. I thought it more »
If monetary policymakers are right, high U.S. unemployment will persist until 2015. Don't look to the restaurant industry for signs of that weakness because for the most part you're likely to come up empty. Restaurants have been steadily adding jobs at more than twice the pace of the broader U.S. jobs market. That trend is expected to extend into 2013.
Restaurant Jobs vs. U.S. Employment more »
In my article entitled Earnings Preview: Bloomin' Brand I shared with you the one thing that I would be looking for in Bloomin' Brands (NASDAQ: BLMN) latest earnings report. We'll take a look at that in a bit, but right now let's take a look at how they did overall.
Beat the Street
First off, lets talk about something I wasn't looking for specifically. I am typically more »
Bloomin' Brands ) is home to several restaurant favorites in the casual dining sector. In fact, according to some surveys, they have 3 of the top 10 casual dining restaurants in their portfolio, including top dog Bonefish Grill. Other restaurants in their quiver include Outback Steakhouse and Carrabba's.
Since Bloomin' Brands just went public a couple of months ago, the internet isn't completely saturated with financial reports and more »
The tepid economic recovery has slowed the digestion of diners at steakhouses in the United States. Some mid-level and upscale restaurant stocks are reasonably valued while others are richly priced. Investors should wait for valuations to go on a diet before buying shares in an industry facing economic headwinds.
Upscale Eateries: Anemic Growth
A recent article by Forbes caught my eye with its title, “Texas Roadhouse (NASDAQ: TXRH) Dividends and Gains More Than Peanuts”. For those who aren't aware, Texas Roadhouse is a relatively small chain of restaurants that specializes in steaks, burgers, and peanuts at every table. The Forbes article made the point that the company has less than 400 restaurants so there are clearly years of expansion available to the company. In addition, the article mentioned that Texas Roadhouse has beaten earnings estimates each of the last four quarters by an average of about 11%. One thing that is unique about this company is, not only are they growing fast but they already pay a decent sized dividend.
“Behind every great fortune lies a great crime.”
Ethical investing is as fraught with danger as any other form of investing. To be truly ethically invested is to decide what crimes, sins, omissions, and commissions you are unable to stomach including the sin of not making a profit.
Another Fool posted an interesting article on ethical investing and featured fast food restaurants and those companies’ role in furthering obesity. I more »
Since Facebook, several companies have engaged in IPOs. Analysts have been watching for two very important things: What is the level of investor confidence and what impact has the Facebook debacle had on Wall Street? Ever since Facebook's IPO fail, the investor rush to buy into IPOs has cooled considerably.
This wait and see approach has resulted in companies being slow to proceed with IPOs. What is interesting about more »