SAN FRANCISCO (MarketWatch) ��Among the companies whose shares are expected to see active trade in Monday�� session are McDonald�� Corp., Netflix Inc. and Texas Instruments Inc.
McDonald�� (MCD) �is projected to report third-quarter earnings of $1.51 a share, according to a consensus survey by Thomson Reuters.
McDonald?s McDonald�� is set to report third-quarter earnings on Monday.Analysts at Janney Capital Markets cautioned that current expectations for McDonald�� same-store sales in the U.S. are too high. ��hould domestic sales merely match ��or even underperform ��Street expectations, then we believe it will be challenging for the stock to meaningfully outperform its restaurant-stock peers and the S&P 500,��Janney�� Mark Kalinowski said in a report published earlier this week.
Best Healthcare Equipment Companies To Watch For 2015: 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]
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 10 Restaurant Companies To Watch For 2014: Burger King Worldwide Inc (BKW)
Burger King Worldwide, Inc., incorporated on April 2, 2012, is a fast food hamburger restaurant, under the Burger King brand. The Company generates revenues from three sources: franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and fees paid by franchisees; property income from properties that it leases or subleases to franchisees, and retail sales at Company restaurants. In September 2012, it sold 41 Company-owned BURGER KING restaurants in Singapore to Rancak Selera Sdn Bhd. As of December 31, 2012, it owned or franchised a total of 12,997 restaurants in 86 countries and United States territories. In April 2013, it announced the sale of Burger King Restaurants of Canada (BKRC), including 94 Company owned BURGER KING restaurants in the Canada market to Redberry Investments Corp.
The Company operates in the FFHR category of the quick service restaurant (QSR), segment of the restaurant industry. In the United States, the QSR segment is the segment of the restaurant industry and has demonstrated steady growth over a long period of time. The Company launched four new menu platforms (salads, wraps, smoothies and desserts) and expanded its chicken, coffee and ancillary menu platforms. It has established a data driven marketing process, which is focused on driving restaurant sales and traffic, while targeting a broader consumer base with more inclusive messaging to reach women, parties with children and seniors.
United States and Canada (U.S. and Canada)
As of December 31, 2012, the Company had 7,293 franchise restaurants and 183 Company restaurants in the U.S. and Canada. During the year ended December 31, 2012, the Company refranchised 752 restaurants in the U.S. and Canada, bringing the region to 98% franchised. During the year ended December 31, 2012, it also continued to implement its Four Pillars strategy to improve comparable sales growth and franchise profitability by enhancing its Menu, Marke! ting Communications, Image, and Operations.
Europe, the Middle East and Africa (EMEA)
As of December 31, 2012, the Company had 2,989 franchise restaurants and 132 Company restaurants in EMEA. While in Germany continues with 684 restaurants as of December 31, 2012, Turkey and Russia are two of its growing markets with net openings of 78 restaurants and 47 restaurants, respectively, during the year ended December 31, 2012.
Latin America and the Caribbean (LAC)
As of December 31, 2012, the Company had 1,290 franchise and 100 Company restaurants in LAC. In 2011, the Company entered into a joint venture agreement with Vinci Partners for Brazil and granted franchise and development rights to the joint venture. The Company received a minority stake and board seats in the joint venture without deploying its own capital.
Asia Pacific (APAC)
As of December 31, 2012, the Company had 1,007 franchise and 3 Company restaurants in APAC. As of December 31, 2012,the Company had 357 restaurants in Australia. It contributed 44 Company restaurants in China. In September 2012, the Company sold 38restaurants to Rancak Selera, the Burger King franchisee in Malaysia.
The Company competes with McDonald�� Corporation, Wendy�� Company, Carl�� Jr., Jack in the Box and Sonic.
Advisors' Opinion:- [By David Goodboy]
I was pleasantly surprised that a Dunkin' Donuts I recently visited in South Carolina offered free Wi-Fi, a lounge area full of leather chairs, a variety of coffee flavors, sandwiches and, of course, donuts that are vastly superior to Starbucks' offerings. During my travels recently, I have noticed Dunkin' Donuts sprouting up in the same general areas as established Starbucks locations. This strategy resembles Burger King's (NYSE: BKW) pursuit of McDonald's (NYSE: MCD) locations.
