Top Restaurant Stocks To Buy Right Now

Yum! Brands (YUM) has been facing difficulty in its top international market China from where it earned over 50% of its revenue in 2012. Post December 2012 the operator of KFC, Pizza Hut and Taco Bell started witnessing difficult times in China after the food regulatory agency ran a search over the antibiotic levels of the chicken that these quick service restaurant chains, including McDonald�� (MCD) and Burger King (BKW) use.

The comparable store sales have been declining since then. This is a big hit to the Westerners, particularly Yum! since its scale of operation in China is huge. It runs over 6,000 outlets in the emerging nation. Comparable sales faltered 10% in August, which was better than a 13% plunge in July.

KFC Continues to Struggle

KFC continues to be witnessing poor results with lesser customers due to the contaminated chicken issue. China�� growth rate has also decelerated post the recession in 2010 and this had an adverse effect on consumer spending thereby hampering restaurant sales growth. The bad publicity that got generated from December last year is still weighing on Yum!�� KFC sales.

Hot Logistics Companies To Buy Right Now: Noodles & Co (NDLS)

Noodles & Company, incorporated on December 19, 2002, is a casual restaurant concept offering lunch and dinner. The Company offers noodle and pasta dishes, staples of many cuisines, with the goal of delivering fresh ingredients and flavors globally under one roof from Pad Thai to Mac & Cheese. The Company�� globally inspired menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and sandwiches, which are served on china by its friendly team members.

As of May 28, 2013, including the 16 Company owned restaurants and one franchise restaurant opened in 2013. The Company opened 39 new company owned restaurants and six franchise restaurants. In 2012, the Company began using Your World Kitchen to describe the breadth of its offering and its customers' dining experience.

Advisors' Opinion:

• [By Daniel Sparks]

  Fool contributor Daniel Sparks doesn't think highly of Noodles & Company's (NASDAQ: NDLS  ) stock after its hyped IPO. In the video below he explains why Noodles is probably not the next Chipotle Mexican Grill (NYSE: CMG  ) , a fast-casual concept that has seen�mind-boggling�success since the company went public.

• [By Rick Munarriz]

  Noodles & Co. (NASDAQ: NDLS  ) more than doubled after going public on Friday, and the shares rose another 5% on Monday.

  As a fast-growing casual dining concept, investors are naturally going to compare the new carb-laden kid on the block to Chipotle Mexican Grill (NYSE: CMG  ) , but the comparisons may be premature.

• [By Rick Aristotle Munarriz]

  Justin Sullivan/Getty Images March hasn't been a good month for the quick-service industry. Sbarro -- the pizza and pasta chain that's a staple in many malls -- filed for Chapter 11 bankruptcy reorganization earlier this month. A few days later it was toasted-sandwich maker Quiznos following suit. This doesn't mean that you'll never have another slice of Sbarro's New York-style pizza or a French dip sub at Quiznos. Unlike Chapter 7 bankruptcy, where cash-strapped companies wind down their operations, Chapter 11 gives companies another chance to get it right after negotiating with creditors. It's not a good place to be -- and this is the second time Sbarro has gone this route in the past three years. However, things have to be pretty bad if you're willing to risk upsetting creditors and potentially hand over ownership in the pursuit of a cleaner balance sheet. Sbarro and Quiznos hope that a fiscal makeover will turn the tide. Sbarro will surrender ownership to lenders in a move that will replace 80 percent of its debt with equity. Quiznos filed a prepackaged restructuring plan that would shave $400 million of debt. Both chains will live on, but they may not be the same. Mauled at the Mall Sbarro has shut 180 company-owned locations with plans to shutter dozens more. There are now less than 800 units. Quiznos has 2,100 largely franchisee-owned locations, but we'll have to see how that holds up over time. Sbarro cited an "unprecedented decline in mall traffic" as a factor in its slide. As shoppers migrate online, there has been slower foot traffic at the suburban mall and hence to the food court. Quiznos relies on standalone locations and strip-mall outlets that haven't necessarily suffered from the thinning shopping mall crowds that have hurt Sbarro. However, Quiznos has been hit by everything from the larger Subway following it into toasted subs to folks scaling back on carbohydrates. It didn't seem as if this was a problem last year. Two of the hotte

Top Restaurant Stocks To Buy Right Now: Blue Water Global Group Inc (BLUU)

Blue Water Global Group, Inc. (Blue Water), incorporated on March 3, 2011, is a development-stage company. The Company focuses on developing a chain of casual dining restaurants in tourist destinations throughout the Caribbean region. The Company's initial restaurant is going to be called Blue Water Bar & Grill and will be located in St. Maarten, Dutch West Indies.

