After an extensive operational reviewand financial analysisof its Qdoba Mexican restaurants, Jack in the Box has made the decisionto close67 (10% of total) underperforming restaurants under its Qdoba MexicanGrillbrand by the end of fiscal 2013 (ending Sept 29, 2013).
There are currently 647 Qdobarestaurants worldwide, which includes340 company-owned units. When all is said and done, the company expectstoincur about $28 million as impairment charges related to the closingsandapproximately $12 million in lease-related costs during fiscal 2013.
Management believes that since therestaurants were notdoing well, closing them would improve the company�� future profit andenhancethe cash flow position.
Hot Machinery Stocks To Watch Right Now: Arcos Dorados Holdings Inc (ARCO)
Arcos Dorados Holdings Inc., incorporated on December 9, 2010, is a McDonald�� franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald��-branded restaurants, which represented 6.7% of McDonald�� total franchised restaurants globally. It operates McDonald��-branded restaurants under two different operating formats, Company-operated restaurants and franchised restaurants. As of December 31, 2010, of its 1,755 McDonald��-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 buildings 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��-branded restaurants under two basic structures: Company-operated restaurants operated by the Company and franchised restaurants operated by franchisees. Under 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�� 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�� gross sales, and pays these fees to McDonald�� 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��. 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, mochas, 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�� 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�� menu.
Advisors' Opinion:- [By Rich Duprey]
Latin American McDonald's franchisee�Arcos Dorados (NYSE: ARCO ) announced today its second-quarter dividend of $0.0596�per share on its Class A and Class B stock, slightly lower than the steady rate of $0.0597 per share it's paid since 2011.
- [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.
5 Best Restaurant Stocks To Invest In 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 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.
- [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.
5 Best Restaurant Stocks To Invest In 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�� 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 Jason Moser]
In today's "Ask a Fool" segment,�Motley Fool One�analyst Jason Moser fields a question from a Fool who asks: "Is Noodles & Company (NASDAQ: NDLS ) a long-term investment?" There's no question Noodles and Company's IPO has the stock headed in the right direction. Jason offers his take on the situation, and what investors should look out for.
- [By Jon C. Ogg]
The 24/7 Wall St. list of public companies expected to double sales in the next few years includes the following: Kona Grill Inc. (NASDAQ: KONA), LinkedIn Corp. (NYSE: LNKD),�Noodles & Co. (NASDAQ: NDLS),�Onyx Pharmaceuticals Inc. (NASDAQ: ONXX),�Michael Kors Holdings Ltd. (NYSE: KORS),�Questcor Pharmaceuticals Inc. (NASDAQ: QCOR),�Tesla Motors Inc. (NASDAQ: TSLA),�Under Armour Inc. (NYSE: UA),�Workday Inc. (NYSE: WDAY) and Yelp Inc.�(NYSE: YELP). Facebook Inc. (NASDAQ: FB)�might as well be considered a runner-up here, but it was a direct competitor of LinkedIn in the selections.
5 Best Restaurant Stocks To Invest In 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 Seafood 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 service dining Italian restaurant operator in the United Stat! es. Olive Garden�� 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 Capital 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 Lobster 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 BLOGS.BARRONS]
By Jacqueline Doherty
Shares of Darden Restaurants (DRI) are up 2.80% to $50.33 today potentially on news that the former president of Olive Garden has been retained by activist shareholder Starboard Value, which has a 5.5% stake in Darden,�the restaurant conglomerate that owns Red Lobster and Olive Garden.
Bradley Blum, the former president of Olive Garden and former CEO of Burger King (BKW), was retained as an advisor to Starboard in return for a $50,000 fee, which he will use to purchase shares of Darden, according to a Securities and Exchange Commission filing. Blum is currently the owner of BLUM Enterprises, described in the filing as a progressive restaurant company focused on creating and operating new restaurant brands.
Starboard asked Darden earlier this year to delay its planned spinoff of Red Lobster and look at other options to increase the value of the company. Shares may be up on speculation that Starboard could put Blum forward as a board member if a proxy battle occurs.
�� have known Brad since his days at Olive Garden.� In all my conversations about DRI I have made no secret of the fact that I consider Brad uniquely qualified to head up a restructuring and turnaround at the company. �I believe his expertise and experience make him an extremely valuable asset,��wrote Howard Penney, an analyst with Hedgeye Risk Management in reaction to the SEC filing. Over the past year Penney has often written that Darden is worth substantially more than its stock price and requires new management.
Starboard may be replicating the path it took when investing in Office Depot. In November 2012 Starboard hired Joseph Vassalluzzo, a former Staples executive, and Robert Nardelli, former CEO of Home Depot and Chrysler, as advisors for their insight on how Office Depot could improve operations and strategy. Starboard had a 14.8% stake in Office Depot.� Both men were subsequently part of the four directors Starboard propose
- [By Damian Illia]
Here�� where I see that Nucor hold its competitive advantage: electric arc furnaces (EAF). These furnaces, in spite of being more electricity intensive, require a much lower per-unit investment and are significantly more efficient in terms of labor. Adding to this, the fact the Nucor has shifted its raw material usage from pig iron to direct-reduced iron (DRI) by building a new production capacity that utilizes cheap natural gas is also a way in which management is attaining a low-cost strategy to outperform its competitors. Moreover, Nucor�� acquisition of ferrous scrap metal broker David J. Joseph Company allows it to avoid price volatility.
- [By Mike Deane]
Before the opening bell on Friday morning, Darden Restaurants (DRI) reported its fourth�quarter results, posting higher revenues and lower earnings than last year’s fourth quarter.
DRI’s Earnings in Brief
Darden Restaurants�reported fourth�quarter revenues, including discontinued operations, of $2.32 billion, just above last year’s Q4 revenues of $2.3 billion. Net earnings for the quarter came in at $86.5 million, or 65 cents per share, which is down substantially from last year’s Q4 figure of $133.2 million, or $1.03 per share. DRI missed analysts’ estimates of 94 cents EPS on revenues of $2.33 billion.DRI Declares Dividend
Darden Restaurants did not announce a raise to its dividend, as was expected, and instead declared a dividend of 55 cents. The dividend is payable on August 1 to all shareholders of record as of�July 10.
Stock Performance
Darden stock was down $1.91, or 3.86%, in pre-market trading. YTD, the stock is down 7.13%.
DRI Dividend SnapshotAs of Market Close on June 19, 2014
Click here to see the complete history of DRI dividends.
- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number K is trading at a discount to only 3.) above. Since K's tangible book value is not meaningful, a Graham number can not be calculated. The stock is trading at a 130.9% premium to its calculated fair value of $28.13. K did not earn any Stars in this section.Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% K earned no Stars in this section. The company has paid a cash dividend to shareholders every year since 1923 and has increased its dividend payments for 10 consecutive years.Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA The NPV MMA Diff. of the $37 is below the $2,500 target I look for in a stock that has increased dividends as long as K has. If K grows its dividend at 2.2% per year, it will take 8 years to equal a MMA yielding an estimated 20-year average rate of 3.31%.Memberships and Peers: K is a member of the S&P 500. The company�� peer group includes: Campbell Soup Company (CPB) with a 2.7% yield, General Mills, Inc. (GIS) with a 3.0% yield, and The Hershey Company (HSY) with a 1.9% yield.Conclusion: K did not earn any Stars in the Fair Value section, did not earn any Stars in the Divi
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