10 Best Restaurant Stocks To Own For 2014

The primary speculation about Microsoft Corp.’s (NASDAQ: MSFT) deal to buy Nokia Corp.’s (NYSE: NOK) handset business is that it gives the huge software company a building block to catch, or at least replicate, the success of Apple Inc. (NASDAQ: AAPL). Apple’s rise has been led by the launch and upgrades of its spectacularly successful iPhone and iPad. Apple churns out new versions of these products at least once a year. The latest will be released in just a few days. The Apple iOS has been successful as well, heralded as easy to use and nearly bug-free. Microsoft faces the problem that, even if it can build attractive smartphones with wonderful features and functions, it has to enter a market that Apple and Samsung have dominated for years.

Microsoft and Nokia are up against the same barriers that have halted the advance of HTC, Motorola, Sony Corp. (NYSE: SNE) and LG, the largest competitors to Samsung and Apple. Each loses large sums of money attacking the market. Another group of companies that include PC giant Lenovo also try to grab share. Apple and Samsung have portions of many markets that are well above two-thirds. In the United States, according to research firm comScore, Apple and Samsung had nearly 64% of the market in June. Those figures for both firms are rising. Additionally, Samsung products run Google Inc.’s (NASDAQ: GOOG) Android OS, which comScore shows with a 52% market share among operating systems used in smartphones sold in America.

10 Best Restaurant Stocks To Own For 2014: Country Style Cooking Restaurant Chain Co Ltd (CCSC)

Country Style Cooking Restaurant Chain Co., Ltd. (CSC Cayman), incorporated on August 14, 2007, is a quick service restaurant chain in China. The Company offers delicious, everyday Chinese food. The Company conducts all of its restaurant operations through CSC China and its subsidiaries. As of June 30, 2012, it had 256 restaurants, including 124 restaurants in Chongqing municipality and 85 restaurants in Sichuan province.

Chongqing municipality and Sichuan province cover a region of 110 million people in Southwest China. CSC Cayman directly operates all of its restaurants. Its standard menu features its main dishes prepared in the Sichuan style, as well as a selection of other dishes, appetizers, desserts and beverages. The Company periodically offers new dishes and seasonal menu selections.

The Company competes with McDonald’s, KFC and Yoshinoya.

Advisors’ Opinion:

  • [By CRWE]

    Country Style Cooking Restaurant Chain Co., Ltd (NYSE:CCSC), a fast-growing quick service restaurant chain in China, plans to release its unaudited second quarter 2012 financial results on Tuesday, August 14, 2012, after the market closes.

10 Best Restaurant Stocks To Own For 2014: Blue Water Global Group Inc (BLUU)

Blue Water Global Group, Inc. (Blue Water), incorporated on March 3, 2011, is a development-stage company. The Company focuses on developing a chain of casual dining restaurants in tourist destinations throughout the Caribbean region. The Company’s initial restaurant is going to be called Blue Water Bar & Grill and will be located in St. Maarten, Dutch West Indies.

As of February 7, 2013, the Company did not operate any restaurant properties, and did not have any ownership or leaseholds in any restaurant properties. As of February 7, 2013, the Company did not have any ownership or leaseholds in any restaurant properties.

Advisors’ Opinion:

  • [By Peter Graham]

    Small cap stocks Naturalnano Inc (OTCMKTS: NNAN), Global Payout, Inc (OTCMKTS: GOHE) and Blue Water Global Group Inc (OTCBB: BLUU) were either jumping higher or diving lower yesterday. To complicate matters for investors, two of these small cap stocks have been subjects of disclosures about paid promotion or investor relation campaigns. So what will these three small caps do for the rest of this week? Here is a closer look to help you decide on a trading or investing strategy:

  • [By Peter Graham]

    Last Friday, small cap Digital Brand Media & Marketing Group Inc (OTCMKTS: DBMM) surged 22.22% while Blue Water Global Group Inc (OTCBB: BLUU) sank 18.42% and Medina International Holdings, Inc (OTCMKTS: MIHI) sank 50%. However, one of these small caps (Blue Water Global Group) appears to be reversing course in early morning trading today. So with it and the rest of these small cap stocks either sink or swim in trading this week? Here is a closer look to help you decide on an investing or trading strategy:

10 Best Restaurant Stocks To Own For 2014: Ignite Restaurant Group Inc (IRG)

Ignite Restaurant Group, Inc., incorporated on February 4, 2002, operates two restaurant brands, Joe’s Crab Shack (Joe’s) and Brick House Tavern + Tap (Brick House). The Company’s Joe’s Crab Shack and Brick House Tavern + Tap operate in a diverse set of markets across the United States. Joe’s Crab Shack is a national chain of casual seafood restaurants serving a variety of seafood items, with an emphasis on crab. Brick House Tavern + Tap is a casual restaurant brand that provides guests a gastro pub experience by offering a blend of menu items. As of December 31, 2012, the Company owned and operated 144 restaurants in 33 states. In September 2013, Ignite Restaurant Group Inc announced the opening of its newest Joe’s Crab Shack restaurant, located in Newark, New Jersey.

