This consumer-facing enterprise has crushed the S&P 500 over the long run.If you're searching for potential investment opportunities, perhaps a good place to start is by looking at past winners. There's one business that has posted a fantastic gain in recent decades.Since this restaurant chain's initial public offering in 1992, the stock price has surged more than 27,000% higher (as of Feb. 3). Including the dividend, the total return balloons to an even more impressive 36,470%. This performance is 11 times ...

Core Insights - Chipotle Mexican Grill is facing challenges with comparable-store sales declining for the third time in four quarters, with a 2.5% drop in Q4 despite a slight increase in average check size [3][4] - The stock has shown resilience, recovering from a 38% decline in 2025, suggesting it may have reached a bottom [1][8] Financial Performance - In Q4, Chipotle's revenue increased by 4.9% to $2.98 billion, with adjusted earnings per share (EPS) remaining flat at $0.25, slightly above analysts' expectations of $0.24 [3] - The restaurant-level operating margin decreased by 140 basis points to 24.5%, indicating profitability pressures, which are expected to continue into 2026 [4] Growth Strategy - Chipotle opened 334 company-owned restaurants in 2025, with plans to open 350 to 370 in 2026, including 10 to 15 international locations [6] - The company aims to increase average unit volumes from $3.1 million to $4 million and achieve a 30% restaurant-level operating margin in the long term [4] Future Outlook - The company forecasts flat same-store sales for 2026, adopting a conservative approach due to economic uncertainties, while also focusing on menu innovation and customer engagement through a relaunch of its rewards program [7] - Despite the challenges, Chipotle's stock is trading at a forward price-to-earnings (P/E) multiple of over 32 times based on 2026 estimates, leading to a cautious stance on investment opportunities in the consumer discretionary sector [8]

Core Viewpoint - Principal Financial Group Inc. reduced its stake in Darden Restaurants by 2.2% in Q3, holding 139,005 shares valued at approximately $26.46 million after selling 3,185 shares [2] Institutional Holdings - Several hedge funds have significantly increased their positions in Darden Restaurants, with Marshall Wace LLP growing its stake by 820.4% to 706,416 shares valued at $153.98 million [3] - Invesco Ltd. raised its holdings by 45.2% to 1,917,398 shares worth $417.94 million [3] - Arrowstreet Capital increased its position by 192.6% to 880,765 shares valued at $191.98 million [3] - Norges Bank established a new position worth about $125.52 million [3] - AQR Capital Management raised its stake by 239.4% to 722,529 shares valued at $157.49 million [3] - Institutional investors collectively own 93.64% of Darden's stock [3] Insider Transactions - CFO Rajesh Vennam sold 6,774 shares at an average price of $214.12, totaling approximately $1.45 million, reducing his position by 42.84% [4] - Insider John W. Wilkerson sold 2,258 shares at an average price of $213.00, totaling about $480,954, representing an 11.27% decrease in ownership [4] - Over the last ninety days, insiders sold 18,770 shares worth approximately $3.95 million, with corporate insiders owning 0.49% of the stock [4] Financial Performance - Darden Restaurants reported Q2 earnings of $2.08 per share, missing estimates by $0.02, with revenue of $3.10 billion, exceeding expectations of $3.07 billion [6] - Revenue increased by 7.3% year-over-year, with a return on equity of 52.44% and a net margin of 8.92% [6] - The company has set FY 2026 EPS guidance at $10.50 to $10.70, with analysts predicting an EPS of $9.52 for the current fiscal year [6] Dividend Information - Darden announced a quarterly dividend of $1.50, resulting in an annualized dividend of $6.00 and a dividend yield of 2.8% [7] - The payout ratio stands at 62.89% [7] Stock Performance and Valuation - Darden's shares opened at $216.28, with a market cap of $24.90 billion [5] - The company has a price-to-earnings ratio of 22.67 and a price-to-earnings-growth ratio of 2.05 [5] - The stock has a 12-month low of $169.00 and a high of $228.27 [5] Analyst Ratings and Price Targets - Analysts have varied ratings on Darden, with Stephens maintaining an "equal weight" rating and a target price of $205.00 [9] - Morgan Stanley reduced its price target from $238.00 to $236.00 while maintaining an "overweight" rating [9] - KeyCorp and Weiss Ratings have also provided positive ratings, with Weiss upgrading to "buy" [9] - The consensus rating is "Moderate Buy" with an average target price of $224.78 [9]

