Hospitality & Restaurants

A booming economy allows people to spend money on discretionary items such as air travel, so hotel revenues are higher during economic growth and lower during economic contraction.

The hotel industry is largely driven by the growth of the general economy, which instills spending confidence in both businesses and households.

In 2016, Domino’s Pizza (DPZ) paid dividends of $1.52—growth of 22.5% from $1.24 in 2015. In 2017, analysts expect its dividends to rise 7.9% to $1.64.

Baron Capital began investing in Vail Resorts in 1997, and it owns a ~15%–20% stake in the company. According to Ron Baron, this investment has returned ~50%–75%.

Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 15.8x. Its valuation has been significantly higher than its average valuation.

As VIP business continues to remain sluggish, casinos are increasingly turning their attention towards the mass market.

For September 2016 through November 2016, the unemployment rate stood at 1.9%.

Same-store sales growth SSSG (same-store sales growth), which is expressed as a percentage, is a measure of revenue growth in existing stores over a certain period. SSSG is driven by ticket size and traffic. It’s an important metric for investors to monitor, as it increases a company’s revenue without increasing capital investment, and it’s a […]

A sustainable coffee effort In the previous article, we looked at industry-level and investment-level examples of how things have been on the sustainable investment front and the developments that are helping certain industries. In this article, we’ll look at a company-level example by way of Starbucks (SBUX). Starbucks employs sustainability standards called C.A.F.E. (Coffee and […]

For 3Q16, analysts are estimating Expedia’s (EXPE) revenue to rise 31.3%. That’s slightly lower than the growth in the first and second quarters.

TRBCX has had quite a poor run in 2016 so far. The fund places in the bottom three in the YTD period among the 12 funds in this review.

On Friday, October 14, 2016, Morgan Stanley (MS) released a list of its favorite “secular growth” stock picks. It believes these stocks have long-term growth possibilities.

Wyndham has the highest return potential of 21% with a target price of $81. Marriott is next with a return potential of 18% and a target price of $79.15.

Despite the recent fall in Panera’s share prices, analysts are still maintaining their price target of $238.2 for the next year—a return potential of 18.5%.

As of September 16, 2016, these five fast food restaurants were trading at a median PE multiple of 21.4x.

Lower revenue and EPS estimates made investors skeptical about investing in Panera. As of September 19, it was trading at 28.1x—down from 30.9x on July 28.

Lower oil prices and unemployment rates globally could support the restaurant industry.

Macao casinos’ $28-billion investment in integrated resorts will change the city’s gaming. Capacity additions should increase the number of slot tables too.

The annual inflation in Macao fell to ~2.1% in July 2016. Inflation has, in fact, been on a declining trend in the region since February 2016.

After 26 consecutive months of declining revenues, Macao gaming revenues have finally shown a small spurt of growth.

On August 29, 2016, Chipotle Mexican Grill (CMG) launched its latest promotional offer, targeting students in the back-to-school season.

In 2Q16, Yum! Brands earned 84.9% of its revenue from company-owned restaurants and 15.1% from franchised restaurants.

In last four quarters, Chipotle has beaten analysts’ estimates three times. Usually, when the company beats analysts’ estimates, the share price rises.

Revenue sources By the end of 1Q16, Chipotle Mexican Grill (CMG) owned and operated all of its 2,066 restaurants. In 2Q16, analysts are expecting the company to register revenue of $1.05 billion, a decline of 12.1% from $1.2 billion in 1Q15. Factors affecting Chipotle’s revenue Although Chipotle’s management had undertaken several measures to counter the […]

Flowers Foods fell by 1.8% to close at $18.55 per share on July 7. The stock’s weekly, monthly, and YTD price movements were 0.32%, 0.32%, and -12.2%.

According to Bloomberg, of the ten analysts surveyed, 45.5% have issued “buy” recommendations for Wendy’s, while 50% have issued “hold” recommendations.

According to a Bloomberg survey of 16 analysts, 62.5% have given “buy” recommendations for JACK, and 37.5% have given “hold” recommendations.

After fiscal 4Q16 results, Darden Restaurants’ (DRI) management has revised its same-store sales growth guidance for fiscal 2017 to the range of 1%–2% as compared to earlier estimates of 1%–3%.

Analysts are maintaining a price target of $67.6 for Papa John’s for the next 12-months, which represents a return potential of 2.5% for the company.

A company is greatly impacted by its management’s decisions. In this article, we’ll discuss The Cheesecake Factory’s (CAKE) management and its achievements.

The Cheesecake Factory (CAKE) is competing in a highly competitive restaurant business, where innovation is absolutely necessary to keep up.

In 1992, when CAKE was listed, its average check size was at $13.6. By the end of 2015, the company’s average check size had increased to $20.8.

In the last five years, The Cheesecake Factory’s (CAKE) same-store sales growth was in the range of 1%–3%, largely driven by rises in its menu prices.

The Cheesecake Factory earns its revenue from its company-owned restaurant sales, franchisee fees and royalties, and its bakery operations.

The Cheesecake Factory (CAKE) created the Grand Lux Cafe brand at the request of Venetian Resort Hotel Casino in Las Vegas in 1999.

The Cheesecake Factory has positioned itself as an upscale casual dining concept that focuses on providing a distinctive, high-quality dining experience.

In February 1992, The Cheesecake Factory (CAKE) went public by offering 2.3 million shares at $20 per share. It closed its opening day at $27.3 per share.

In 1Q16, Shake Shack saw a 43.3% rise in revenue over $37.8 million in 1Q15, driven by unit growth and same-store sales growth.

Wendy’s Company (WEN) generates its revenue through company-owned restaurant sales, franchisee fees, rental income, and royalty collected from franchisees.

From the beginning of 2Q15 to the end of 1Q16, Panera Bread (PNRA) increased its unit count by 96, of which 25 units were added in 1Q16.