You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Major Subway franchisee MTF Enterprises and its five business affiliates (including operations outside the restaurant industry like MTF Childcare) has filed for Ch. 11 bankruptcy.   The Lancaster, Penn.-based restaurant franchisee, which operates 43 Subway locations in Pennsylvania, Maine, New Hampshire, and Virginia, filed for bankruptcy on Jan. 21 in the Eastern District of Pennsylvania, citing an inability to pay ...

Core Viewpoint - Yum! Brands, Inc. (YUM) is expected to report strong fourth-quarter results, with earnings per share (EPS) projected at $1.78 and revenues at $2.47 billion, reflecting solid growth compared to the previous year [2][8]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for fourth-quarter EPS is $1.78, indicating a rise of 10.6% from $1.61 reported in the same quarter last year [2]. - The consensus revenue estimate is $2.47 billion, suggesting a 4.4% increase from the previous year's figure [2]. Group 2: Factors Influencing Performance - Yum! Brands' performance is likely to benefit from global unit expansion, strong demand across core brands, and sustained momentum in digital sales [3]. - Menu innovation, limited-time offerings, and value platforms are expected to enhance performance, with digital ordering and loyalty engagement supporting traffic trends [4]. - Strong performance from KFC's international business, driven by brand relevance and local menu adaptations, is anticipated to contribute positively, with KFC revenues predicted to rise 7.7% year over year to $1.04 billion [4]. Group 3: Challenges and Costs - Elevated costs and challenges at Pizza Hut may negatively impact consolidated results, with management noting uneven performance and unit closures in certain international markets [6]. - Ongoing investments in marketing, technology, and development are expected to limit margin expansion, with company restaurant expenses predicted to rise 1.1% year over year to $735 million [6]. Group 4: Earnings Prediction and Stock Outlook - The model predicts an earnings beat for Yum! Brands, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [7][9]. - Yum! Brands is likely to report Q4 EPS of $1.78 on revenues of $2.47 billion, benefiting from digital sales strength and strong KFC performance, while facing headwinds from higher costs and uneven Pizza Hut results [8].

Once the second-most common U.S. restaurant type, pizzerias are now outnumbered by coffee shops and Mexican food eateries.Has America hit peak pizza? 🔗 https://t.co/XMzna1NTjj https://t.co/MJYEDFWVUo ...

UK restaurants are turning to sharp discounts and offers to attract customers who are opting to save rather than spend on eating out, according to The Financial Times. The report comes as data from the Office for National Statistics indicates that the cost of eating at a restaurant or café was more than one-third higher in December than in the same month in 2019. Recent promotions from the restaurants include PizzaExpress offering a second main course for £1 and Frankie & Benny’s advertising a £5 burger ...

Company Overview - Sweetgreen, Inc. (NYSE:SG) is an American fast-casual restaurant chain founded in November 2006 and headquartered in Los Angeles, California, primarily offering salad bowls [3] - The company has achieved an average revenue growth of 25.8% over the past three years, ranking 10th among high-growth food stocks to buy [3] Recent Performance - In the third quarter of 2025, Sweetgreen reported sales of $172.4 million [2] - The company opened eight new restaurants during the quarter, including six Infinite Kitchen locations, marking its entry into the Arizona market for the first time [2] - Looking ahead, Sweetgreen plans to open 17 additional restaurants in the fourth quarter, expanding into new markets such as Sacramento, Cincinnati, and Northwest Arkansas [2] Analyst Insights - Goldman Sachs analyst Christine Cho raised the price target on Sweetgreen to $5.60 from $5 while maintaining a Sell rating on the shares [1] - The analyst noted that restaurant stocks, including Sweetgreen, have outperformed the S&P 500 year-to-date due to expectations for potential tariff relief, stimulus measures, and tax cuts that could support household consumption [1]