Investment Activity - Transce3nd LLC increased its stake in Starbucks by 270.3% in Q2, now owning 274 shares valued at $25,000 after acquiring 200 additional shares [1] - PFS Partners LLC raised its holdings by 457.4% in Q3, owning 340 shares worth $29,000 after buying 279 shares [1] - RMG Wealth Management LLC increased its stake by 109.9% in Q3, now holding 382 shares valued at $33,000 after acquiring 200 shares [1] - Nexus Investment Management ULC acquired a new stake worth $35,000 in Q2 [1] - Institutional investors own 72.29% of Starbucks stock [1] Analyst Ratings and Price Targets - Citigroup lowered its target price from $94.00 to $92.00, maintaining a "neutral" rating [2] - Zacks Research upgraded Starbucks from "strong sell" to "hold" [2] - BMO Capital Markets reiterated an "outperform" rating with a target price of $120.00 [2] - Barclays set a target price of $116.00 with an "overweight" rating [2] - Deutsche Bank reissued a "buy" rating with a target price of $113.00 [2] - Consensus rating is "Moderate Buy" with an average target price of $104.67 [2] Insider Transactions - Director Jorgen Vig Knudstorp purchased 11,700 shares at an average cost of $85.00, totaling $994,500, increasing his position by 28.26% [3] Financial Performance - Starbucks reported $0.56 EPS for the last quarter, missing estimates by $0.03, with revenue of $9.92 billion, exceeding estimates of $9.62 billion [5] - Revenue increased by 5.5% compared to the same quarter last year [5] - The company has set FY 2026 EPS guidance at 2.150-2.400 [5] - Analysts anticipate an average EPS of 2.99 for the current fiscal year [5] Stock Performance and Dividends - Starbucks stock opened at $99.45, with a market capitalization of $113.30 billion and a PE ratio of 82.19 [4] - The stock has a 12-month low of $75.50 and a high of $117.46 [4] - A quarterly dividend of $0.62 per share will be paid on February 27, representing an annualized dividend of $2.48 and a yield of 2.5% [6][7]

Key Takeaways MCD's Q4 results are likely supported by value positioning, promotions, digital engagement and unit expansion.MCD likely benefited from digital engagement, supported by loyalty growth and digital-led promotions.McDonald's margins likely faced pressure from higher food and labor costs and elevated marketing spend in Q4.McDonald's Corporation (MCD) is scheduled to report fourth-quarter 2025 results on Feb. 11, 2026.MCD’s earnings beat the Zacks Consensus Estimate in two of the trailing four quar ...

Core Viewpoint - The comparison between Compass Group PLC (CMPGY) and Dutch Bros (BROS) indicates that CMPGY presents a better value opportunity for investors at this time due to its stronger earnings outlook and more attractive valuation metrics [1][3][7]. Valuation Metrics - CMPGY has a forward P/E ratio of 19.80, significantly lower than BROS's forward P/E of 61.16, suggesting that CMPGY is more reasonably priced relative to its earnings [5]. - The PEG ratio for CMPGY is 1.73, while BROS has a PEG ratio of 1.98, indicating that CMPGY's expected earnings growth is more favorable compared to its price [5]. - CMPGY's P/B ratio stands at 6.41, compared to BROS's P/B of 9.97, further highlighting CMPGY's relative undervaluation [6]. Investment Ratings - CMPGY holds a Zacks Rank of 2 (Buy), indicating a positive outlook, while BROS has a Zacks Rank of 4 (Sell), suggesting a less favorable investment position [3][7]. - The Value grade for CMPGY is B, reflecting its strong valuation metrics, whereas BROS has a Value grade of F, indicating poor valuation [6].