Joe’s Crab Shack

The Company’s Joe’s Crab Shack offers an outdoor patio for guests to enjoy eating and drinking and a children’s playground. Joe’s also has many locatio ns that are located on waterfront property. Interior design elements include a nautical, vacation theme to invoke memories of beach vacations and a genuine crab shack experience. Joe’s Crab Shack restaurants have over 200 seats. Many of the Company’s restaurants also include a small gift shop where guests can purchase souvenirs to commemorate their dining experience. Joe’s Crab Shack also leverages its crab-forward menu with other crab items, including Made-From-Scratch Crab Cakes, Crab Nachos and Crazy-Good Crab Dip. In addition to its core crab-focused menu, Joe’s also offers a range of entrees featuring a variety of seafood, including the Get Stuffed Snapper, Surf ‘N Turf Burger and The Big Hook Up, as well as a range of traditional seafood entrees like the Fisherman’s Platter. Joe’s also offers several out of water options, such as Pan Fried Cheesy Chicken and Whiskey Smoked Ribs. In addition, alcoholic beverages include the Shark Bite, Category 5 Hurricane and Mason J ar cocktails emerging as guests’ top choices. Joe’s menu inc! ludes more than 29 items made with either Queen, Snow, Dungeness or King Crabs sourced from government regulated and sustainable fisheries. Its menu offers 14 appetizers, including Made-From-Scratch Crab Cakes, Crab Nachos and Crazy-Good Crab Dip, and over 50 entrees, including Steampots, Crab in a Bucket, Skillet Paella, Stuffed Snapper and out of water options like Whiskey Smoked Ribs.

Brick House Tavern + Tap

The Company’s Brick House’s interior decor includes custom lighting, dark mahogany woods, open sight lines, high definition television (HD TVs), and an inviting fireplace. In addition to a traditional dining room and bar area, Brick House also offers large communal tables and a section of leather recliners positioned in front of large HD TVs, where guests receive their own TV tray for dining. Outdoor seating is also available on the patio or around an open fire pit at nearly all locations. Both food and beverages are served by personable and engaging service staff. The typical Brick House restaurant is approximately 8,500 square feet and averages approximately 250 seats, which includes both traditional tables and seating options. Brick House offers its guests a selection of contemporary tavern food. Brick House’s menu includes 17 appetizers and over 53 entrees. Handcrafted appetizers include Deviled Eggs, Meatloaf Sliders, Brick Pizza, Meat and Cheese Board and Fried Stuffed Olives. Brick House offers an array of burgers, including The Kobe, which is hand formed from American Wagyu beef. Guests can also choose from a selection of homemade entrees, such as Drunken Chops, BBQ Baby Backs, Chicken & Waffles, and its Prime Rib Sandwich. In addition, Brick House’s Brick Burgers, include the Gun Show Burger and the Black & Bleu Burger. Brick House’s beverage selection includes imported and domestic beers along with hand-pulled cask beer. All Brick House restaurants have a bar that supports a variety of liquor drin ks, wine and beer cocktails like the Shandy and Bee Sting, a! s well as! specialty cocktails like the Dark & Stormy, Moscow Mule and The Zombie.

The Company competes with Red Lobster, Bonefish Grill, Landry’s Seafood, Bubba Gump Shrimp Company, BJ’s Restaurants, Yard House, Cheesecake Factory, Bravo Brio and Buffalo Wild Wings, Applebee’s, Chili’s, T.G.I. Friday’s, Texas Roadhouse and Outback Steakhouse.

Advisors’ Opinion:

  • [By Victor Selva]

    The firm is currently Zacks Rank # 3 – Hold, and it also has a longer-term recommendation of “Underperfom.” For investors looking for a Zacks Rank # 1 – Strong Buy, Ignite Restaurant Group Inc. (IRG) and The Wendy’s Company (WEN) could be the options.

