Analyst Upgrades

• Hudson Square upgraded Take-Two (TTWO) to buy from hold, citing the better-than-expected Q3 report and increased guidance.
• Keybanc upgraded The Buckle (BKE) to hold from underweight given the potential for a special dividend in the near term.
• Stifel Nicolaus upgraded K-Sea Transportation (KSP) to hold from sell, citing KA First Reserve's $100M equity investment.
• Gold Fields (GFI) was upgraded to overweight from equal weight at Morgan Stanley.
• James Hardie NV (JHX) was upgraded to neutral from reduce at Nomura.

Continue reading Analyst Calls: AEO, BKC, BKE, GRA, KSP, MFE, PSS, TTWO, VPRT ...

Analyst Calls: AEO, BKC, BKE, GRA, KSP, MFE, PSS, TTWO, VPRT ... originally appeared on BloggingStocks on Fri, 03 Sep 2010 12:00:00 EST. Please see our terms for use of feeds.

Back in 2002, Burger King (BKC) went private in a $1.5 billion deal (at the time, the food chain was owned by Diageo PLC). Then in 2006, the company came back to the public markets, providing a nice return for the private equity sponsors, which included TPG Capital, Goldman Sachs Capital Partners and Bain Capital.

OK, so how about going private again? Actually, this is the latest rumor making the rounds. Although, it sounds like the negotiations are in the early stages.

Continue reading Burger King Looking for a Buyout?

Burger King Looking for a Buyout? originally appeared on BloggingStocks on Wed, 01 Sep 2010 11:20:00 EST. Please see our terms for use of feeds.

Burger King (BKC) really laid a whopper Tuesday when it announced weaker-than-expected earnings.

Burger King said net income fell to $49 million, or 36 cents a share, during its fiscal fourth quarter, compared to $58.9 million, or 44 cents a share, a year earlier.

It looks like Burger King's successful attempt to court young males with its brash commercials and willingness to indulge a less-than-healthy appetite has hurt the company during the recession -- as this demographic has been disproportionately hit with job losses in construction and manufacturing.

Continue reading Burger King Lays a Whopper ... Invest in the Big Mac

Burger King Lays a Whopper ... Invest in the Big Mac originally appeared on BloggingStocks on Tue, 24 Aug 2010 15:30:00 EST. Please see our terms for use of feeds.

McDonald's Corporation (MCD) was down roughly 2% as I began composing this piece during the afternoon session. I hope investors weren't paying attention to the bears who were in control of the fast-food giant's shares. To me, the stock seems to be in good shape, and in the kind of trading climate we're in, it could be a useful instrument for the cautious player.

I'm seeing a quote of around $70 go by on my screen. Not bad in the least, considering that the 52-week high is $71.84. It shows the kind of resilience the stock possesses. Indeed, considering how many equities have pulled back from their 52-week highs, you've got to enjoy this element of the story.

Continue reading McDonald's Receives Bearish Reaction to Latest Earnings

McDonald's Receives Bearish Reaction to Latest Earnings originally appeared on BloggingStocks on Fri, 23 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Yum! Brands Didn't Excite Wall Street with Q2 Numbers

Yum! Brands Didn't Excite Wall Street with Q2 Numbers originally appeared on BloggingStocks on Wed, 14 Jul 2010 09:00:00 EST. Please see our terms for use of feeds.

There is a decidedly global flavor to KFC, Taco Bell and Pizza Hut restaurants lately. And no, we're not talking about the Chalupa Baja -- this is about a global sales for these franchises and their parent company.

In recent years, operator Yum! Brands (YUM) has been growing at a breakneck pace, now with more than 3,500 locations in China alone and plans to open another 900 restaurants outside the U.S. in 2010. And the next global market that is in its sights is the United Kingdom, with a Taco Bell in Essex set to peddle low-priced burritos by the end of June.

Continue reading Expansion in UK the Latest Way Yum! Spices Up Global Sales

Expansion in UK the Latest Way Yum! Spices Up Global Sales originally appeared on BloggingStocks on Fri, 28 May 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading BK Wins Lawsuit over Burger Prices, Loses Investor Confidence

BK Wins Lawsuit over Burger Prices, Loses Investor Confidence originally appeared on BloggingStocks on Mon, 24 May 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Smoothies Newest Part of McDonald's Beverage Strategy

Smoothies Newest Part of McDonald's Beverage Strategy originally appeared on BloggingStocks on Tue, 18 May 2010 16:00:00 EST. Please see our terms for use of feeds.