Core Insights - The restaurant industry is facing mixed operating conditions characterized by cautious consumer spending, cost pressures, and the need to protect margins without sacrificing traffic [1][2] Company Overview - Rave Restaurant Group, Inc. (RAVE) operates an asset-light, franchise-driven model focused on Pizza Inn and Pie Five, generating revenue mainly through royalties and franchise-related fees [1][2] - Ark Restaurants Corp. (ARKR) employs a more asset- and operations-intensive model, owning and running a portfolio of full-service and fast-casual restaurants, which exposes it to higher operational risks [1][2] Stock Performance & Valuation - RAVE has outperformed ARKR in stock performance, with RAVE up 11.2% over the past three months and 35.3% over the past year, while ARKR is down 3.7% and 44.1% respectively [3] - RAVE's trailing 12-month enterprise value-to-sales (EV/S) ratio is 2.8X, above its five-year median of 1.9X, while ARKR's is at 0.1X, below its median of 0.3X [5] Factors Driving Rave Restaurant's Stock - RAVE's focused, franchise-led strategy aims for consistent profitability, supported by the strength of the Pizza Inn brand and solid franchisee engagement [8] - The asset-light business model limits exposure to labor and food cost volatility, supporting margin stability and sustained profitability [9] - RAVE's strong balance sheet, with no debt and ample liquidity, provides strategic flexibility for franchise development and brand initiatives [10] Factors Driving Ark Restaurants' Stock - ARKR's performance is influenced by its diversified restaurant portfolio, with some locations showing improved efficiency despite challenges in others [11] - The ongoing lease dispute at Bryant Park has impacted results, but management reports positive cash flow from current operations, which may stabilize performance [12] - ARKR maintains solid liquidity and manageable leverage, with potential growth from its investment tied to the Meadowlands Racetrack [13] Investment Recommendation - RAVE is viewed as the more attractive investment option due to its strong stock performance, scalable structure, and fewer near-term execution risks [15][17] - ARKR's low valuation reflects ongoing operational uncertainties, and until these issues are resolved, the valuation gap may not lead to sustained upside [16]

Market Overview - Wall Street has experienced significant volatility since the beginning of the year, with major indexes giving up most of their gains recently [1][2] - Economic uncertainty, including higher inflation and borrowing rates, along with geopolitical tensions, has contributed to this volatility [2][4] - The S&P 500 dropped 1.23% to 6,798.40 points, entering negative territory for the year, while the Dow and Nasdaq also saw declines of 1.2% and 1.6% respectively [5] Economic Indicators - Job openings in December totaled 6.54 million, a decrease of 386,000 from November, marking the lowest level since September 2020 [6] - Jobless claims rose to 231,000 for the last week of January, up 22,000 from the previous week, exceeding the consensus estimate of 212,000 [7] - U.S. companies announced 108,435 layoffs in January, the highest total for that month since the global financial crisis [7] Federal Reserve Actions - The Federal Reserve maintained interest rates in January after a total reduction of 75 basis points last year, facing challenges from high inflation [8] Dividend-Paying Stocks - Investors are advised to consider dividend-paying stocks as a means to protect capital during market volatility [2] - The New York Times Company (NYT) announced a dividend of $0.23 per share, with a dividend yield of 1.06% and a payout ratio of 30% of earnings [10][12] - Yum China Holdings, Inc. (YUMC) declared a dividend of $0.29 per share, yielding 1.81% with a payout ratio of 40% of earnings [14][12] - Esquire Financial Holdings, Inc. (ESQ) announced a dividend of $0.20 per share, yielding 0.60% with a payout ratio of 12% of earnings [16][12]

Core Insights - The efficiency ratio is a key indicator of a company's financial health, reflecting how effectively it utilizes its assets and liabilities internally [1] - A selection of companies that have passed the efficiency screening process includes Owlet (OWLT), Texas Capital Bancshares (TCBI), Western Digital (WDC), and Brinker International (EAT) [1] Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance [2] - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3] - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold (COGS), with higher values reflecting better inventory management [4] - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5] Screening Criteria - The screening process utilized efficiency ratios that exceed industry averages, narrowing down the stock universe from over 7,906 to six candidates [7] - The screening also included a favorable Zacks Rank, specifically Zacks Rank 1 (Strong Buy), to enhance profitability [6] Company Highlights - **Owlet (OWLT)**: Achieved an average four-quarter positive earnings surprise of 87.8% after passing the efficiency screen [8][9] - **Texas Capital Bancshares (TCBI)**: Recorded a 15.1% average four-quarter earnings surprise, serving major Texas metropolitan clients [8][10] - **Western Digital (WDC)**: Developed NAND flash and HDD storage solutions, with an 11.2% average four-quarter earnings surprise [8][11] - **Brinker International (EAT)**: Operates various restaurant brands and has an average four-quarter positive earnings surprise of 8.2% [8][12]

Core Insights - Papa John's Canada is launching a limited-time heart-shaped pizza called "Pizza My Heart" for Valentine's Day, available from February 9 to February 15, 2026 [1][2][3] Product Details - Pizza My Heart is a one-topping heart pizza on thin crust, made with fresh, never frozen dough, vine-ripened tomato sauce, and real mozzarella cheese [2][7] - The pizza is priced at $17.99, providing a festive option for customers celebrating Valentine's Day at home [2] Company Background - Papa John's International, Inc. was founded in 1984 with a focus on using high-quality ingredients to create superior quality pizzas [4] - The company is the third-largest pizza delivery chain globally, operating approximately 6,000 restaurants in around 50 countries and territories [4]