  • [By Seth Jayson]

    Margins matter. The more Ignite Restaurant Group (Nasdaq: IRG  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That’s why we check up on margins at least once a quarter in this series. I’m looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Ignite Restaurant Group’s competitive position could be.

10 Best Restaurant Stocks To Own For 2014: Sodexo SA (SW)

Sodexo SA, (formerly Sodexho Alliance SA), is a global provider of services in three primary business areas: The On-site Services Solutions offer various services that range from food services to construction management, reception to the maintenance of scanners and laboratory equipment, management of data centers, leisure cruises and provides housekeeping to rehabilitation services at correctional facilities. The Motivation Solutions division provides passes and vouchers, comprising Restaurant Pass, Gift Pass, Sport Pass, Training Voucher, Service Card and Book Card, among others. The Company also provides Personal and Home Services in the form of childcare, tutoring, concierge services and in-home service care facilities. The Company is present in 80 countries in a number of geographic areas, such as North America, South America, Continental Europe and United Kingdom and Ireland. Advisors’ Opinion:

  • [By Glenwoods]

    Recently giant food conglomerate, Cargill announced it had partnered with the Swiss biosynthetic pharmaceutical company, Evolva (EVE:SW), to develop a more consistent and less expensive stevia sweetener via Evolva’s microbial fermentation-based process.  This is big news for the future of stevia because a microbial fermentation-based process does not have to rely on soil conditions or weather, and stevia can be manufactured anywhere, thus having the potential of guaranteeing an endless supply line of stevia.  Through the microbial fermentation, the manufacturer has the capability to process the key sweet individual components of stevia using low-cost plant sugars, and allows for the individual components of stevia, regardless of how minute, to be developed creating blends in any volume, which then could open the door for these manufacturers to fine-tune its stevia to local tastes.  But what would be most attractive is that, because the fermentation process does not require the entire plant, the method could conceivably shave upwards of 70% off the cost of producing stevia extracts. 

10 Best Restaurant Stocks To Own For 2014: Darden Restaurants Inc (DRI)

Darden Restaurants, Inc. (Darden), incorporated in March 1995, is a company owned and full-service restaurant company. As of May 27, 2012, the Company operated through subsidiaries 1,994 restaurants in the United States and Canada. In the United States, it operated 1,961 restaurants in all 50 states, including 677 Red Lobster, 786 Olive Garden, 386 LongHorn Steakhouse, 46 The Capital Grille, 30 Bahama Breeze, 23 Seasons 52, eight Eddie V’s Prime Seafood and three Wildfish Seafood Grille restaurants, and two test synergy restaurants, which house both a Red Lobster and Olive Garden restaurant in the same building. In Canada, the Company operated 33 restaurants, including 27 Red Lobster and six Olive Garden restaurants. Through subsidiaries, it owns and operates all of its restaurants in the United States and Canada, except for three restaurants located in Central Florida that is owned by joint ventures it manages. On November 14, 2011, it acquired eight Eddie V’s Prime Seafo od restaurants and three Wildfish Seafood Grille restaurants.

As of May 27, 2012, the Company had 28 restaurants outside the United States and Canada operated by independent third parties pursuant to area development and franchise agreements, including five LongHorn Steakhouse restaurants in Puerto Rico, 22 Red Lobster restaurants in Japan, and one Red Lobster restaurant in Dubai. During fiscal year ended May 27, 2012, it opened 89 net new restaurants in the United States and Canada.

Red Lobster

Red Lobster is a full-service dining seafood specialty restaurant operator in the United States. It offers a menu featuring fresh fish, shrimp, crab, lobster, scallops and other seafood. The menu includes a variety of specialty seafood and non-seafood entrees, appetizers and desserts. Red Lobster maintains different lunch and dinner menus and different menus across its trade areas.

Olive Garden

Olive Garden is a full s ervice dining Italian restaurant operator in the United Stat! es. Olive Garden’s menu includes a range of authentic Italian foods featuring fresh ingredients and a wine list that includes a selection of wines imported from Italy. The menu includes flatbreads and other appetizers, soups, salad and garlic bread sticks, baked pastas, sauted specialties with chicken, seafood and fresh vegetables, grilled meats, and a variety of desserts. Olive Garden also uses coffee imported from Italy for its espresso and cappuccino.

LongHorn Steakhouse

LongHorn Steakhouse restaurants are full-service establishments serving both lunch and dinner. With locations in 35 states, primarily in the Eastern half of the United States, LongHorn Steakhouse restaurants feature a range of menu items, including signature fresh steaks, as well as salmon, shrimp, chicken, ribs, pork chops, burgers and prime rib.

