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#3,884
#3,884
UTSuave’ said:
Dang!...do you think it will bounce back?...I’m looking at the MacD and it looks bottomed out compared to its last major dip and recovery I’ll probably buy in again
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I still have faith in them. The investigation didnt hurt them too bad imo. I just expected a quicker bounce back once it was over.
 
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#3,888
#3,888
Did a little more research on QSR and EAT

QSR - Popeyes is killing it, BK has flat same store sales and Tim Hortons is struggling. Biggest concern with stock is are they over-valuing Popeyes? I agree with everyone who has mentioned the customer service issues at these locations. I'd love a dip into the 40s. If they can fix their customer service issues, this could be a good long term buy. They don't have to get to Chick Fil A level of service, if they can get to McDonalds level, that would be an improvement.

EAT - 52 week high is $47 and pre COVID traded in low to mid 40s. They did dilute stock (15%) by issuing more shares during COVID. They are back to positive cash flow at restaurants so the liquidity concerns that Ruby and Fridays have aren't as in play here. I do have some longer term concerns but the potential for a 50% return (to approx. $32) exists over the next 24 months. This level of restaurant would definitely benefit from another round of stimulus.
 
#3,889
#3,889
BigOrangeMojo said:
Did a little more research on QSR and EAT

QSR - Popeyes is killing it, BK has flat same store sales and Tim Hortons is struggling. Biggest concern with stock is are they over-valuing Popeyes? I agree with everyone who has mentioned the customer service issues at these locations. I'd love a dip into the 40s. If they can fix their customer service issues, this could be a good long term buy. They don't have to get to Chick Fil A level of service, if they can get to McDonalds level, that would be an improvement.

EAT - 52 week high is $47 and pre COVID traded in low to mid 40s. They did dilute stock (15%) by issuing more shares during COVID. They are back to positive cash flow at restaurants so the liquidity concerns that Ruby and Fridays have aren't as in play here. I do have some longer term concerns but the potential for a 50% return (to approx. $32) exists over the next 24 months. This level of restaurant would definitely benefit from another round of stimulus.
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I think that EAT will outlast other full service brands. Dollars have been moving from full service to fast casual, but full service will not vanish. They'll just be right sized as the bad ones like Ruby's and Applebee's go away.

QSR seems like a pretty well run company at the corporate level. Hard to say if they'll be able to fix their operational issues.
 
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#3,897
#3,897
Thunder Good-Oil said:
I think that EAT will outlast other full service brands. Dollars have been moving from full service to fast casual, but full service will not vanish. They'll just be right sized as the bad ones like Ruby's and Applebee's go away.

QSR seems like a pretty well run company at the corporate level. Hard to say if they'll be able to fix their operational issues.
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I agree with both your thoughts. I think the Chili's, Darden will do well short term if there is another stimulus. I don't love this industry long-term but there's a chance for some outsized gains in the intermediate term if you get positive COVID news. I did start position in EAT this morning at 21.27. Didn't pull trigger on QSR.

Did you get into SCHW?
 
#3,899
#3,899
BigOrangeMojo said:
I agree with both your thoughts. I think the Chili's, Darden will do well short term if there is another stimulus. I don't love this industry long-term but there's a chance for some outsized gains in the intermediate term if you get positive COVID news. I did start position in EAT this morning at 21.27. Didn't pull trigger on QSR.

Did you get into SCHW?
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Biding my time. Probably going to be a long term hold rather than a trade. I'm interested in Cintas as well but haven't checked on the valuation yet. A lot of what I'm m interested in hasn't been cheap. I missed the market bottom but being a heavy user of margin I have to be careful. Thankfully I haven't seen a margin call for about 12 years now.
 
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