Big Money’s Top 5 Restaurant Stocks

[View in browser]( [The Juice Logo] BROUGHT TO YOU BY: [Logo]( Editor’s Note It’s Friday. Time to give you a stock pick from our sister newsletter, The Spill, so you can think about it over the weekend and maybe make a move Monday morning. While The Juice helps you be better with money across the board, The Spill focuses on stocks financial pros are researching and judges how good of buys they are. If you’re already sold, [you can sign up for The Spill – for free – here](. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheJuiceAlternate%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E98%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D615813?utm_medium=ic-nl&utm_source=118456 ) Proprietary Data Insights Financial Pros’ Top Restaurant Stock Searches in the Last Month Rank Ticker Name Searches #1 [SBUX]( Starbucks Corp 58 #2 [CMG]( Chipotle Mexican Grill 44 #3 [MCD]( McDonald's Corp 39 #4 [DPZ]( Domino's Pizza Inc 7 #5 [SHAK]( Shake Shack Inc 6 #ad [Why IntelGenx Could be Your Next Investment]( Brought to you by [DayTradeSPY]( [The Ultra-Reliable "Daily Payout Plan"]( [DayTradeSPY - The Ultra-Reliable "Daily Payout Plan"]( Since January 2023, when I launched my newest trading service, I’ve used it to hit on 94.2% of my recommended trades. That’s 253 winners out of 267 trades, and only 14 losses. My unique way of trading options almost never loses. This means my system is reliable, consistent, and dependable. Here’s what it IS: A simple, consistent options trading system that’s hit 94.3% of the time. To see how my system has won on 94.3% of its option trades, join me by clicking the link below. The next winning trade could be as soon as tomorrow. [Click here now.]( Should You Hold Starbucks (SBUX)? Starbucks (SBUX) surprised investors when it said same store sales declined last quarter for the first time since the pandemic. This was a rare miss for a company that’s steadily grown ~10% every year. But it could have been worse… Comparable transactions were down 22%, partially offset by a 10% increase in average ticket price. Unsurprisingly, traders hammered the stock and have yet to let up. However, the stock is now trading at a historically low valuation. So, is it worth keeping in your portfolio? Starbucks’ Business The Seattle coffee chain set the standard for mass caffeine brewing. People used to joke there were so many Starbucks, you could leave one and find yourself staring at another across the street. Today, the company is a global restaurant behemoth serving coffee and food to the masses with more than 18,000 stores in the U.S. and over 20,000 internationally. Starbucks reports its business along those same lines, with the U.S. accounting for 78% of total sales. [Results] [Source: Starbucks Investor Relations]( Most stores are owned and operated, though a small chunk are franchised. The latest earnings call didn’t inspire much confidence as management forecast negative growth for the remainder of the year. However, new store growth should help boost overall revenues. Financials [Financials] Source: Stock Analysis Starbucks is one of the most consistent restaurants stocks we’ve covered, with margins holding relatively steady over time. The one knock we see is the large debt increase in 2020, when total debt jumped from $11 billion to $25 billion. It has yet to pay that down. However, that debt is only costing them around $200 million extra annually. So, it makes sense they’d put more money towards their 3% dividend and share buybacks. Valuation [Valuation] Source: Seeking Alpha Relative to its peers, Starbucks trades at just 13x operating cash flow, almost half that of McDonald’s (MCD), which didn’t have such a great quarter either. However, forecasts put Starbucks at 18x forward cash flow, which isn’t so hot. It’s also interesting to see its price-to-sales down at 2.3x, 40% lower than its 5-year average. Growth [Growth] Source: Seeking Alpha Suffice to say, Starbucks’ slowdown is unusual. Typically, the company consistently grows sales every year. And lately, it’s been able to do so while keeping margins steady. That’s driven higher profitability and greater cash flow. Profitability [Profit] Source: Seeking Alpha It’s interesting to see Starbucks run one of the lowest gross margins of the group. Chipotle Mexican Grill (CMG), for example, is over 40%. However, Starbucks has the second best free cash flow margins next to McDonald’s. [Dive into Expert Picks - We Spill the Best Daily!]( Tired of stock search exhaustion? We've got you covered! We keep an eye on FinPros, distill their top picks, and serve you one daily. Make your inbox the go-to for expert insights. [Sign up today.]( Our Opinion 9/10 We believe the latest pullback in Starbucks creates a buying opportunity. While sales could slide further in the coming quarters, growth should resume within the next 12-18 months. So for a patient investor, this slow drip is worth the wait. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheJuiceAlternate%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E98%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D615813?utm_medium=ic-nl&utm_source=118456 ) News & Insights Freshly Squeezed - [Morgan Stanley’s Top 15 Stock Picks for 2024]( - [Beyond Traditional Investments: Embrace Diversity]( - [3 High-Yield Dividend Stocks Ready to Soar]( - [Check Out The Juice’s Favorite ETF Screener]( [News & Insights-facebook-share]( [News & Insights-twitter-share]( [News & Insights-linkedin-share]( [News & Insights-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheJuiceAlternate%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E98%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D615813?utm_medium=ic-nl&utm_source=118456 ) [We want to hear from you. Let us know your thoughts by clicking here]( [Pixel] [InvestingChannel Logo](#) Follow us on: [Facebook Logo]( [LinkedIn Logo]( [Twitter Logo]( [Instagram Logo]( To ensure delivery of all emails, [allow us on your list](. Manage your subscriptions with our [preference center](. [Unsubscribe here.]( View our privacy policy [here](. Copyright ©2024 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](