The Capital Grille

The Capital Grille has locations in metropolitan cities in the United States. The Capit al Grille offers seafood flown in daily and culinary specials created by its chefs. The restaurants feature a wine list offering over 350 selections, personalized service, and private dining rooms.

Bahama Breeze

Bahama Breeze restaurants bring guests the feeling of a Caribbean escape, offering the food, drinks and atmosphere found in the islands. The menu features Caribbean-inspired seafood, chicken and steaks, as well as signature specialty drinks. During fiscal 2012, it opened four Bahama Breeze restaurant.

Seasons 52

Seasons 52 is a grill and wine bar with seasonally inspired menus offering ingredients to meals that are lower in calories than comparable restaurant meals. It offers a wine list of more than 90 wines with approximately 60 available by the glass. As of May 27, 2012, there were 23 Seasons 52 restaurants in the United States.

Synergy restaurant

Synergy restaurant houses both a Red Lo bster and Olive Garden restaurant in the same building, but ! with sepa! rate front doors, dining rooms and brand-specific menus. It opened a second synergy test location during fiscal 2012.

Advisors’ Opinion:

  • [By John Kell var popups = dojo.query(“.socialByline .popC”); popups.forEach(func]

    Activist investor Barington Capital Group LP on Wednesday called for the Darden Restaurants Inc.(DRI) to consider seeking out a new chief executive, saying it has “lost confidence” in current chief Clarence Otis’ ability to run the company.

  • [By Ben Levisohn]

    The gloves are off. Barington Capital Group, which first proposed restructuring Darden Restaurants (DRI) by working with management, has changed course and asked Darden’s independent directors to name an independent chairman and consider hiring a new CEO.

  • [By Victor Selva]

    Darden Restaurants Inc. (DRI) is the world’s largest publicly held casual dining restaurant company. It owns and operates the Olive Garden®, Red Lobster®, LongHorn Steakhouse®, The Capital Grille®, Yard House®, Bahama Breeze®, Seasons 52®, Eddie V’s Prime Seafood® and Wildfish Seafood Grille® restaurant brands.

10 Best Restaurant Stocks To Own For 2014: 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’s 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 Aristotle Munarriz]

    Justin Sullivan/Getty Images March hasn’t been a good month for the quick-service industry. Sbarro — the pizza and pasta chain that’s a staple in many malls — filed for Chapter 11 bankruptcy reorganization earlier this month. A few days later it was toasted-sandwich maker Quiznos following suit. This doesn’t mean that you’ll never have another slice of Sbarro’s New York-style pizza or a French dip sub at Quiznos. Unlike Chapter 7 bankruptcy, where cash-strapped companies wind down their operations, Chapter 11 gives companies another chance to get it right after negotiating with creditors. It’s not a good place to be — and this is the second time Sbarro has gone this route in the past three years. However, things have to be pretty bad if you’re willing to risk upsetting creditors and potentially hand over ownership in the pursuit of a cleaner balance sheet. Sbarro and Quiznos hope that a fiscal makeover will turn the tide. Sbarro will surrender ownership to lenders in a move that will replace 80 percent of its debt with equity. Quiznos filed a prepackaged restructuring plan that would shave $400 million of debt. Both chains will live on, but they may not be the same. Mauled at the Mall Sbarro has shut 180 company-owned locations with plans to shutter dozens more. There are now less than 800 units. Quiznos has 2,100 largely franchisee-owned locations, but we’ll have to see how that holds up over time. Sbarro cited an “unprecedented decline in mall traffic” as a factor in its slide. As shoppers migrate online, there has been slower foot traffic at the suburban mall and hence to the food court. Quiznos relies on standalone locations and strip-mall outlets that haven’t necessarily suffered from the thinning shopping mall crowds that have hurt Sbarro. However, Quiznos has been hit by everything from the larger Subway following it into toasted subs to folks scaling back on carbohydrates. It didn’t seem as if this was a problem last year. Two of the hotte

  • [By Ben Levisohn]

    What happens when noodles gets overcooked? They turn into a gooey, mushy mess. What happens when Noodles & Co (NDLS), which trades at a 78.5 times forward earnings, releases disappointing results? It too turns into a gooey, mushy mess.

