Thursday, January 15, 2015

5 Best Restaurant Stocks To Watch Right Now

With shares of General Mills (NYSE:GIS) trading around $49, is GIS an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

General Mills supplies branded and unbranded food products to the food service and commercial baking industries. The companys products include ready-to-eat cereals, refrigerated yogurt, ready-to-serve soups, dry dinners, shelf stable and frozen vegetables, ice creams and frozen desserts, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grains, fruit and savory snacks, and various organic products, including granola bars, cereals, and soups. General Mills, Inc. sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, commercial and noncommercial food service distributors and operators, restaurants, and convenience stores, as well as to drug, dollar, and discount chains.

Top Solar Stocks To Buy For 2015: El Pollo Loco Holdings Inc (LOCO)

El Pollo Loco Holdings, Inc., formerly EPL Holdings, Inc., incorporated in 1999, own, operate and franchise restaurants specializing in marinated, flame-grilled chicken. During the fiscal year ended December 28, 2005 (fiscal 2005), the Company's restaurant system had 340 restaurants, consisting of 146 company-operated and 194 franchised restaurants, located principally in California, with additional restaurants in Arizona, Nevada, Texas and Illinois. In fiscal 2005, the Company closed one company-operated and one franchised restaurant and it opened six company-operated and seven franchised restaurants. The Company's restaurant is a freestanding building ranging from approximately 2,200 to 2,600 square feet with seating for approximately 60 customers and offering drive-thru convenience.

The Company's menu features flame-grilled chicken and includes approximately 50 items, most of which it prepares from scratch. The Company serves a range of individual and family-size chicken meals, which include flour or corn tortillas, salsas and a range of side orders, such as Spanish rice and pinto beans. In addition, the Company offers a range of Mexican-inspired entrees featuring marinated, flame-grilled chicken as the central ingredient, including its specialty Pollo Bowl, Pollo Salads, signature burritos, chicken quesadillas, chicken tortilla soup and chicken tacos.

Advisors' Opinion:
  • [By WWW.DAILYFINANCE.COM]

    One of this year's hottest individual public offerings is El Pollo Loco (LOCO). The fast-casual chain specializing in citrus-marinated grilled chicken has seen its stock roughly double since going public at $15 this summer. There have been several eatery IPOs that have gone stale in recent months, but El Pollo Loco has remained strong. That could all change on Thursday when it reports. It will be the market's first taste of the chicken chain as a public company, and naturally expectations are high when a stock doubles out of the gate. Friday -- At the Movies

  • [By WWW.DAILYFINANCE.COM]

    Mark Lennihan/APJack Ma is the founder of Alibaba. There has been no shortage of debutantes on Wall Street lately. Dozens of companies went public last quarter -- many of them names you know, or that you will know soon. These some of the more intriguing initial public offerings to come out of this past quarter. El Pollo Loco (LOCO) Fast casual has been the place to be for investing in the restaurant industry, and that helped pave the way for this California-based chain specializing in citrus-marinated chicken to go public in July at $15 a share. Investors won't be impressed by its slow yet calculated expansion. It had grown from 398 locations to just 401 in the year leading up to its IPO. However, El Pollo Loco's store-level performance has been impressive. It posted a 5.4 percent increase in comparable-restaurant sales in its first quarter as a public company. That is certainly better than the average fast-food or casual-dining chain out there, once again validating the fast-casual model, where chains offer the convenience of fast food but the quality of traditional casual-dining restaurants. Mobileye (MBLY) The push to develop self-driving cars is really getting traction, a fact that became even more apparent last week when Tesla (TSLA) showed off an updated sedan that uses a dozen sensors to do everything from adjusting speed in accordance with speed limit signs when it's on cruise control to switching lanes automatically when the sensors see an opening in traffic after the driver triggers the turn signal. But clever sensors notwithstanding, self-driving cars won't happen without serious software, and that's where Mobileye comes in. The Israeli company provides software and chips for camera-based advanced driver assistance systems. This will likely become a competitive market in the future, but for now Mobileye is seen as a leading pioneer in self-driving vehicles. Its share price has roughly doubled since it went public at $25 just two months ago. Re

