With the holiday shopping season officially underway,
consumers are flooding stores to grab their share of deals, free
gifts and more. But while you're waiting endlessly to buy your
teenager's dream gift, or trying out a new dress, or busy
matching shoes, guess what's at the back of your mind -- a ready
meal with the minimum of fuss and next to no waiting time at the
end of it all. And that's precisely why quick service restaurants
(QSRs) will see higher sales this season (as in all such
"McDeals" Are Heading Home
So when everything is so perfect, why would a company like
) that has grown phenomenally over the last few years be thinking
of offering more deals? The answer is simple, competition gets
worse every day.
The company didn't have a very good third quarter and Europe
made things worse. On the other hand, its McDeals discount scheme
in Germany helped maintain market share, while "Loose Change"
menus did the trick in Australia.
The "King" Is Getting a Face-Lift
And what could be worse than a resurgent
) that has decided to come down to the level of us commoners? The
company is doing away with its Monarch mascot and remodelling
activities should be more or less complete by the middle of next
Wooing women and senior citizens is also on the list
(statistics show we talk more and write more reviews). Burger
King's asset-light model is working perfectly and extra cash will
now reach investors in the form of a small dividend.
Wendy's Is Working on "A Cut Above"
The Wendy's Company
) wants to position its brand as "a cut above." But let's face
it. The menu is still stale and the company is trying to pacify
investors with a dividend increase and promise of share
repurchases. Margins lag the others' by a mile and the
remodelling effort appears behind schedule.
Choosing The Perfect Bite
Estimate changes for 2012 and 2013 are positive for BKW,
compared to negative for the other two. Additionally, the 2012
Earnings ESPs (Expected Surprise Prediction) for BKW, MCD and WEN
are 1.70%, 0.00% and -7.69%, respectively, indicating that the
Zacks Consensus Estimate for BKW could prove conservative, while
that for WEN overly optimistic and MCD neutral.
Therefore, BKW has the best chance of upside following fourth
quarter results. Its PEG of 1.4 is also attractive and beats both
MCD and WEN, which have PEGs of 1.7 and 2, respectively.
Therefore, BKW has a Zacks #2 Rank (Buy in the next 1-3
months), with both MCD and WEN carrying a Zacks #3 Rank
BURGER KING WWD (BKW): Free Stock Analysis
MCDONALDS CORP (MCD): Free Stock Analysis
WENDYS CO/THE (WEN): Free Stock Analysis
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