10 Best Restaurant Stocks To Own For 2014: Brinker International Inc (EAT)

Brinker International, Inc. (Brinker), incorporated on September 30, 1983, owns, develops, operates and franchises the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands. As of June 27, 2013 (fiscal 2013), the Company’s system of Company-owned and franchised restaurants included 1,591 restaurants located in 50 states, and Washington, D.C. It also has restaurants in the Bahrain, Brazil, Canada, Columbia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, Germany, Guatemala, Honduras, India, Indonesia, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, Oman, Peru, Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Syria, Taiwan, United Arab Emirates and Venezuela.

Chili’s Grill & Bar

Chili’s operates in the Bar and Grill category of casual dining. The Company has operations worldwide, with locations in 32 foreign countries and two United States territories. Chili’s menu fea tures items, such as Baby Back Ribs smoked in-house, Big Mouth Burgers, Sizzling Fajitas, hand-battered Chicken Crispers and house-made Chips and Salsa. The all-day menu offers a range of appetizers, entrees and desserts. A special lunch section is available on weekdays. In addition to its flavorful food, Chili’s offers a line of alcoholic beverages available from the bar, including Margaritas and draft beer. During fiscal 2013, food and non-alcoholic beverage sales constituted approximately 86.1% of Chili’s total restaurant revenues, with alcoholic beverage sales accounted for the remaining 13.9%.

Maggiano’s Little Italy

Maggiano’s is a full-service, casual dining Italian restaurant brand. Its Maggiano’s restaurants feature individual and family-style menus, and its restaurants also have banquet facilities designed to host party business or social events. It has lunch and dinner menu offering chef-prepared, classic Italian-American fare i n the form of appetizers, entrees with portions of pasta, ch! icken, seafood, veal and prime steaks, and desserts. The Company’s Maggiano’s restaurants also offer a range of alcoholic beverages, including wines. In addition, Maggiano’s offers a full carryout menu, as well as local delivery services. During fiscal 2013, food and non-alcoholic beverage sales constituted approximately 83.0% of Maggiano’s total restaurant revenues, with alcoholic beverage sales accounted for the remaining 17.0%.

Advisors’ Opinion:

  • [By Victor Selva]

    As we can see, the firm has a higher ROE than Wendy´s and Buffalo Wild Wings, Inc. (BWLD), but far less than the ones from Dunkin Brands Group Inc (DNKN) and Brinker International, Inc. (EAT).

  • [By Damian Illia]

    The restaurant industry has not been easy these days, as many setbacks seem to have interfered with companies’ performance. Holiday seasons, bad weather and other challenges lead to under top-line results for many. Firms such as Chili’s of Brinker International (EAT) or McDonald’s (MCD) have complained about the hostile weather conditions striking their business.

  • [By Rick Aristotle Munarriz]

    AP/Jae C. Hong For all the talk about drones replacing parcel carriers or self-driving cars disrupting the taxi industry, there’s a bigger tech revolution happening in the restaurant industry right now that may displace workers far sooner than anything futurists foresee in those other industries. The arrival of tablets and smartphone apps that detail menu items, take orders, and let you settle up your tab at the en of the meal will be a big theme among casual dining chains and even a few independent foodie haunts this year. Brinker International’s (EAT) Chili’s, DineEquity’s (DIN) Applebee’s, and a handful of San Francisco fine dining establishments are leading the push to add the technology, which will make waiters and waitresses less necessary. None of the chains have said that these tech initiatives will lead them to reduce waitstaff headcount — but it doesn’t take a lot of foresight to connect the dots. If folks are using table-side tablets to place orders and ask for drink refills, or firing up a smartphone app to pay at the end of a meal, that naturally translates into fewer front-of-house employees needed to keep an eatery going. Order Up In fact, some industry leaders outright deny that mobile tech will displace staff. “This really isn’t a labor play,” DineEquity CEO Julia Stewart said on CNBC late last year, explaining Applebee’s move to deploy 100,000 tablets this year — one at every table. “It’s not about saving labor. This is really about creating an opportunity to talk to our guest, have an interactive conversation with our guest, and give our guest a lot more opportunities.” At first, a waitstaff will be instrumental in assisting customers as they use the tablets to place orders or pay their bills. There will also be patrons who are apprehensive about embracing the technology, and Applebee’s will still have waiters taking orders the old-fashioned way for people who prefer talking to a person. Chili’s is going with a less-comprehensive table

  • [By Rick Aristotle Munarriz]