I'm not a fan of Wendy's/Arby's Group (WEN). It just doesn't seem as safe as stocks like Burger King (BKC), McDonald's (MCD), or Yum! Brands (YUM). Of course, I'm certain I did nothing more than state the obvious.

As a low-priced equity, Wendy's/Arby's Group always possesses the risk of volatility. Today, the shares are off by over 3% in afternoon trading; at the time of this writing, I saw a share price of $4.93. Hey, it's better than the day low of $4.86. The company had reported earnings results for the first quarter Thursday morning. Do the numbers make the company look more or less attractive?

Continue reading Wendy's/Arby's Group: Avoid After Q1?

Wendy's/Arby's Group: Avoid After Q1? originally appeared on BloggingStocks on Thu, 13 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading BK and McDonald's Trade Punches with Promotions

BK and McDonald's Trade Punches with Promotions originally appeared on BloggingStocks on Tue, 04 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Aflac Inc. (AFL) higher Q1 earnings were better than analysts expected, due in part to a stronger yen.
• Automatic Data Processing Inc. (ADP) Q3 EPS were the same as a year ago and revenue inched higher.
• BlackRock Inc. (BLK) higher Q1 earnings fell short of analysts' expectations due to acquisition-related charges.
• Broadcom Corp. (BRCM) posted record revenue in Q1 and swung to a profit from a year-ago loss.
• Burger King Holdings Inc. (BKC) topped Wall Street's Q3 earnings estimate, but same-store sales fell.

Continue reading Earnings Highlights: Caterpillar, Comcast, DreamWorks, Ford, Kodak, P&G and More

Earnings Highlights: Caterpillar, Comcast, DreamWorks, Ford, Kodak, P&G and More originally appeared on BloggingStocks on Sat, 01 May 2010 12:40:00 EST. Please see our terms for use of feeds.

Fast-food giant McDonald's (MCD) is without doubt the quintessential American fast-food restaurant -- but it is also a global name with strong sales at global stores. The company makes products enjoyed around the world and it offers those products at a price point accessible to nearly everyone.

Certainly, fast-food consumers have demonstrated a taste for McDonald's. But investors also have a taste for MCD stock. Over the past five years, the stock has shot up nearly 138% and so far this year there's been no sign the stock is slowing down. The restaurant stock now trades at 52-week highs.

Continue reading Three Reasons to Buy McDonald's Stock

Three Reasons to Buy McDonald's Stock originally appeared on BloggingStocks on Fri, 30 Apr 2010 13:30:00 EST. Please see our terms for use of feeds.

Seattle coffee icon Starbucks (SBUX) has been on the resurgence in 2010 after consumers fled during the Great Recession. In order to keep the profits percolating, SBUX is looking to roll out a fresh new menu of Frappucinos and iced coffee for the hot summer months.

Growth is crucial for SBUX stock now after it has weathered the worst of the economic downturn. Notable achievements over the past few months include:

• The announcement of the first-ever cash dividend to SBUX stock owners.
• Gains of about 220% in Starbucks shares since the 2009 lows, from $8.24 on March 9, 2009, to the mid-$26 range today.
• Four straight earnings reports topping Wall Street forecasts, with an average earnings surprise of almost 20%.

Continue reading Starbucks Hopes Summer Menu Heats Up Sales

Starbucks Hopes Summer Menu Heats Up Sales originally appeared on BloggingStocks on Thu, 29 Apr 2010 15:30:00 EST. Please see our terms for use of feeds.

Burger King (BKC) is turning up the heat in its war with McDonalds (MCD) for early morning sales. In selected markets, Burger King is advertising the availability of a "Burger King brunch" in a quest to cash in on lucrative morning sales. This is only a few months after announcing Burger King will carry coffee made by Starbucks to provide a more flavorful alternative to its BK Joe coffee.

This is what the fast-food breakfast wars have become: Mimosas at the drive-thru window.

Continue reading Can Burger King's 'Brunch' Menu Take Bite out of McDonalds?

Can Burger King's 'Brunch' Menu Take Bite out of McDonalds? originally appeared on BloggingStocks on Wed, 21 Apr 2010 14:30:00 EST. Please see our terms for use of feeds.

