European stocks rose to an almost eight-week high as data signaled Germany is leading a revival in euro-area manufacturing and companies posted results that exceeded estimates.
Volvo AB (VOLVB) advanced the most in 10 months after the world’s second-largest truckmaker reported second-quarter earnings that beat forecasts. EasyJet climbed 3.7 percent after saying quarterly sales rose 11 percent on higher capacity utilization and revenue per seat. Syngenta (SYNN) AG fell 4 percent after posting first-half profit and revenue that trailed forecasts.
The Stoxx Europe 600 Index added 0.6 percent to 301.1 in London, the highest close since May 30. The benchmark pared earlier gains of as much as 1 percent. The index has rebounded 9.2 percent from this year’s low on June 24 as central banks around the world pledged to continue stimulus measures.
“I’ve been positively surprised by the earnings season so far,” said Michael Woischneck, who helps oversee about $9.3 billion at Lampe Asset Management in Dusseldorf, Germany. “Companies are holding up quite well and guidance from CEOs seem to show they are confident with their road maps ahead. I’m not saying I expect the next big boom in Europe, but there are signs that the economy is not getting worse.”
Top 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.
- [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.
- [By Lauren Pollock]
Noodles(NDLS) & Co.’s third-quarter profit soared as the fast-casual dining chain’s sales were bolstered by new restaurant openings and rising demand at established locations. Though sales were boosted by higher traffic and an increase in the amount spent per customer, shares of Noodles dropped 7.9% to $43 in premarket trading as the revenue growth wasn’t as lofty as analysts expected.
- [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.
Top 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%.
- [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
Top 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).
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.
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.
- [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.
Top 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.
- [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:
- [By Peter Graham]
Small cap stocks Caribbean International Holdings (OTCMKTS: CIHN), Blue Water Global Group Inc (OTCBB: BLUU) and Metrospaces Inc (OTCMKTS: MSPC) have been getting some attention lately in various investment newsletters and all three have focused their activities in the Caribbean or South America. However, all three have been the subject of paid promotions which have helped to get them mentions in various investment newsletters. With that in mind, will bets on the Caribbean or South America pay off big for these three small cap stocks and their investors? Here is a quick reality check:
Top 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.
- [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.
Top Restaurant Stocks To Own For 2014: 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 Tro pical
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 ar eas. 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 franchis ed Pollo Tropical restaurants in Tobago, Aruba, Curacao, Bonaire, Guatemala and India.
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 th e 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.
- [By GURUFOCUS]
Fiesta Restaurant Group (FRGI) was the Fund’s best performing position in the fourth quarter and for all of 2013. Over the past year the stock g ained over 240 percent and added 212 basis points of return. The fast-food chain has con tinued to restructure after spinning off Burger King restaurants and is now successfully ach ieving organic growth. We continue to believe the stock is undervalued and expect further growth ahead.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Fiesta Restaurant Group (Nasdaq: FRGI ) , whose recent revenue and earnings are plotted below.
- [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.