    AP/Shiho FukadaActivist investor Carl Icahn loves to give advice to public companies. But this week, his advice for eBay felt a couple of years behind the curve. Companies can make brilliant moves, but there are also times when things don’t work out quite as planned. From a classy handbag maker carrying its latest financials to market, to a blowout report by the leading streaming video service, here’s a rundown of the week’s best and worst in the business world. Netflix (NFLX) — Winner Netflix was last year’s top performer among S&P 500 stocks, and it’s off to another strong start in 2014. Shares of the leading video service hit another all-time high this week after it posted blowout quarterly results. Netflix closed out the year on a strong note with more than 44 million streaming subscribers worldwide and expanding profit margins. It expects to top 48 million streaming members by the end of March. Strong financial results naturally make you a winner, but Netflix also got the market excited by announcing that it will soon offer a variety of pricing plans. More importantly, it’s suggesting that it may eventually increase the price of its basic $7.99 a month plan. Coach (COH) — Loser Luxury handbags are still selling, but Coach totes aren’t faring as well. The iconic maker of high-end purses and accessories posted disappointing quarterly results on Tuesday. Sales declined by 6 percent during the seasonally potent holiday quarter, and net income took an even bigger hit. Foreign currency translations weighed on the results, but sales still would have been lower if there weren’t any currency fluctuations. Coach investors shouldn’t be surprised. Sales, net income, and store-level comparable sales also slipped three months earlier. It’s not the niche. Michael Kors (KORS) has been able to post healthy double-digit growth through the gradual fade in prominence at Coach. Beats Music — Winner Music streaming has become popular, and that’s big for the musi

10 Best Restaurant Stocks To Own For 2014: Arcos Dorados Holdings Inc (ARCO)

Arcos Dorados Holdings Inc., incorporated on December 9, 2010, is a McDonald’s franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald’s-branded restaurants, which represented 6.7% of McDonald’s total franchised restaurants globally. It operates McDonald’s-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2010, of its 1,755 McDonald’s-branded restaurants in the territories, 1,292 (or 74%) were Company-operated restaurants and 463 (or 26%) were franchised restaurants. It generates revenues from two sources: sales by Company-operated restaurants and revenues from franchised restaurants, which consist of rental income, which is based on the greater of a flat fee or a percentage of sales reported by franchised restaurants. As of December 31, 2010, it owned the land for 510 of its restaurants (totaling approximately 1.2 million square meters) and the bui ldings for all but 12 of its restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico and the United States Virgin Islands of St. Croix and St. Thomas; North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and South Latin America division (SLAD), consisting of Argentina, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela. As of December 31, 2010, 35.1% of its restaurants were located in Brazil, 29.7% in SLAD, 27.1% in NOLAD and 8.1% in the Caribbean division. The Company conducts its business through its indirect, wholly owned subsidiary Arcos Dorados B.V.

Company-Operated and Franchised Restaurants

The Company operates its McDonald’s-branded restaurants under two basic structures: Company-operated restaurants operated by the Company and franchised restaurants operated by franchisees. Und er both operating alternatives the real estate location may ! either be owned or leased by the Company. It owns, fully manages and operates the Company-operated restaurants and retains any operating profits generated by such restaurants, after paying operating expenses and the franchise and other fees owed to McDonald’s under the Master Franchise Agreements (MFAs). In Company-operated restaurants, it assumes the capital expenditures for the building and equipment of the restaurant and, if it owns the real estate location, for the land as well. Under its franchise arrangements, franchisees provide a portion of the capital required by initially investing in the equipment, signs, seating and decor of their restaurants, and by reinvesting in the business over time. It is required by the MFAs to own the real estate or to secure long-term leases for franchised restaurant sites. It subsequently leases or subleases the property to franchisees.

In exchange for the lease and services, franchisees pay a monthly rent to the Company , based on the greater of a fixed rent or a certain percentage of gross sales. In addition to this monthly rent, it collects the monthly continuing franchise fee, which generally is 5% of the United States dollar equivalent of the restaurant’s gross sales, and pays these fees to McDonald’s pursuant to the MFAs. However, if a franchisee fails to pay its monthly continuing franchise fee, it remains liable for payment in full of these fees to McDonald’s. As of December 31, 2010, it was engaged in several joint ventures, which collectively owned 24 restaurants, in Argentina, Chile and Colombia.

Restaurant Categories

The Company classifies its restaurants into one of four categories: freestanding, food court, in-store and mall stores. Freestanding restaurants are the type of restaurant, which have ample indoor seating and include a drive-through area. Food court restaurants are located in malls and consist of a front counter and kitchen and do not have their own seating area. In-store restaurants are part ! of a larg! er building and resemble freestanding restaurants, except for the lack of a drive-through area. Mall stores are located in malls like food court restaurants, but have their own seating areas. As of December 31, 2010, 808 (or 46.2%) of its restaurants were freestanding, 359 (or 20.5%) were food court, 265 (or 15.1%) were in-stores and 319 (or 18.2%) were mall stores. In addition, it has four non-traditional stores, such as food carts.

