According to the GuruFocus All-In-One Screener, a Premium feature, the following restaurant companies were trading with low price-sales ratios as of April 6.
Darden Restaurants
Darden Restaurants Inc. (DRI) was trading around $45.48 per share with a price-sales ratio of 0.64 and a price-earnings ratio of 8.87.
The casual dining restaurant has a market cap of $5.5 billion. The stock has risen at an annualized rate of 5.43% over the past decade.
The discounted cash flow calculator gives the company a fair value of $59.60, suggesting it is undervalued with a 23% margin of safety, while the Peter Lynch Fair Value is $66.93.
The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.89%, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.82% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.4%.
Flanigan’s Enterprises
As of Monday, Flanigan’s Enterprises Inc. (BDL) was trading around $10.86 per share with a price-sales ratio of 0.17 and a price-earnings ratio of 5.93.
The small cocktail lounge chain has a market cap of $20.19 million. The stock has risen at an annualized rate of 6.67% over the past 10 years.
The DCF calculator gives the stock a fair value of $30.55, suggesting it is undervalued with a 64.45% of margin of safety. The Peter Lynch earnings line gives the stock a fair price of $27.45.
With 3.11% of outstanding shares, Simons’ firm is the company's largest guru shareholder.
Cracker Barrel Old Country Store
Cracker Barrel Old Country Store Inc. (CBRL) was trading around $70 on Monday with a price-sales ratio of 0.54 and a price-earnings ratio of 7.66.
The owner of restaurants has a market cap of $1.67 billion. The stock has risen at an annualized rate of 9.87% over the past decade.
The DCF calculator gives the company a fair value of $170.83, suggesting it is undervalued with a 59% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $137.
With 0.99% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.44% and Robert Olstein (Trades, Portfolio) with 0.16%.
Chipote Mexican Grill
Chipote Mexican Grill Inc. (CMG) was trading around $611 with a price-sales ratio of 3.10 and a price-earnings ratio of 49.39.
The burrito restaurant owner has a market cap of $16.97 billion. The stock has climbed at an annualized rate of 18.23% over the past 10 years.
The DCF calculator gives the company a fair value of $133, suggesting the stock is still overpriced by 361%, despite the most recent market correction. The Peter Lynch earnings line gives the stock a fair price of $185.
Some notable guru shareholders are Simons’ firm with 6.35% of outstanding shares, Bill Ackman (Trades, Portfolio)’s Pershing Square and Spiros Segalas (Trades, Portfolio)’ Harbor Capital with 1.41%.
Domino’s Pizza
Domino’s Pizza Inc. (DPZ) was trading around $328 with a price-sales ratio of 3.8 and a price-earnings ratio of 34.33.
The owner of pizza restaurants and related delivery services has a market cap of $12.81 billion. The stock has risen at an annualized rate of 37.92% over the past decade.
The DCF calculator gives the company a fair value of $272, suggesting it is undervalued with a 20.6% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $143.
The company's largest guru shareholder is Steve Mandel (Trades, Portfolio)’s Lone Pine Capital with 4.44% of outstanding shares, followed by Simons’ firm with 4.37% and Ken Fisher (Trades, Portfolio) with 1.92%.
Jack In The Box
Jack In The Box Inc. (JACK) was trading around $31.80 with a price-sales ratio of 0.83 and a price-earnings ratio of 12.02.
The operator of fast-casual and quick-service restaurants has a market cap of $720.56 million. The stock has risen at an annualized rate of 5.35% over the past decade.
The DCF calculator gives the company a fair value of $40.53, suggesting it is undervalued with a 21.44% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $39.90.
The company's largest guru shareholder is Jana Partners (Trades, Portfolio) with 2.97% of outstanding shares, followed by Cohen’s firm and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.08%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Dividend Stocks With Good Price-Earnings Ratios
- Insiders Roundup: NGM, Legg Mason
- 6 Retailers Trading With Low Price-Earnings Ratios
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