Can We Expect Momentum from Fast Casual Restaurants in 2017?
Of the 34 analysts that follow Chipotle Mexican Grill (CMG), 26.5% are recommending a “buy.”
In 4Q16, Shake Shack (SHAK) posted adjusted EPS of $0.09, a growth of 12.5% from $0.08 in 4Q15.
The better-than-expected 4Q16 earnings and strong 2017 outlook for Panera Bread (PNRA) appears to have increased investor confidence.
In 2017, analysts are expecting Chipotle Mexican Grill (CMG) to post revenue of $4.6 billion, a growth of 17.3% from $3.9 billion in 2016.
In 4Q16, Panera Bread (PNRA) posted an EBIT margin of 10.3% compared with 10.9% in 4Q15.
Revenue growth drives earnings and raises investor confidence, which should ultimately push stock prices upward.
With systemwide SSSG of 1.6%, Shake Shack (SHAK) outperformed the other two companies under review in 4Q16.
In this part of our series, we’ll discuss unit growth, a key growth driver for fast casual restaurants.
Since the beginning of 2017, Panera stock and Chipotle stock have risen 17.4% and 8.0%, respectively.
KMI is currently trading at a forward EV-to-EBITDA multiple of nearly 12x, which is lower than its five-year average multiple of ~18x.
Share prices generally move in tandem with analyst recommendations. As analysts raise their next-12-month target prices, stock prices may also increase.
Dividends help smooth out return volatility for shareholders. This effect is more important for cyclical companies, including the home improvement sector.
Investors should look at valuation multiples when they’re deciding whether to enter or exit a stock.
In 4Q16, Home Depot (HD) posted a gross margin, EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and net margin of 34.0%, 15.4%, and 7.9%, respectively.
Now that we’ve discussed revenue growth and profitability, let’s discuss EPS (earnings per share) growth for Home Depot (HD) and Lowe’s (LOW).
In 4Q16, Home Depot (HD) posted SSSG of 5.8% with growth in transactions contributing 2.8% while the rise in the average ticket size contributed 2.9%.
Analysts expect Home Depot (HD) to post revenue of $99.0 billion for 2017, a rise of 4.6% from its 2015 revenue of $94.6 billion.
In 4Q16, Home Depot (HD) posted revenues of $22.2 billion, an increase of 5.8% from $21.0 billion. During the same period, Lowe’s (LOW) revenue rose 19.3% to $15.8 billion.
In this series, we’ll look at the 4Q16 performance of Home Depot and Lowe’s in terms of key metrics and analyst estimates for the next four quarters.
Enbridge Energy Partners (EEP) is currently trading at a forward EV-to-EBITDA multiple of ~10.5x—lower than its four-year-average multiple of ~12x.