- [By Ben Levisohn]
Yesterday, McDonald’s dropped 0.3% after reporting same-store sales–and Barron’s panned the stock. Today, however, McDonald’s shares have gained 3.5% to $98.56, leaving Burger King (BKW), which has ticked up 0.3% to $27.63, and Wendy’s (WEN), which has dropped 1.1% to $9.30, in their dust.
Top 10 Restaurant Companies To Watch For 2014: BAB Inc (BABB)
BAB, Inc., incorporated on July 12, 2000, franchises and licenses bagel and muffin retail units under the Big Apple Bagel (BAB) and My Favorite Muffin (MFM) trade names. At November 30, 2012, the Company had 100 franchise units and 6 licensed units in operation in 24 states. The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee. The Company has two wholly owned subsidiaries: BAB Systems, Inc. (Systems) and BAB Operations, Inc. (Operations). At November 30, 2012, the Company had 100 franchise units and six licensed units in operation in 24 states.
The Company additionally derives income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee. The BAB franchised brand consists of units operating as Big Apple Bagels, featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. Licensed BAB units serve the Company's par-baked frozen bagel and related products baked daily. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as My Favorite Muffin, featuring a variety of freshly baked muffins, coffees and related products, and units operating as My Favorite Muffin and Bagel Cafe, featuring these products as well as a variety of specialty bagel sandwiches and related products.
The Company�� BAB offering franchises in all 50 states, its initial development focus is targeted for the Midwest, specifically Illinois, Michigan, Wisconsin and Ohio. A! s part of its introductory development plan, BAB will be donating 10% of the initial franchise fee from its 50 SweetDuet units to the Cystic Fibrosis Foundation, of which BAB is a corporate sponsor. SweetDuet, as its name implies, is a fusion concept, pairing self-serve frozen yogurt with BAB's exclusive line of My Favorite Muffin gourmet muffins, broadening the shop's offering and therefore differentiating itself from the numerous frozen yogurt outlets already populating the market. SweetDuet shops include BAB's Brewster's Coffee and a streamlined breakfast menu. The concept is designed to work in 1600 square feet of space.
BAB franchised stores daily bake a variety of fresh bagels and offer up to 11 varieties of cream cheese spreads. Stores also offer a variety of breakfast and lunch bagel sandwiches, salads, soups, various dessert items, fruit smoothies, gourmet coffees and other beverages. A typical BAB store is in an area with a mix of both residential and commercial properties and ranges from 1,500 to 2,000 square feet. The Company's current store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons, and includes approximately 750 square feet devoted to production and baking. A satellite store is typically smaller than a production store, averaging 800 to 1,200 square feet. Although franchise stores may vary in size from other franchise stores, store layout is generally consistent.
MFM franchised stores daily bake 20 to 25 varieties of muffins from over 250 recipes, plus a variety of bagels. They also serve gourmet coffees, beverages and, at My Favorite Muffin and Bagel Cafe locations, a variety of bagel sandwiches and related products. The typical MFM store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons.The Company advertises its franchising opportunities in directories, newspapers and the Internet.
The Company competes with Einstein Noah Restaurant Group, Panera Bread Company and Brue! gger's Ba! gel Bakery.
Advisors' Opinion:- [By CRWE]
Today, BABB remains (0.00%) +0.000 at $.800 thus far (ref. google finance July 11, 2013).
For the quarter ended May 31, 2013, BAB had revenues of $658,000 and net income of $125,000, or $0.02 per share, versus revenues of $826,000 and net income of $267,000, or $0.04 per share, for the same quarter last year. For the quarter ended May 31, 2012, the Company received a $171,000 payment for the buyout of the Franchise Agreement from its Minot, ND franchisee so the franchisee could pursue its other business interests associated with the local energy boom. In that acceptance by the Company of the voluntary buyout is unique, no such transaction occurred nor was such income earned in the quarter ended May 31, 2013.