Reimaging

As of December 31, 2010, the Company had completed the reimaging of 308 of 1,569 restaurants. Many of the reimaging projects include the addition of McCafe locations to the restaurant. It has developed system-wide guidelines for the interior and exterior design of reimaged restaurants.

McCafe Locations and Dessert Centers

McCafe locations are stylish, separate areas within restaurants where customers can purchase a range of customizable beverages, including lattes, cappuccinos, moc has, hot and iced premium coffees and hot chocolate. As of December 31, 2010, there were 267 McCafe locations in the Territories, of which 12% were operated by franchisees. Argentina, with 71 locations, has McCafe locations, followed by Brazil, with 67 locations. In addition to McCafe locations, it has Dessert Centers. Dessert Centers operate from existing restaurants, but depend on them for supplies and operational support. As of December 31, 2010, there were 1,306 Dessert Centers in the Territories.

Product Offerings

The Company’s menus feature three tiers of products: affordable entry-level options, such as its Big Pleasures, Small Prices or Combo del Dia (Daily Extra Value Meal) offerings, core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products, which are marketed through common platforms rather than as individual items. These platforms can be based on the ty! pe of pro! ducts, such as beef, chicken, salads or desserts, or on the type of customer targeted, such as the children’s menu.

Advisors’ Opinion:

  • [By Chris Hill]

    In this segment of Friday’s Investor Beat, Motley Fool analyst Ron Gross gives investors one stock that he’ll be watching closely this week. He takes a look at Arcos Dorados (NYSE: ARCO  ) , which holds the franchise rights to McDonald’s (NYSE: MCD  ) in Latin America and the Caribbean. The company reports earnings next week, and while it has been a long-time holding for Ron in the Motley Fool’s Million-Dollar Portfolio service, he sees reasons to be concerned here. The company’s store growth is slowing, so he’ll be watching closely to see what the company has to say next week.

  • [By Geoffrey Seiler]

    Analyst John Ivankoe took Arcos Dorados (ARCO) from neutral to overweight and increased his target from $13 to $14. It is the first time the analyst has had a positive view on the stock since it IPO’d.

  • [By Dan Caplinger]

    Next Tuesday, Arcos Dorados (NYSE: ARCO  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

  • [By Dan Caplinger]

    Internationally, Jamba still has a small presence, but it made a big step by making a master franchise development agreement to open 80 stores throughout Mexico beginning later this year. The success that Arcos Dorados (NYSE: ARCO  ) has had in Mexico and other Latin American countries in franchising McDonald’s (NYSE: MCD  ) locations shows the huge potential that the region has generally for American restaurants, and focusing on warmer climates should help Jamba avoid the seasonality it suffers colder markets like the U.S. and Canada.

10 Best Restaurant Stocks To Own For 2014: 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 franch ise 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 fr anchisee 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 Konrad Kuhn]

    Chanticleer Holdings (HOTR), a franchisee of international Hooters restaurants, has exploded through its upside target prices; however, in our view, the stock has a long way to go, as it expands its restaurants abroad, and in the US.

10 Best Restaurant Stocks To Own For 2014: Einstein Noah Restaurant Group Inc (BAGL)

Einstein Noah Restaurant Group, Inc. (ENRGI), incorporated on October 21, 1992, is an owner/operator, franchisor and licensor of bagel specialty restaurants in the United States. ENRGI operates under the Einstein Bros. Bagels (Einstein Bros.), Noah’s New York Bagels (Noah’s) and Manhattan Bagel Company (Manhattan Bagel) brands. ENRGI operates in three business segments: the Company-owned restaurants segment, the manufacturing and commissary segment, and the franchise and license segment. The Company-owned restaurants segment includes the restaurants that it owns. The manufacturing and commissary segment produces and distributes bagel dough and other products to its Company-owned restaurants, licensees and franchisees and other third parties. The franchise and license segment earns royalties and other fees from the use of trademarks and operating systems developed for the Einstein Bros., Noah’s and Manhattan Bagel brands.