As of February 7, 2013, the Company did not operate any restaurant properties, and did not have any ownership or leaseholds in any restaurant properties. As of February 7, 2013, the Company did not have any ownership or leaseholds in any restaurant properties.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Naturalnano Inc (OTCMKTS: NNAN), Global Payout, Inc (OTCMKTS: GOHE) and Blue Water Global Group Inc (OTCBB: BLUU) were either jumping higher or diving lower yesterday. To complicate matters for investors, two of these small cap stocks have been subjects of disclosures about paid promotion or investor relation campaigns. So what will these three small caps do for the rest of this week? Here is a closer look to help you decide on a trading or investing strategy:

• [By Peter Graham]

  Last Friday, small cap Digital Brand Media & Marketing Group Inc (OTCMKTS: DBMM) surged 22.22% while Blue Water Global Group Inc (OTCBB: BLUU) sank 18.42% and Medina International Holdings, Inc (OTCMKTS: MIHI) sank 50%. However, one of these small caps (Blue Water Global Group) appears to be reversing course in early morning trading today. So with it and the rest of these small cap stocks either sink or swim in trading this week? Here is a closer look to help you decide on an investing or trading strategy:

Top Restaurant Stocks To Buy Right Now: Chanticleer Holdings Inc (HOTR)

Chanticleer Holdings, Inc., incorporated in 1999, is a business operator focused on expanding the Hooters casual dining restaurant brand in international markets. Chanticleer has rights to develop and operate Hooters restaurants in South Africa and has joint ventured with the current franchisee in Australia. The company also has franchise rights to develop Hungary and parts of Brazil while evaluating several additional opportunities internationally. During the year ended December 31, 2011, Chanticleer and a group of private equity investors acquired Hooters of America, Inc. (HOA). HOA is the franchisor and operator of over 450 Hooters restaurants in 44 states and 28 foreign countries. In October 2013, Chanticleer Holdings Inc purchased American Roadside Burgers, Inc. In December 12, 2013, Chanticleer Holdings Inc acquired a 51% interest in JF Restaurants LLC, an owner and operator of restaurants. In February 2014, it acquired Hooters' United States Pacific Northwest franchise rights and two existing restaurants in Oregon and Washington.

The Company operates in two business segments: Hooters franchise restaurants, and investment management and consulting services businesses. Hooters has also branched out to other areas, including licensing its name to a golf tour and the sale of packaged food in supermarkets. Its subsidiaries include Chanticleer Advisors, LLC, (Advisors), Avenel Ventures, LLC (Ventures), Avenel Financial Services, LLC (AFS), Chanticleer Holdings Limited (CHL), Chanticleer Holdings Australia Pty, Ltd. (CHA), Chanticleer Investment Partners, LLC (CIP), DineOut SA Ltd. (DineOut), Kiarabrite (Pty) Ltd (KPL), Dimaflo (Pty) Ltd (DFLO), Tundraspex (Pty) Ltd (TPL), Civisign (Pty) Ltd (CPL), Dimalogix (Pty) Ltd (DLOG) and Crown Restaurants Kft. (CRK).

South Africa

As of December 31, 2011, the Company had four Hooters locations in South Africa in Cape Town, Durban and Johannesburg (two locations), which are owned by four companies, which it control. The Com! pany formed a management company to operate the current South African Hooters locations. It owns 80% of the management company, with two members of local management owning the remaining 20%. The management company charges a management fee of 5% of net revenues to the Hooters locations in South Africa.

Other Countries

The Company has acquired development rights for Hooters in five states of Brazil, which would include Rio de Janeiro. It has applied to HOA for franchise rights in Hungary, where it own 80% of the entity the Company anticipate will hold the franchise rights and its local partner owns the remaining 20%. The Company has partnered with the Hooters franchisee in a joint venture in which it owns 49% and its partner 51%. The first Hooters restaurant under this joint venture (which would be the third Hooters restaurant open in Australia) opened in January 2012 in Campbelltown, a suburb of Sydney. It has a non-binding letter of intent with a franchisee to purchase 100% of an existing Hooters location.

Management and consulting services

The Company provides management and consulting services for small companies, which are seeking to become publicly traded. The Company also provides management and investment services for Investors LLC and Investors II, which are affiliates of the Company.

Advisors' Opinion:

• [By Konrad Kuhn]

  Chanticleer Holdings (HOTR), a franchisee of international Hooters restaurants, has exploded through its upside target prices; however, in our view, the stock has a long way to go, as it expands its restaurants abroad, and in the US.

• [By Chris Isidore]

  Restaurant chains are trying to hold the line on prices. Mark Allison, senior vice president of culinary operations at Chanticleer Holdings (HOTR), which operates the American Roadside Burger chain, said his chain raised prices about 12%, even though their beef costs are up even more than that.

