|Price Range 12mo avg:||$400K – $2.99M|
|$/sf 12mo avg:||$757.71|
|CAP Rate 12mo avg:||5.47%|
|Lease Terms:||18yrs NNN|
|Building Size avg:||3,800 SF|
|Lot Size avg:||1+/- acres|
Taco Bell®, a subsidiary of Yum! Brands, is the nation’s leading Mexican-style quick service restaurant serving more than 36 million customers each week in over 5,900 stores in the U.S. Since its founding by Glen Bell in 1962, Taco Bell has become the second most profitable brand in the country.
In 2012, Taco Bell celebrated its 50th anniversary, with the launch of the Live Mas® brand campaign, the reinvention of the taco with the revolutionary Doritos® Locos Taco, and the introduction of the game-changing Cantina Bell® Menu.
At Taco Bell we put our customers front and center, delivering excellent customer service, innovative and delicious products and value. In 2013, we ranked #6 on the QSR 50 list, were named Ad Age “Marketer of the Year,” and reached over $1 billion in sales of Doritos® Locos Tacos. “Live Mas®” is more than a company tagline; it’s a way of life at Taco Bell.
While Taco Bell is primarily a U.S. brand, Yum! Brands plans to make it the Company’s third global brand. Outside the U.S., we have nearly 300 Taco Bell units in 20 countries.
Yum! Brands, Inc., (NYSE: YUM), based in Louisville, Kentucky, is one of the world’s largest restaurant companies with over 41,000 restaurants in more than 125 countries and territories. Yum! Brands is ranked #216 on the FORTUNE 500 list with revenues of more than $13 billion and in 2014 was named among the 100 Best Corporate Citizens by Corporate Responsibility Magazine and one of the Aon Hewitt Top Companies for Leaders in North America. Our restaurant brands – KFC®, Pizza Hut® and Taco Bell® – are the global leaders of the chicken, pizza and Mexican-style food categories.
|S&P Credit Rating:||BBB|
|Moody’s Credit Rating:||Baa3|
|Annual Revenue 2014:||$1.86B|
|Annual Revenue 2013:||$1.87B|
|Revenue Growth:||↓ 1.5% from 2013|
|Units (Dec. 2014)||6,199|
|Average Units Volume:||$301K|
Yahoo! Finance: YUM News Latest Financial News for YUM
7 Restaurant Stocks to Buy for a Big Rebound
on April 3, 2020 at 3:22 pm
The shutdown of non-essential businesses across the United States has created an unexpected and sudden deterioration in the economy. Yet, given what we know about the severity of the novel coronavirus, the world must do anything to stop its spread. And the service industry is getting decimated, along with the tourism and hospitality industry. Restaurant stocks are trading at steep discounts as a result.Companies that support teleworking may continue working. But industries that require a face-to-face interaction will see a drop in business for now.The U.S. government approved a monstrously large stimulus package, partly to help consumers pay the rent and buy necessities. The government increased spending while the Federal Reserve eased rates to increase liquidity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut Laura Gonzalez, an associate professor of finance at California State University's Long Beach campus, said that "the production of processed food may not be sustained within months, and the United States could see a disruption in the market of perishable food. That would alter income in other industries because the price of some essentials may increase at a time of lack of liquidity." * 7 Telecom Stocks That Are Worth a Close Look Investors could look at stocks like Conagra Brands (NYSE:CAG) or Kellogg (NYSE:K) for exposure to the processed and packaged goods market. Conversely, the restaurant sector has stocks trading at steep discounts in light of the shutdown.When this is lifted, be it in a few or several weeks, investors have seven restaurant stocks to consider buying. Restaurant Stocks: Restaurant Brands International (QSR)Source: Shutterstock Restaurant Brands International (NYSE:QSR) has traded in the $40-$60 range since 2017. The breakout to around $76 last summer proved very short-lived. The company owns Burger King, a global business that performed well last year. In its last quarter, the company said that it watched the lockdown unfolding in China carefully. But since Burger King accounted for roughly 2% of sales, the company did not expect any material downturn in its business.Burger King added $23 billion in sales for QSR, growing 9% from the year before. Popeyes also enjoyed a strong year. Sales grew an impressive 18% in the year. This is due to the launch of the Chicken Sandwich.In effect, QSR noticed the strong demand for this product that Chick-fil-A enjoyed. Management said that "for the vast majority of our guests purchasing the sandwich, we saw that they actually spent more on other products than on the sandwich itself, resulting in very healthy check levels and incredibly valuable awareness and trial."This year stands in stark contrast to last year's strong results. Tim Hortons, a popular chain in Canada, will most certainly report a strong drop in sales after many provinces in the nation imposed a lockdown.At 17 times earnings and the majority of analysts rating