During the fiscal year ended Jan uary 1, 2013 (fiscal 2012), ENRGI acquired eight restaurants and opened an additional 15 Company-owned restaurants. It closed one Company-owned restaurant during fiscal 2012. On January 31, 2012, the Company sold a Company-owned restaurant. As of January 1, 2013, it had 816 restaurants in 39 states and in the District of Columbia. In January 2013, the Company opened an Einstein Bros. franchise in Montana. Its product offerings include fresh-baked bagels and other bakery items baked onsite, ma de-to-order breakfast and lunch sandwiches on a range of bagels, breads or wraps, gourmet soups and salads, assorted pastries, premium coffees and an assortment of snacks. Its manufacturing and independent distribution network delivers ingredients that are delivered fresh to its restaurants.

Company-owned restaurants

Einstein Bros. offers a menu that provides food for breakfast and lunch, including fresh-baked bagels and hot breakfast sandwiches, freshly prepa red lunch sandwiches, cream cheese and other spreads, specia! lty coffees and teas, soups, salads and other menu offerings. Noah’s is a neighborhood-based bakery/deli restaurant that serves fresh-baked bagels, hot breakfast sandwiches, made-to-order deli-style sandwiches, cream cheese and other spreads, specialty coffees and teas, soups, salads and other menu offerings. Manhattan Bagel provides a traditional New York style boil and baked bagel. Manhattan Bagel also serves a range of grilled sandwiches, freshly made deli sandwiches, freshly prepared breakfast sandwiches, soups, and a range of other fresh-baked sweets. Similar to Einstein Bros. and Noah’s, Manhattan Bagel also features a line of fresh brewed coffees and specialty coffee/espresso beverages. During fiscal 2012, ENRGI generated approximately 90% of its total revenue from restaurant sales at its Company-owned restaurants.

Manufacturing and Commissaries

ENRGI operates a bagel dough manufacturing facility in Whittier, California and has contracts with two suppliers to produce bagel dough and sweets to the specifications. These facilities provide frozen dough, partially-baked frozen bagels and fully baked sweets for its Company-owned restaurants, franchisees and licensees. These operations provide the restaurants with food products, such as sliced meats, cheeses, and/or certain salad ingredients. It has recipes and production processes for the bagel dough, cream cheese and coffee. Frozen, or partially baked and frozen, bagel dough is shipped to all of its Company-owned, franchised and licensed restaurants where the dough is then baked onsite. Its purchases other ingredients used in the restaurants, such as meat, lettuce, tomatoes and condiments, from a select group of third party suppliers.

Franchise and Licensing

ENRGI offers Einstein Bros. franchises to qualified area developers. As of January 1, 2013, the Company was registered to offer Einstein Bros. franchises in 49 states and the Distr ict of Columbia. It also has a franchise base in the Manhatt! an Bagel ! brand. Its licensees are located primarily in colleges and universities, hospitals, airports and military bases. As of February 25, 2013, it had 28 development agreements in place for 136 total restaurants, 34 of which have already opened. During fiscal 2012, it opened 13 franchised locations and 27 licensed locations. During fiscal 2012, approximately 3% of its total revenue was generated by the Company’s franchise and license operations.

Advisors’ Opinion:

  • [By MARKETWATCH]

    SAN FRANCISCO (MarketWatch) — Wall Street hedge-fund investor David Einhorn was active in the last quarter of 2013, taking new stakes in technology and energy companies, while trimming existing holdings in insurer Aetna (AET) , NCR Corp (NCR) and WPX Energy (WPX) , according to an SEC filing Friday. Einhorn’s Greenlight Capital picked up stakes in Anadarko Petroleum (APC) , BP (BP) , McDermott Intl. (MDR) , Micron Technolgy (MU) and Take-Two Interactive (TTWO) , according to the latest 13F filing. He trimmed stakes in Aetna, Einstein Noah (BAGL) and WPX Energy, according to the filing.

  • [By John Udovich]

    At the end of last week, small cap sandwich stock Potbelly Corp (NASDAQ: PBPB) had a delicious surge of 120% for its IPO – meaning its probably a good idea to see whether its still worth getting in on the action plus take a look at the performance of peers Cosi Inc (NASDAQ: COSI), Panera Bread Co (NASDAQ: PNRA) and Einstein Noah Restaurant Group, Inc (NASDAQ: BAGL) as Subway remains private. I should mention that competing with Subway in the sandwich business is a tall order as they have 40,229 restaurants in 102 countries and territories as of early September – making them the largest single-brand restaurant chain and the largest restaurant operator globally. However, Potbelly Corp and its peers Cosi Inc, Panera Bread Co and Einstein Noah Restaurant Group aren’t slugging it out directly with Subway.