Company Overview - Kura Sushi USA, Inc. is a Japanese conveyor-belt sushi restaurant chain and the second-largest sushi chain in Japan, founded in 1977 and headquartered in Osaka, Japan, operating 69 locations across the United States [3]. Recent Developments - On January 16, Piper Sandler analyst Brian Mullan raised the price target on Kura Sushi USA, Inc. to $67 from $59 while maintaining a Neutral rating after an investor meeting at the ICR Conference in Orlando [1]. - The company discussed during its Fiscal Q1 2026 earnings call that the decoupling of the reservation system from the rewards program, implemented in December, could enhance consumer adoption of the platform, which will be important to monitor throughout the fiscal year [1]. - At the annual meeting on January 21, 2026, stockholders elected five directors, ratified KPMG LLP as the independent auditor for fiscal 2026, and approved executive compensation with approximately 92.9% of voting power represented [2]. - Claudia Schaefer, a marketing veteran, was elected as an independent director, replacing Kim Ellis, to add brand and marketing expertise as the company approaches the 100-unit milestone in the U.S. [2].

Company Overview - Wingstop Inc. is an American international fast-food chain founded in 1994, specializing primarily in buffalo wings, and began franchising in 1997 [3] Financial Performance - In the Fiscal Third Quarter of 2025, Wingstop opened 369 net new restaurants, achieving a 19% unit growth rate, which exceeded prior expectations [2] - The company is on track to open between 475 and 485 net new restaurants for the full year [2] - System-wide sales grew by 13% during the period, with trailing twelve-month system-wide sales surpassing $5 billion, indicating strong brand momentum and scalability [2] Analyst Insights - Morgan Stanley lowered its price target on Wingstop to $345 from $363 while maintaining an Overweight rating, reflecting a favorable long-term growth outlook within the quick-service restaurant sector [1]

Group 1 - Dutch Bros Inc. (NYSE:BROS) has been initiated with a Buy rating and an $82 price target by Citi, highlighting its ability to scale across the U.S. and the expected support from same-store sales drivers over the next 12 to 24 months [1] - The company reported revenue of $424 million for the third quarter of 2025, marking a 25% year-over-year increase, with expansion into six new states, bringing its total locations to 1,081 [2] - Dutch Bros has achieved an average revenue growth of over 37% in the past three years, ranking third among high-growth food stocks [3] Group 2 - The company plans to reach 2,029 shops by 2029, with approximately 175 new locations projected for 2026 [2]

We recently published an article titled 10 High Growth Food Stocks To Buy.  On January 16, Lake Street analyst Mark Smith lowered the firm’s price target on The ONE Group Hospitality, Inc. (NASDAQ:STKS) to $4 from $5 while maintaining a Buy rating on the shares. The revision followed the company’s release of preliminary fourth-quarter revenue and comparable sales results that came in below the firm’s expectations. Lake Street characterized the performance as a solid finish to the year despite a challengin ...

Core Insights - Investors should conduct a thorough review of a company's financial background rather than relying solely on real-time trading numbers, especially in a volatile market [1] - The interest coverage ratio is a critical indicator of a company's ability to meet its debt obligations, particularly in a tighter financial environment [2][4] Financial Metrics - Companies like Casey's General Stores, Brinker International, Cardinal Health, and Flowserve have strong interest coverage ratios, indicating their capacity to service debt [3] - The interest coverage ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense, providing insight into a company's financial stability [5] - A ratio below 1 indicates potential default risk, while a higher ratio suggests a company can withstand financial challenges [7] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B [8][11] - Stocks meeting these criteria are likely to outperform in various market conditions [11] Company Highlights - Casey's General Stores has a Zacks Rank of 1, with a trailing four-quarter earnings surprise of 24.1% and projected sales and EPS growth of 8.8% and 18.8%, respectively, leading to a 44.6% stock increase over the past year [10][12] - Cardinal Health holds a Zacks Rank of 2, with a trailing earnings surprise of 9.4% and projected sales and EPS growth of 16.4% and 21.5%, respectively, resulting in a 71.5% stock surge [12][13] - Brinker International, also with a Zacks Rank of 2, has a trailing earnings surprise of 8.2% and projected sales and EPS growth of 7.7% and 18.7%, but its stock has declined by 16.6% [13][14] - Flowserve, with a Zacks Rank of 2, shows a trailing earnings surprise of 10.5% and projected sales and EPS growth of 4.6% and 31.9%, leading to a 26.2% stock increase [14][15]