Though shares of Buffalo Wild Wings (NASDAQ: BWLD ) rose more than 4% in Monday's after-hours trading following a strong quarterly report from the company, the stock fell into a tailspin Tuesday morning after a pair of analyst downgrades stemmed investors' excitement.
Sure enough, while Deutsche Bank raised its price target on the firm to $105 from $95 per share, the market drove shares of B-Wild down more than 4% after analysts at both Sterne Agee and KeyBanc downgraded the stock to "neutral" from "buy."
Image source: Buffalo Wild Wings
So what's an investor to do?�
The numbers
For the first quarter, while revenue increased 21.2% from the year-ago period to $304.4 million, B-Wild's net earnings�actually�decreased�10.2% year over year to $16.4 million. Earnings per diluted share also fell 11.2% to $0.87.
Meanwhile, same-store sales increased 1.4% at Buffalo Wild Wings' company-owned restaurants and 2.2% at franchised locations. While that still fell short of fast-casual competitor Panera Bread (NASDAQ: PNRA ) , which posted company-owned same-store sales growth of 3.3%, CEO Sally Smith reminded investors that her company still outpaced the negative same-store sales trend prominent in the casual-dining category as a whole. What's more, remember that in February, B-Wild management had said same-store sales for the first six weeks of Q1 were�down 2.8%, so ending Q1 in positive territory reflected a huge improvement for the chain.
Best Insurance 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]
Small cap stocks Naturalnano Inc (OTCMKTS: NNAN), Global Payout, Inc (OTCMKTS: GOHE) and Blue Water Global Group Inc (OTCBB: BLUU) were either jumping higher or diving lower yesterday. To complicate matters for investors, two of these small cap stocks have been subjects of disclosures about paid promotion or investor relation campaigns. So what will these three small caps do for the rest of this week? Here is a closer look to help you decide on a trading or investing strategy:
Hot Restaurant Stocks To Invest In Right Now: 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 Kate Gibson]
Darden Restaurants Inc. (DRI) shares jumped 7.4%. The Wall Street Journal, citing people familiar with the matter, reported hedge fund Barington Capital LP had taken a 2.8% stake in the owner of the Olive Garden and Red Lobster restaurants, and was pushing for Darden to split in two.
- [By Ben Levisohn]
Oppenheimer, meanwhile, highlights Darden Restaruants’ (DRI) tough summer. Brian Bittner and Michael Tamas write:
We reduce 1Q14E EPS (Jun-Aug) to $0.63 vs. Street’s $0.75. Consensus likely to come down to $0.70 range after several outliers in $0.80+ range adjust. We model -3.4% comps for the Big 3 in 1Q14E, vs. sell-side’s current -0.6%…
Hot Restaurant Stocks To Invest In Right Now: Country Style Cooking Restaurant Chain Co Ltd (CCSC)
Country Style Cooking Restaurant Chain Co., Ltd. (CSC Cayman), incorporated on August 14, 2007, is a quick service restaurant chain in China. The Company offers delicious, everyday Chinese food. The Company conducts all of its restaurant operations through CSC China and its subsidiaries. As of June 30, 2012, it had 256 restaurants, including 124 restaurants in Chongqing municipality and 85 restaurants in Sichuan province.
Chongqing municipality and Sichuan province cover a region of 110 million people in Southwest China. CSC Cayman directly operates all of its restaurants. Its standard menu features its main dishes prepared in the Sichuan style, as well as a selection of other dishes, appetizers, desserts and beverages. The Company periodically offers new dishes and seasonal menu selections.
The Company competes with McDonald��, KFC and Yoshinoya.
Advisors' Opinion:- [By CRWE]
Country Style Cooking Restaurant Chain Co., Ltd (NYSE:CCSC), a fast-growing quick service restaurant chain in China, plans to release its unaudited second quarter 2012 financial results on Tuesday, August 14, 2012, after the market closes.
Hot Restaurant Stocks To Invest In Right Now: 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 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.
- [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.
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