  • [By WWW.DAILYFINANCE.COM]

    christianz1969/Flickr Americans lately have been transferring their love of fast-casual restaurant food to stocks of companies in the segment. Late last month, "better burger" specialist The Habit Restaurants (HABT) launched an initial public offering that doubled in price within hours of hitting the market. Like a meal from one of The Habit's more traditional fast-food rivals, though, the feeling of satisfaction didn't last: The shares started to drop after the initial euphoria. But that isn't stopping other fast-casual operators from listing on the exchange. They're finding, though, what works in the kitchen isn't necessarily successful on the market. IPOh Yes IPOs of fast-casual chain operators are coming to the market faster than you can get a refill at a soda machine. This year alone has seen the market debut not only of The Habit, but also the Mediterranean-flavored Zoe's Kitchen (ZOES) and West Coast chicken griller El Pollo Loco Holdings (LOCO), among others. Like The Habit, the stocks of the latter two saw impressive first-day rises (although they didn't pop quite as high as those of the burger purveyor). Why the excitement? Some of it can certainly be ascribed to the IPO market itself, which has had a frothy year. As of this writing, 262 companies have gone public, a 25 percent rise over the same period of 2013. In terms of total proceeds from IPOs, 2014 is set to be the best year for at least the past decade. Building a Better Burrito But likely a bigger factor is that the fast-casual segment has one great model that investors are hoping the newcomers can at least partially replicate -- Chipotle Mexican Grill (CMG). Since going public in 2006, the stock of the now-ubiquitous chain has gone through the roof. Its IPO was priced at $22 a share and doubled in its first day of trading. Since then, its shares have ballooned -- at the moment, they trade at nearly $660, for a hard-to-believe 2,900-plus-percent rise from the issue price. It's not t

  • [By Nickey Friedman]

    By now just about everybody has heard of Chipotle Mexican Grill (NYSE: CMG  ) , but few outside California before its IPO had heard of El Pollo Loco (NASDAQ: LOCO  ) . It can be awfully tempting to ditch the seemingly more mature Chipotle chain and try to latch on to the next big thing. But is hitching a ride with the new kid on the Wall Street block really the smart move?

5 Best Restaurant Stocks To Watch Right Now: Chanticleer Holdings Inc (HOTR)

Chanticleer Holdings, Inc., incorporated in 1999, is a business operator focused on expanding the Hooters casual dining restaurant brand in international markets. Chanticleer has rights to develop and operate Hooters restaurants in South Africa and has joint ventured with the current franchisee in Australia. The company also has franchise rights to develop Hungary and parts of Brazil while evaluating several additional opportunities internationally. During the year ended December 31, 2011, Chanticleer and a group of private equity investors acquired Hooters of America, Inc. (HOA). HOA is the franchisor and operator of over 450 Hooters restaurants in 44 states and 28 foreign countries. In October 2013, Chanticleer Holdings Inc purchased American Roadside Burgers, Inc. In December 12, 2013, Chanticleer Holdings Inc acquired a 51% interest in JF Restaurants LLC, an owner and operator of restaurants. In February 2014, it acquired Hooters' United States Pacific Northwest franchise rights and two existing restaurants in Oregon and Washington.

The Company operates in two business segments: Hooters franchise restaurants, and investment management and consulting services businesses. Hooters has also branched out to other areas, including licensing its name to a golf tour and the sale of packaged food in supermarkets. Its subsidiaries include Chanticleer Advisors, LLC, (Advisors), Avenel Ventures, LLC (Ventures), Avenel Financial Services, LLC (AFS), Chanticleer Holdings Limited (CHL), Chanticleer Holdings Australia Pty, Ltd. (CHA), Chanticleer Investment Partners, LLC (CIP), DineOut SA Ltd. (DineOut), Kiarabrite (Pty) Ltd (KPL), Dimaflo (Pty) Ltd (DFLO), Tundraspex (Pty) Ltd (TPL), Civisign (Pty) Ltd (CPL), Dimalogix (Pty) Ltd (DLOG) and Crown Restaurants Kft. (CRK).

South Africa

As of December 31, 2011, the Company had four Hooters locations in South Africa in Cape Town, Durban and Johannesburg (two locations), which are owned by four companies, which it control. The Com! pany formed a management company to operate the current South African Hooters locations. It owns 80% of the management company, with two members of local management owning the remaining 20%. The management company charges a management fee of 5% of net revenues to the Hooters locations in South Africa.