the stock a "buy," QSR stock is due for a rebound. Stock Rover thinks the fair value is $62.41. McDonald's (MCD)Source: 8th.creator / Shutterstock.com McDonald's (NYSE:MCD) fell as low as $124.23 recently only to bounce back sharply. The fast-food chain will likely report a strong drop in revenues for the current quarter.Still, the company adapted to the tougher market conditions by temporarily taking out some items from its menu. This simplifies operations and helps lower the workload for its kitchen staff and crew. The burger giant also closed all of its locations in Ireland and the United Kingdom.McDonald's will experience a surge in drive-thru volumes. This will not offset the lost business, but will keep its customers getting the service they demand. Financially speaking, McDonald's has a healthy balance sheet. Its operating income greatly exceeds its capital expenditures, interest expenses and administrative costs. * 7 Dividend Stocks at Risk of Slashing Payouts To be on the safe side, the company filed a $1 billion borrowing with banks. This will give it a strong cash position and financial flexibility, in case uncertainties worsen due to the pandemic. Yum! Brands (YUM)Source: JHVEPhoto / Shutterstock.com Yum! Brands (NYSE:YUM) held the $100-$110 level until the coronavirus outbreak halted the economy. The stock, which pays a dividend yielding 2.8%, sees the light at the end of the tunnel. In its filing, the company wrote that "we have seen early signs of sales recovery in markets that were first impacted by COVID-19, although there can be no assurance of continued improvement."At the time of filing, Yum forecast same-store sales will fall in the mid to high single digits. Beyond the quarter ended March 31, the company is not positioned to give investors a forecast.To preserve its cash, Yum suspended its stock buyback program. Instead, it will invest in the company. It will also spend on things that maximize the health and well-being of its staff while they serve customers.At a price-earnings of around 17 times, YUM stock is a good turnaround play for patient investors. On average, analysts have a $97.13 price target on Yum! Brands.Conversely, readers may assume a 7% discount rate and a modest 2% perpetuity growth rate in a 5-year discounted cash flow growth exit model. In that scenario, YUM stock is worth $84.25. Starbucks (SBUX)Source: Grand Warszawski / Shutterstock.com Shares of Starbucks (NASDAQ:SBUX) are down sharply because of the pandemic affecting its business. Yet as China sets to end its lockdown in its Hubei province in early April, Starbucks may start to see business bouncing back in the region.The return of customers is hardly assured. But loyal customers will likely come back when businesses return to normal and people begin commuting to work.SBUX stock held up well during the massive selloff in restaurant stocks because the market expects the business to snap back. The market's optimism is undermined if the lockdown plays out longer. This delays the assumption on a return to normal life in China or in other countries.For now, investors should brace for a sharp drop in earnings, assuming at least 50% of the stores are closed. The drive-thru or delivery-only locations will soften the overall drop. In the months following a re-opening, independent coffee shops are not likely to survive. This will give Starbucks a chance to grow its market share. * 7 Strong Stocks to Buy to Survive the Coronavirus Crisis Analysts have an average price of $81.45 on SBUX stock. Conversely, investors may assume a 5.3% compounded annual growth rate in revenue. This implies SBUX stock is worth $74. Domino's Pizza (DPZ)Source: Ken Wolter / Shutterstock.com Domino's Pizza (NYSE:DPZ) is hiring around 1,000 more staff across more than 100 stores in Chicago. This signals that the company has a strong understanding of the neighborhood it serves. By positioning itself as a favorite restaurant option, Domino's has the opportunity to grow its market share.DPZ stock trades at a high P/E of 35 times, which is justified given the expected growth ahead.Before the global slowdown, the company grew U.S. same-store sales by 3.4% from the previous year. Its international business grew by 1.7%. Chances are good that as a delivery and carry-out business, the order rates will only grow in this tough economic period. Chipotle Mexican Grill (CMG)Source: Northfoto / Shutterstock.com Chipotle Mexican Grill (NYSE:CMG) shares lost almost half their value before rebounding sharply last week. Valuations for this popular restaurant are still unfavorable on a price-earnings basis. The company signed a deal with Uber Eats to provide delivery service for its customers. The company said that this will expand delivery and increase access to "real" food.Now that the new normal requires many to stay at home, Chipotle will deliver food to the customer's doorstep. Chris Brandt, its chief marketing officer, said that "We're excited to expand our delivery footprint through a partnership with Uber Eats, which will make it even easier for fans to get the food they love