Yum! Brands (YUM), owner of KFC and Taco Bell, operates in the same industry as McDonald's (MCD), Burger King (BKC), and Wendy's/Arby's Group (WEN). All of these stocks are either at or near their respective 52-week highs. How does Yum! Brands look after its first-quarter report?

You've got to take notice of this stock. The one-year chart depicts an equity that consolidated for a while, only to finally break out and head to the upside. And here's some more good news for both traders and investors alike: Wednesday, the shares closed the regular session 1.8% higher from where they started. Then, during the after-hours session, following distribution of the earnings release, the bulls, deciding they wanted to remain in charge, gave the company another boost.

Continue reading Add Yum! Brands to Your Portfolio?

Add Yum! Brands to Your Portfolio? originally appeared on BloggingStocks on Thu, 15 Apr 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Can Value Menu Turn Around Arby's?

Can Value Menu Turn Around Arby's? originally appeared on BloggingStocks on Tue, 13 Apr 2010 11:30:00 EST. Please see our terms for use of feeds.

I've never been to a Sonic (SONC) joint. I'm sure I would love the food; however, I can definitively state that I did not like the company's current earnings report, which was released yesterday after the bell.

For the second quarter, Sonic lost one penny per share. Last year, the business brought in 14 cents per share of positive profit, helped along by a gain of 6 cents attributable to a debt purchase. The current performance was unfortunately below estimates; the market wanted 2 cents of income to show up on the bottom line.

Continue reading Sonic's Q2: A Not-Too-Tasty Decline in Comps

Sonic's Q2: A Not-Too-Tasty Decline in Comps originally appeared on BloggingStocks on Wed, 24 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

Analyst Upgrades

• FBR Capital upgraded Nike (NKE) to outperform from market perform. The firm believes the company's momentum is building following the better-than-expected Q3 report and raised its target for the stock to $84 from $67.
• Thomas Weisel upgraded Corning (GLW) to overweight from market weight, citing improving profitability and cash flow trends. The firm has a $24 price target for shares.
• Deutsche Bank upgraded Burger King (BKC) to buy from hold, citing valuation and potential positive catalysts from the bottoming of sales trends and easy comparisons. The firm raised its price target on shares to $24 from $19.
• Broadcom (BRCM) was upgraded to buy from neutral at Goldman.
• Energizer (ENR) was upgraded to overweight from neutral at JPMorgan.
• Guess (GES) was upgraded to buy from hold at Lazard Capital.

Continue reading Analyst Calls: ATHN, BKC, BRCM, GES, GLW, JOYG, NDAQ, NKE, SPMD ...

Analyst Calls: ATHN, BKC, BRCM, GES, GLW, JOYG, NDAQ, NKE, SPMD ... originally appeared on BloggingStocks on Thu, 18 Mar 2010 11:30:00 EST. Please see our terms for use of feeds.

Yum! Brands (YUM), a collection of restaurant chains operating in the same space as McDonald's (MCD) and Burger King (BKC), didn't post the most exciting earnings report last month, but it might not matter. Just recently, shareholders received a couple pieces of good news.

First, UBS offered inspiring comments about the company and the stock last week. Shares were upgraded to buy status, rising from neutral. A higher price target of $44 was issued. The catalyst basically centers on things getting better on a fundamental basis for the restaurant brands; also, China's sales appear to have stabilized.

Continue reading Shareholders of Yum! Brands Receive Good News This Month

Shareholders of Yum! Brands Receive Good News This Month originally appeared on BloggingStocks on Tue, 16 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

Wendy's/Arby's Group (WEN) is a stock that really isn't for most investors (in my opinion). It's not what I would call a quality name. If you want to play the fast-food sector, you'd be better off with McDonald's (MCD) or Yum! Brands (YUM).

Burger King (BKC), although not my favorite member of the list, might also be a more attractive selection than Wendy's/Arby's Group. I don't mean to be down on the fast-food entity, but it just isn't in the same league as those other investment ideas. Plus, a look at the fourth-quarter report shows that management has quite a bit of work to do.

Continue reading Wendy's/Arby's Group: Q4 Comps Don't Inspire

Wendy's/Arby's Group: Q4 Comps Don't Inspire originally appeared on BloggingStocks on Fri, 05 Mar 2010 10:00:00 EST. Please see our terms for use of feeds.