Top 10 Restaurant Companies To Watch For 2014: Popeyes Louisiana Kitchen Inc (PLKI)
Popeyes Louisiana Kitchen Inc, formerly AFC Enterprises, Inc. incorporated on July 27, 1992, develops, operates, and franchises quick-service restaurants (QSRs or restaurants) under the trade names Popeyes Chicken & Biscuits and Popeyes Louisiana Kitchen (collectively Popeyes). Within Popeyes, it manages two business segments: franchise operations and ompany-operated restaurants. Within the QSR industry, Popeyes distinguishes itself with a Louisiana style menu, which features spicy chicken, chicken sandwiches, chicken tenders, fried shrimp and other seafood, red beans and rice and other regional items. As of December 25, 2012, the Company operated and franchised 2,104 Popeyes restaurants in 47 states, the District of Columbia, Puerto Rico, Guam, the Cayman Islands and 26 foreign countries. As of December 25, 2012, of its 1,634 domestic franchised restaurants, approximately 70% were concentrated in Texas, California, Louisiana, Florida, Illinois, Maryland, New York, Georgia, Virginia and Mississippi. Of its 425 international franchised restaurants, approximately 60% were located in Korea, Canada, and Turkey. Of its 45 Company-operated restaurants, approximately 80% were concentrated in Louisiana and Tennessee. In November 2012, the Company acquired 27 restaurants in Minnesota and California.
As of December 25, 2012, the Company had 340 franchisees operating restaurants within the Popeyes system. During the fiscal year ended December 25, 2012 (fiscal 2012), the Popeyes system opened 141 restaurants, which included 75 domestic and 65 international restaurants. During fiscal 2011, the Popeyes system permanently closed 75 restaurants, resulting in 66 net restaurant openings, compared to 65 net openings. As of December 25, 2012, it leased 12 restaurants and subleased 44 restaurants to franchisees. In addition, it leased three properties to unrelated third parties. Of the restaurants leased or subleased to franchisees, 29 were located in Texas and 16 were located in Georgia. On November 7, 2012,! the Company entered into a new agreement with the King Features Syndicate Division of Hearst Holdings, Inc., licensor of the Popeye the Sailorman and associated cartoon characters.
Advisors' Opinion:- [By Mark Yagalla]
As the fast-food wars heat up, restaurants are getting more creative with their menu items. One item that is getting a lot of attention is the waffle. Two restaurant chains that have introduced their own variations of the waffle are Taco Bell, owned by Yum! Brands (NYSE: YUM ) �and Popeyes Louisiana Kitchen (NASDAQ: PLKI ) . Taco Bell has made the Waffle Taco a centerpiece of its new breakfast menu. Meanwhile, Popeyes is bringing back its popular Chicken Waffle Tenders. Could the waffle be the answer and boost same-store sales for these restaurants? If it is the answer, expect to see more variations of the waffle on many more menu boards.
- [By Sue Chang]
Popeyes Louisiana Kitchen Inc. (PLKI) �is expected to report first-quarter earnings of 45 cents a share.
Top 10 Restaurant Companies To Watch For 2014: 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 Bieglmeier]
Normally, we look for stocks that trade at least 1 million shares a day; however, when a major broker says a company has upside potential of close to 40%, we'll make an exception. And that's what Bank of America/Merrill Lynch says to expect from Arcos Dorados Holding Inc. (NYSE:ARCO).
- [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 Seth Jayson]
Arcos Dorados Holdings (NYSE: ARCO ) is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Arcos Dorados Holdings's revenues will grow 4.4% and EPS will decrease -58.3%.
Top 10 Restaurant Companies To Watch 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 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 Jon Quast]
Keep in mind that the company hasn't been driving growth by running promotions. Many restaurants do this, but growth often comes at the expense of profit margins. Consider that Darden (NYSE: DRI ) banks its ability to grow comparable sales on promotions. It ran promotions across all its brands, which included a three-course Italian dinner for $12.95 at Olive Garden and endless shrimp for $15.99 at Red Lobster.
- [By Ben Levisohn]
Shares of once-staid Darden Restaurants (DRI) have become increasingly volatile as fundamentals suffer and activist investors treat the company as their play thing.