without leaving the house." * 10 Stocks to Buy That Will Benefit From Coronavirus Mayhem The 24 analysts who cover CMG stock have an $858.62 price target. Conversely, compared with its peers, the stock does not have much upside on a multiples valuation model. Either way, Chipotle is a popular restaurant destination. This addition on my list of restaurant stocks to buy will thrive regardless of market conditions. Shake Shack (SHAK)Source: JHENG YAO / Shutterstock.com Shake Shack (NYSE:SHAK) withdrew its financial guidance and shifted to a "to-go" model. Customers may order in the restaurant, online at its website or use the Shack App for pickup. Investors should notice that the stock fell into a prolonged downtrend over the last year. Valuations are unfavorable and the current headwind will slow its growth.In the last year, Shack system-wide sales grew 30% year-over-year to $895.3 million. Revenue grew 29% to $594.5 million while same-store sales grew 1.3%. Adjusted EBITDA improved by 11% YOY to $81.8 million. For 2020, the revenue growth momentum will end. But the business should rebound quickly.Investors cannot predict when the economy will return to normal. Even so, strong brand awareness in its many markets in the U.S. will help Shake Shack's business snap back. For now, its integrated delivery strategy with Grubhub (NYSE:GRUB) will add more value and generate more business leads.Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns. As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post 7 Restaurant Stocks to Buy for a Big Rebound appeared first on InvestorPlace. […]
How Does Yum! Brands's (NYSE:YUM) P/E Compare To Its Industry, After The Share Price Drop?
on April 3, 2020 at 1:33 pm
To the annoyance of some shareholders, Yum! Brands (NYSE:YUM) shares are down a considerable 30% in the last month... […]
With Traffic Down and Stores Closed, is it Time to Buy McDonald’s Stock?
on April 3, 2020 at 9:16 am
As the COVID-19 pandemic continues to affect our daily lives and the U.S. economy, investors are wondering if they should buy into shares of restaurant stocks in the second quarter. Year-to-date McDonald's (NYSE:MCD) stock is down about 18.2%.Source: 8th.creator / Shutterstock.com That decline compares to a 25% drop in the Consumer Discretionary Select Sector SPDR Fund (NYSEArca:XLY), which includes MCD as its third-largest holding at 7.39% of the portfolio, behind Amazon (NSADAQ:AMZN) at a whopping 24.1% and Home Depot (NYSE:HD) at 12% of the exchange-traded fund's assets.Despite the recent rapid decline, I expect the short-term volatility in MCD stock to continue. However, those investors with a two-to-three-year horizon may consider further dips as opportunity to buy into the shares.InvestorPlace - Stock Market News, Stock Advice & Trading Tips How the Pandemic is Affecting the Golden Arches GloballyMcDonald has more than 38,000 restaurants in over 100 countries. Its largest segment is the U.S.Next is its International Lead Markets segment, i.e., established markets including Australia, Canada, France, Germany and the U.K. And then comes its High Growth Markets, including China, Italy, Korea, the Netherlands, Poland, Russia, Spain and Switzerland.In recent weeks, the group has closed all play areas and many of its dine-in sections in the U.S. It has also simplified its menu offerings. * 7 Small-Cap Stocks That Might Not Survive Management is also likely to offer some franchisees rent deferrals. About 90% of the restaurants are currently franchised. As these franchisees carry the operating costs and business risks, McDonald's does not have to worry about the expenses of running those operations.Even more importantly, the group collects rent from the franchisees as the company owns most of the properties where the restaurants operate. It leases those out to the franchisees, often at significant markups. It may not be wrong to say that the company is in real estate business as much as food services. Therefore rent deferrals would likely affect McDonald's earnings.At present much of Europe is under a lockdown. And many businesses have either been ordered to shut down or have themselves decided to cease operations for now.For example, as of March 23, all McDonald's stores in the U.K. and Republic of Ireland have been closed indefinitely. Similar closures are also continuing in France, Italy and Spain. And in late January management had closed hundreds of stores in China, where the novel coronavirus had initially started. What to Expect from Q1 EarningsThe company is likely to announce Q1 results in late April.Its Q4 earnings, released in January, topped analysts' estimates. Quarterly revenue $5.3 billion fueled earnings per share of $1.97. Earnings got a boost from price hikes.U.S. same-store sales climbed 5.1% during Q4, despite traffic to restaurants falling by 1.9% in 2019. The company also reported global same-store sales growth of 5.9%.Overall, the results showed that the group is a consistent performer. It is also a profitable business with strong cash flows.But then came March when we started seeing the novel