Other Countries

The Company has acquired development rights for Hooters in five states of Brazil, which would include Rio de Janeiro. It has applied to HOA for franchise rights in Hungary, where it own 80% of the entity the Company anticipate will hold the franchise rights and its local partner owns the remaining 20%. The Company has partnered with the Hooters franchisee in a joint venture in which it owns 49% and its partner 51%. The first Hooters restaurant under this joint venture (which would be the third Hooters restaurant open in Australia) opened in January 2012 in Campbelltown, a suburb of Sydney. It has a non-binding letter of intent with a franchisee to purchase 100% of an existing Hooters location.

Management and consulting services

The Company provides management and consulting services for small companies, which are seeking to become publicly traded. The Company also provides management and investment services for Investors LLC and Investors II, which are affiliates of the Company.

Advisors' Opinion:
  • [By Chris Isidore]

    Restaurant chains are trying to hold the line on prices. Mark Allison, senior vice president of culinary operations at Chanticleer Holdings (HOTR), which operates the American Roadside Burger chain, said his chain raised prices about 12%, even though their beef costs are up even more than that.

5 Best Restaurant Stocks To Watch Right Now: Fiesta Restaurant Group Inc (FRGI)

Fiesta Restaurant Group, Inc. (Fiesta Restaurant Group), incorporated on April 27, 2011, owns, operates and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana. The Company's Pollo Tropical restaurants offer a range of tropical and Caribbean inspired food, while the Company's Taco Cabana restaurants offers a range of fresh, authentic Mexican food. As of December 30, 2012 , the Company owned and operated a total of 251 restaurants across four states, which included 91 Pollo Tropical and 160 Taco Cabana restaurants. The Company franchises its Pollo Tropical restaurants internationally. As of December 30, 2012 , the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on several college campuses in Florida. As of December 30, 2012 , the Company had eight Taco Cabana franchised restaurants located in Georgia, New Mexico and Texas.

Pollo Tropical

The Company's Pollo Tropical restaurants offer tropical and Caribbean inspired menu items, featuring grilled chicken marinated in the Company's blend of tropical fruit juices and spices. The Company's diverse menu also includes a line of TropiChops (a casserole bowl of grilled chicken, roast pork or grilled vegetables served over white, brown or yellow rice and red or black beans and topped with a range of condiments and sauces), a range of chicken sandwiches, wraps, salads, roast pork, grilled ribs and wings offered with a range of salsas, sauces and Caribbean style made from scratch side dishes, including black beans and rice, Yucatan fries and sweet plantains, as well as menu items, such as french fries, corn and salads. The Company also offers Hispanic desserts, such as flan and tres leches, and at certain locations, the Company offers a range of sangria, wine and beer.

The Company's Pollo Tropical restaurants feature signature dining areas. In additiona, the Company's Pollo Tropical restaurants ! provide its guests the option of take-out, as well as the convenience of drive-thru windows. The Company's Pollo Tropical restaurants are open for lunch, dinner and late night orders seven days per week. As of December 30, 2012, its company-owned Pollo Tropical restaurants were freestanding buildings. The Company's typical free-standing Pollo Tropical restaurant ranges from 2,800 to 3,500 square feet and provide interior seating for approximately 70 guests. As of December 30, 2012 , the Company owned and operated a total of 91 Pollo Tropical restaurants, of which 89 were located in Florida and two were located in Georgia. The Company is franchising its Pollo Tropical restaurants internationally. As of December 30, 2012, the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on college campuses in Florida. The Company also has agreements for the future development of franchised Pollo Tropical restaurants in Tobago, Aruba, Curacao, Bonaire, Guatemala and India.

Taco Cabana

The Company's Taco Cabana restaurants serve Mexican food, including flame-grilled beef and chicken fajitas served on sizzling iron skillets, quesadillas, hand-rolled flautas, enchiladas, burritos, tacos, fresh-made flour tortillas, a selection of made from scratch salsas and sauces, customizable salads served in a Cabana bowl, traditional Mexican and American breakfasts and other Mexican dishes. The Company's Taco Cabana restaurants also offer a range of beverage choices, including soft drinks, frozen margaritas and beer.