BloombergDarden’s shares, for instance, rose 6.4% yesterday after an activist investor announced a position in the stock, after dropping 3.6% last Thursday when it released disappointing earnings and said it would spin off Red Lobster.
Wunderlich Securities’ Robert Derrington thinks activist investors might be dreaming if they expect a big pop in the share price:
Activists Barrington Capital (2.8%) and Starboard Value (5.6%) have taken positions in DRI and argue that management’s plan doesn’t go far enough to improve shareholder value. Both argue to establish a public REIT to hold its restaurant properties, though vary in separating growth-oriented businesses from mature concepts. Barrington argues DRI could be worth $71-$80/share thru separating its mature, growth and real estate assets; a valuation we suspect may not be supported by declining revenue (SSS) stream.
Darden’s shares dropped 0.6% to $54.01 today, even as McDonald’s (MCD) gained 0.3% to $96.54, Yum! Brands (YUM) rose 0.2% to $74.10 and Chipotle Mexican Grill (CMG) advanced 0.4% to $533.11.
Top 10 Restaurant Companies To Watch 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 Tropical
The Company's Pollo Tropical restaurants offer tropical and Caribbean inspired menu items, featuring grilled chicken marinated in the Company's blend of tropical fruit juices and spices. The Company's diverse menu also includes a line of TropiChops (a casserole bowl of grilled chicken, roast pork or grilled vegetables served over white, brown or yellow rice and red or black beans and topped with a range of condiments and sauces), a range of chicken sandwiches, wraps, salads, roast pork, grilled ribs and wings offered with a range of salsas, sauces and Caribbean style made from scratch side dishes, including black beans and rice, Yucatan fries and sweet plantains, as well as menu items, such as french fries, corn and salads. The Company also offers Hispanic desserts, such as flan and tres leches, and at certain locations, the Company offers a range of sangria, wine and beer.
The Company's Pollo Tropical restaurants feature signature dining areas. In additiona, the Company's Pollo Tropical restaurants ! provide its guests the option of take-out, as well as the convenience of drive-thru windows. The Company's Pollo Tropical restaurants are open for lunch, dinner and late night orders seven days per week. As of December 30, 2012, its company-owned Pollo Tropical restaurants were freestanding buildings. The Company's typical free-standing Pollo Tropical restaurant ranges from 2,800 to 3,500 square feet and provide interior seating for approximately 70 guests. As of December 30, 2012 , the Company owned and operated a total of 91 Pollo Tropical restaurants, of which 89 were located in Florida and two were located in Georgia. The Company is franchising its Pollo Tropical restaurants internationally. As of December 30, 2012, the Company had 35 franchised Pollo Tropical restaurants located in Puerto Rico, Ecuador, Honduras, Trinidad, the Bahamas, Venezuela, Costa Rica, Panama and on college campuses in Florida. The Company also has agreements for the future development of franchised Pollo Tropical restaurants in Tobago, Aruba, Curacao, Bonaire, Guatemala and India.
Taco Cabana
The Company's Taco Cabana restaurants serve Mexican food, including flame-grilled beef and chicken fajitas served on sizzling iron skillets, quesadillas, hand-rolled flautas, enchiladas, burritos, tacos, fresh-made flour tortillas, a selection of made from scratch salsas and sauces, customizable salads served in a Cabana bowl, traditional Mexican and American breakfasts and other Mexican dishes. The Company's Taco Cabana restaurants also offer a range of beverage choices, including soft drinks, frozen margaritas and beer.
The Company's Taco Cabana restaurants feature interior dining areas, as well as semi-enclosed and outdoor patio areas. In addition, the Company's Taco Cabana restaurants provide its guests the option of take-out. The Company's freestanding Taco Cabana restaurants average approximately 3,500 square feet (exclusive of the exterior dining area) and provide seating for approximatel! y 80 gues! ts, with additional outside patio seating for approximately 50 guests. As of December 30, 2012, its company-owned Taco Cabana restaurants were freestanding buildings. As of December 30, 2012, the Company owned and operated 160 Taco Cabana restaurants, of which 156 are located in Texas and four in Oklahoma.
Advisors' Opinion:- [By 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 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.
- [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.
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