coronavirus become a global pandemic. And on March 17, MCD management said that it would not yet be able to fully assess the impact of the viral outbreak. McDonald's operates in the fragmented food service industry, which includes competitors like Restaurant Brands International (NYSE:QSR), Starbucks (NASDAQ:SBUX) and Yum Brands (NYSE:YUM).And shares of McDonald's as well as its peers have been suffering in recent weeks. In March alone, both MCD and SBUX were down 15% while QSR and YUM shares were down about 28% and 23%, respectively.Given the uncertainty not just in the U.S., but also in other countries, many investors are understandably quite anxious to analyze MCD stock's quarterly results in several weeks. Recent Price Action of MCD StockOn Aug. 9, 2019, MCD stock price saw an all-time high of $221.93. And on March 18, 2020 came the 52-week low of $124.23. The shares are now hovering around $162.Over the past year, the shares are down about 12%. If you're an investor who also pays attention to technical charts, you may be interested to know that the recent price action means that it'll likely take time for McDonald's stock price to settle. It'd need to build a base before a new sustained up move could start.In the coming weeks, I expect it to trade mostly between $150 and $175. The price may become even choppier around the earnings release date.If you currently hold MCD stock, depending on your risk/return profile, you may want to ride out the short-term volatility. * 30 Stocks on a Deathwatch Alternatively, if you're experienced with options, you may want to initiate a covered call position. For example, a May 15-expiry ATM call would provide some protection in case McDonald's stock falls further. It's also enable you to participate in a potential up move between now and mid-May.Recent research by Sandip Dutta and Vignesh Prabhu of Clemson University on company stock prices in times of recession and recovery highlights that a "franchised company like MCD shows … resilience and holds the stock price steady even in the average market meltdown."If history is any guide, McDonald's shares should be able to weather a prolonged downturn in the economy better than many other stocks. Investor Takeaway on MCD StockIt'd be no exaggeration to say that we're living in unprecedented times. And in recent weeks, share prices of most stocks, including the usual investor darlings like McDonald's, have been falling hard and fast.Your guess may indeed be as good as any other as to when most stocks will likely hit the bottom in 2020. Nonetheless, if you liked a company for solid fundamental reasons before its price went down double digits, then you should possibly like it even more now.Although there might still be some more short-term pain in MCD stock, long-term investors may consider buying the dip in McDonald's shares. I find the stock price attractive as it falls toward $150. Shareholders would also be entitled to the current dividend yield of about 3.1%.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post With Traffic Down and Stores Closed, is it Time to Buy McDonald's Stock? appeared first on InvestorPlace. […]
Cruise operator Carnival pays high price to get credit investors on board-sources
on April 2, 2020 at 2:45 am
Carnival Corp, the world's largest cruise operator, raised $6.25 billion by issuing new debt and equity on Wednesday, borrowing at a high cost to weather the economic storm of the coronavirus pandemic, people familiar with the matter said. Despite having its cruise ships idled to comply with travel restrictions to combat the virus, Carnival was able to attract enough investors that its capital raising was oversubscribed several times over, albeit at a steep price, the sources said. The company priced $4 billion in bonds maturing in 2023 -- upsized from the $3 billion originally planned -- with a yield at par value of 11.5%, one of sources said. […]
Papa John's upgraded to buy at MKM
on April 1, 2020 at 10:39 am
MKM Partners upgraded Papa John's Inc. stock to buy on Wednesday, and said pizza makers are better positioned than rivals during the coronavirus pandemic given their emphasis on and infrastructure for digital and delivery. Analyst Brett Levy cut his stock price target to $64 from $67, lowered his fair value estimate for Domino's Pizza to $340 from $350 and lowered his fair value estimate for Pizza Hut parent Yum Brands Inc. to $75 from $115. The upgrade of Papa John's is driven by evidence of same-store sales picking up ahead of structural changes to restaurant operations, the analyst wrote in a note to clients. ".. the market share gains in 1Q20 represented the first time in at least 5-years PZZA's domestic SSS outpaced DPZ's results; and 3) we believe management can further support its franchisees structurally or financially (the willingness to offer assistance in recent years is met by untapped credit facilities - leaving mgmt. with additional flexibility, if needed)," said the note. Papa John's shares were not active premarket, but have fallen 15% in the year to date, while the S&P 500 has fallen 20%. […]