{"id":46323,"date":"2014-01-15T15:28:48","date_gmt":"2014-01-15T20:28:48","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=46323"},"modified":"2014-01-15T07:29:36","modified_gmt":"2014-01-15T12:29:36","slug":"fast-casual-new-buzzword-among-risk-capital-speculators","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/01\/15\/fast-casual-new-buzzword-among-risk-capital-speculators\/","title":{"rendered":"\u201cFast Casual\u201d the New Buzzword Among Risk-Capital Speculators"},"content":{"rendered":"

By Mitchell Clark, B. Comm.<\/a><\/p>\n

The great thing about noodles is that they\u2019re cheap\u2014and this is also what makes a restaurant chain selling noodles a very good investment opportunity.<\/p>\n

Restaurant stocks<\/a> should always be on any speculative investor\u2019s radar. Consumers\u2019 tastes change, disposable incomes change, and so on\u2026but there is always fervor to eat out, especially at the right price point.<\/p>\n

The latest buzzword in the world of chain restaurants is \u201cfast casual,\u201d a combination between a fast food quick-service outlet and a sit-down casual restaurant. There\u2019s going to be more and more of these types of chains coming to the market, and there have already been some hot (and expensive) initial public offerings (IPOs) in this sector recently.<\/p>\n

Among several fast casual restaurant stocks that recently listed, Noodles & Company (NDLS) out of Broomfield, Colorado just opened another 12 locations in its 2013 fourth quarter, bringing its total corporate-owned locations to 318, with 62 additional franchised restaurants.<\/p>\n

Typically, developing restaurant stocks that can offer the most capital appreciation potential on the stock market are those with a large number of corporate-owned locations. This enables management to keep full control over operations, while improving the concept as business conditions and geographic locations dictate.<\/p>\n

Noodles & Company came to market selling 5,357,143 shares at $18.00 a share with an overallotment of 803,571 shares. Illustrating the speculative fervor for restaurant stocks at the time, the company\u2019s shares opened around $36.00, and then proceeded to appreciate to $47.00 a share before consolidating for the rest of 2013.<\/p>\n

Recently, the company announced preliminary fourth-quarter results that came in just shy of the Street\u2019s estimates.<\/p>\n

Fourth-quarter 2013 sales are expected to be approximately $91.5 million for a gain of 17.4% over the fourth quarter of 2012. Comparable restaurant sales are estimated to gain 4.3% for corporate-owned locations. The company franchised an additional four restaurants in the most recent quarter.<\/p>\n

Like many newly listed stocks, there are a lot of high expectations built into the numbers for this company, and last year was perhaps the most ideal time for a company to sell shares to the marketplace.<\/p>\n

Noodles & Company sold off on its preliminary fourth-quarter numbers, and I think speculative investors should now put this growing chain on their radar. IPOs are almost always overpriced, but that doesn\u2019t mean that the underlying companies aren\u2019t growth stories.<\/p>\n

IPOs often sell off on corporate developments that don\u2019t quite meet or exceed Wall Street\u2019s expectations. But IPOs often retrench in price after listing, and even more often, speculative investors can pick them up at better prices than recently traded.<\/p>\n

Trading stocks that are new listings is all about managing expectations and risk\u2014both those related to what the Street is looking for and those achieved by the underlying business. (See \u201cTwo Old Restaurant Stocks Offer Investors Growth<\/a>.\u201d)<\/p>\n

Restaurant stocks come and go, but when the action in the broader market is decent, they can often turn out to be very good moneymakers for risk-capital speculators.<\/p>\n

Any aggressive equity market portfolio would be well served by having some exposure to this sector. Restaurant stocks were a favorite of the famous money manager Peter Lynch, and this investment theme has not gone out of style. (See \u201cHow Peter Lynch Got It Right 20 Years Ago<\/a>.\u201d)<\/p>\n

 <\/p>\n

This article \u201cFast Casual\u201d the New Buzzword Among Risk-Capital Speculators<\/a> was originally published at Profit Confidential<\/a><\/p>\n

\n

\n","protected":false},"excerpt":{"rendered":"

By Mitchell Clark, B. Comm. The great thing about noodles is that they\u2019re cheap\u2014and this is also what makes a restaurant chain selling noodles a very good investment opportunity. Restaurant stocks should always be on any speculative investor\u2019s radar. Consumers\u2019 tastes change, disposable incomes change, and so on\u2026but there is always fervor to eat out, … <\/p>\n

Continue reading “\u201cFast Casual\u201d the New Buzzword Among Risk-Capital Speculators”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-46323","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/46323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=46323"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/46323\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=46323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=46323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=46323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}