The Company's Taco Cabana restaurants feature interior dining areas, as well as semi-enclosed and outdoor patio areas. In addition, the Company's Taco Cabana restaurants provide its guests the option of take-out. The Company's freestanding Taco Cabana restaurants average approximately 3,500 square feet (exclusive of the exterior dining area) and provide seating for approximatel! y 80 gues! ts, with additional outside patio seating for approximately 50 guests. As of December 30, 2012, its company-owned Taco Cabana restaurants were freestanding buildings. As of December 30, 2012, the Company owned and operated 160 Taco Cabana restaurants, of which 156 are located in Texas and four in Oklahoma.

Advisors' Opinion:
  • [By Roberto Pedone]

    Fiesta Restaurant Group (FRGI) owns, operates and franchises fast-casual restaurants under the Pollo Tropical and Taco Cabana brand names. This stock closed up 10.5% to $34.73 in Friday's trading session.

    Friday's Volume: 552,000

    Three-Month Average Volume: 220,525

    Volume % Change: 140%

    From a technical perspective, FRGI ripped sharply higher here right off some near-term support at $30.89 and back above its 50-day moving average of $34.23 with strong upside volume. This move pushed shares of FRGI into breakout territory, since the stock took out some near-term overhead resistance at $33.14. Shares of FRGI are now starting to move within range of triggering another key breakout trade. That trade will hit if FRGI manages to take out some near-term overhead resistance at $35.73 with high volume.

    Traders should now look for long-biased trades in FRGI as long as it's trending above its 50-day at $34.23 or above $33 and then once it sustains a move or close above $35.75 with volume that hits near or above 220,525 shares. If that breakout hits soon, then FRGI will set up to re-test or possibly take out its all-time high at $38.84. Any high-volume move above that level will then give FRGI a chance to trend north of $40.

5 Best Restaurant Stocks To Watch Right Now: Noodles & Co (NDLS)

Noodles & Company, incorporated on December 19, 2002, is a casual restaurant concept offering lunch and dinner. The Company offers noodle and pasta dishes, staples of many cuisines, with the goal of delivering fresh ingredients and flavors globally under one roof from Pad Thai to Mac & Cheese. The Company�� globally inspired menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and sandwiches, which are served on china by its friendly team members.

As of May 28, 2013, including the 16 Company owned restaurants and one franchise restaurant opened in 2013. The Company opened 39 new company owned restaurants and six franchise restaurants. In 2012, the Company began using Your World Kitchen to describe the breadth of its offering and its customers' dining experience.

Advisors' Opinion:
  • [By Rick Munarriz]

    I went out on a limb last week, and now it's time to see how that decision played out.

    I predicted that Noodles & Co. (NASDAQ: NDLS  ) would close lower on the week. After seeing the fresh IPO more than double and command a $1.3 billion market cap far sooner than its fundamentals should allow, I figured it would be in for reality check. A negative Barron's piece kicked off the week in the seemingly appropriate bearish tone, but the shares did start to claw their way back later in the week. It wasn't enough. The shares fell 3% on the week. I was right. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, the market closed nicely higher this week. The Nasdaq moved 3.5% higher, and the Dow managed to close just 2.2% higher. I was right. My final call was for Peregrine Pharmaceuticals (NASDAQ: PPHM  ) to beat Wall Street's income estimates in its latest quarter. The upstart biotech tackling cancer through monoclonal antibodies has been posting blowout quarterly results over the past year, and I was banking on seeing the trend continue. Analysts were looking for a loss of $0.06 a share during the quarter, and it came through with exactly that. It wasn't a beat, though, so I was wrong.

    Two out of three? I can do better than that.

  • [By Rick Munarriz]

    2. Pasta la vista
    Another less-than-inspiring quarterly report came from Noodles & Co. (NASDAQ: NDLS  ) . The fast-casual chain which serves up noodles in several international incarnations saw its revenue rise 10%, but that's not good news when you learn that the number of company-owned locations has increased 17% over the past year.

  • [By Ben Rooney]

    There were three other consumer focused companies that more than doubled: sandwich shop Potbelly (PBPB), organic grocery store Sprouts Farmers Market (SFM) and Noodles & Co. (NDLS), a casual dining chain.

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