1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (2351)  | Author's Website |

6 Restaurants Trading With Low Price-Earnings Ratios

Cheesecake Factory on the list

As of Thursday, the GuruFocus All-in-One Screener, a Premium feature, found that the following restaurants stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.

Cheesecake Factory

With a market cap of $848 million, Cheesecake Factory Inc. (CAKE) has a price-earnings ratio of 6.62. According to the DCF calculator, the stock has a fair value of $46.05 while trading at $18.87.

01ad23c6849a631c187b4e6587b3494d.png

The stock has lost 60% over the last 12 months and is now 63.11% below the 52-week high and 29.96% above the 52-week low.

The company has a GuruFocus profitability rating of 8 out of 10. The return on equity of 23.07% and return on assets of 5.96% are outperforming 73% of companies in the restaurants industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.36.

The company’s largest guru shareholder is Ron Baron (Trades, Portfolio) with 1.79% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 1.2% and Richard Snow (Trades, Portfolio) with 0.52%.

Arcos Dorados Holdings

With a $733 million market cap, Arcos Dorados Holdings Inc. (ARCO) is trading with a price-earnings ratio of 8.65.

164f4a597cd27dd0904ab85bd5401171.png

The share price has declined 49% over the past 12 months and is now 59% below the 52-week high and 12.7% above the 52-week low.

The operator of restaurants under the McDonald’s brand has a GuruFocus profitability rating of 7 out of 10. The return on equity of 14.98% and return on assets of 3.09% are outperforming 57% of companies in the restaurants industry. Its financial strength is rated 4 out of 10. The equity-asset ratio of 0.16 is below the industry median of 0.38.

Bill Gates (Trades, Portfolio)’ Foundation is the company’s largest guru shareholder with 1.49% of outstanding shares, followed by Charles de Vaulx (Trades, Portfolio) with 0.45% and IVA International Fund (Trades, Portfolio) with 0.36%.

Bloomin Brands

With a market cap of $671 million, Bloomin Brands Inc. (BLMN) is trading with a price-earnings ratio of 5.36 and a price-book ratio of 4. According to the DCF calculator, the stock has a fair value of $15.41 while trading at about $7.70.

cfe3317f7bb11b1b5811023153995914.png

Shares have tumbled 61% over the last 12 months and are now trading 68.22% below the 52-week high and 70% above the 52-week low.

The operator of casual dining restaurants has a Gurufocus profitability rank of 7 out of 10. The company's return on equity of 86.44% and return on assets of 3.94% are outperforming 59% of companies in the restaurants industry. The cash-debt ratio of 0.03 is below the industry median of 0.36.

The company’s largest guru shareholder is Jana Partners (Trades, Portfolio) with 9.18% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio)’s GMO with 0.65% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.11%.

Denny’s

Denny’s Corp. (DENN) has a market cap of $529 million and is trading with a price-earnings ratio of 4.98. According to the DCF calculator, the stock has a fair value of $28.21 while trading at about $9.50.

7329a1f6bd51dd7aa1f6fe3760f811de.png

Shares have tumbled 48% over the last 12 months and are now trading 60.39% below the 52-week high and 110% above the 52-week low.

GuruFocus gives the company a profitability rating of 8 out of 10. The return on assets of 27.98% is outperforming 98% of companies in the restaurants industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.36.

With 5.25% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technology is the company’s largest guru shareholder, followed by GAMCO Investors with 0.33% and Robert Olstein (Trades, Portfolio)’s firm with 0.09%.

Brinker International

Brinker International Inc. (EAT) has a market cap of $578 billion. Its shares are trading with a price-earnings ratio of 4.24. According to the DCF calculator, the stock has a fair value of $78 while trading at $15.47.

50e18b999ee1e90de932f1f63b17ff3d.png

Share prices have declined 65% over the past 12 months and are currently trading 67.48% below the 52-week high and 121% above the 52-week low.

The Dallas-based restaurant company has a GuruFocus profitability rating of 8 out of 10. The return on assets of 7.9% is outperforming 81% of companies in the restaurants industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.01 is far below the industry median of 0.36.

The company’s largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.95% of outstanding shares, followed by Renaissance Technologies with 0.50% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.48%.

Dave & Buster’s Entertainment

Dave & Buster’s Entertainment Inc. (PLAY) has a market cap of $440 million. Its shares are trading with a price-earnings ratio of 5.15 and a price-book ratio of 2.97. According to the DCF calculator, the stock has a fair value of $29.96 while trading at $14.41.

91b93ccfff0f078ef65c31cf9d3cc6d0.png

Shares have declined 70% over a 12-month period and are currently trading 75.82% below the 52-week high and 212% above the 52-week low.

The owner of entertaining restaurants has a GuruFocus profitability rating of 7 out of 10. The return on equity of 33.33% and return on assets of 5.66% are outperforming 71% of companies in the restaurants industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.01 is below the industry median of 0.36.

The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio)’s Poin72 Asset Management with 0.71% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.16% and Snow with 0.15%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)