Top Restaurant Stocks To Buy Right Now: Darden Restaurants Inc (DRI)

Darden Restaurants, Inc. (Darden), incorporated in March 1995, is a company owned and full-service restaurant company. As of May 27, 2012, the Company operated through subsidiaries 1,994 restaurants in the United States and Canada. In the United States, it operated 1,961 restaurants in all 50 states, including 677 Red Lobster, 786 Olive Garden, 386 LongHorn Steakhouse, 46 The Capital Grille, 30 Bahama Breeze, 23 Seasons 52, eight Eddie V's Prime Seafood and three Wildfish Seafood Grille restaurants, and two test synergy restaurants, which house both a Red Lobster and Olive Garden restaurant in the same building. In Canada, the Company operated 33 restaurants, including 27 Red Lobster and six Olive Garden restaurants. Through subsidiaries, it owns and operates all of its restaurants in the United States and Canada, except for three restaurants located in Central Florida that is owned by joint ventures it manages. On November 14, 2011, it acquired eight Eddie V's Prime Seafood restaurants and three Wildfish Seafood Grille restaurants.

As of May 27, 2012, the Company had 28 restaurants outside the United States and Canada operated by independent third parties pursuant to area development and franchise agreements, including five LongHorn Steakhouse restaurants in Puerto Rico, 22 Red Lobster restaurants in Japan, and one Red Lobster restaurant in Dubai. During fiscal year ended May 27, 2012, it opened 89 net new restaurants in the United States and Canada.

Red Lobster

Red Lobster is a full-service dining seafood specialty restaurant operator in the United States. It offers a menu featuring fresh fish, shrimp, crab, lobster, scallops and other seafood. The menu includes a variety of specialty seafood and non-seafood entrees, appetizers and desserts. Red Lobster maintains different lunch and dinner menus and different menus across its trade areas.

Olive Garden

Olive Garden is a full service dining Italian restaurant operator in the United Stat! es. Olive Garden�� menu includes a range of authentic Italian foods featuring fresh ingredients and a wine list that includes a selection of wines imported from Italy. The menu includes flatbreads and other appetizers, soups, salad and garlic bread sticks, baked pastas, sauted specialties with chicken, seafood and fresh vegetables, grilled meats, and a variety of desserts. Olive Garden also uses coffee imported from Italy for its espresso and cappuccino.

LongHorn Steakhouse

LongHorn Steakhouse restaurants are full-service establishments serving both lunch and dinner. With locations in 35 states, primarily in the Eastern half of the United States, LongHorn Steakhouse restaurants feature a range of menu items, including signature fresh steaks, as well as salmon, shrimp, chicken, ribs, pork chops, burgers and prime rib.

The Capital Grille

The Capital Grille has locations in metropolitan cities in the United States. The Capital Grille offers seafood flown in daily and culinary specials created by its chefs. The restaurants feature a wine list offering over 350 selections, personalized service, and private dining rooms.

Bahama Breeze

Bahama Breeze restaurants bring guests the feeling of a Caribbean escape, offering the food, drinks and atmosphere found in the islands. The menu features Caribbean-inspired seafood, chicken and steaks, as well as signature specialty drinks. During fiscal 2012, it opened four Bahama Breeze restaurant.

Seasons 52

Seasons 52 is a grill and wine bar with seasonally inspired menus offering ingredients to meals that are lower in calories than comparable restaurant meals. It offers a wine list of more than 90 wines with approximately 60 available by the glass. As of May 27, 2012, there were 23 Seasons 52 restaurants in the United States.

Synergy restaurant

Synergy restaurant houses both a Red Lobster and Olive Garden restaurant in the same building, but ! with sepa! rate front doors, dining rooms and brand-specific menus. It opened a second synergy test location during fiscal 2012.

Advisors' Opinion:

• [By DAILYFINANCE]

  Alan Diaz/AP NEW YORK -- The struggling parent company of Olive Garden and Red Lobster reported a sharply lower quarterly profit Friday and said that its president and chief operating officer will retire. Darden Restaurants (DRI) said Drew Madsen, 57, will be succeeded by the president of its specialty restaurant group, Gene Lee. The appointment is effective immediately. The company's specialty restaurant group, which includes chains such as The Capital Grille and Bahama Breeze, has performed better than the company's flagship chains. At Olive Garden, the company's biggest chain, sales fell 4 percent at restaurants open at least a year in the latest quarter. The figure fell 5.2 percent at Red Lobster. The declines came despite the company's ongoing efforts to revitalize menus and advertising to better reflect changing eating habits. In the specialty restaurant group, sales edged up 0.5 percent at restaurants open at least a year. The metric is a key gauge because it strips out the impact of newly opened and closed locations. To cut spending by about $50 million a year, the company is also reducing its workforce by between 80 to 85 positions, as well as making program cuts. A representative said the personnel cuts won't be at the restaurant level. For the three months ended Aug. 25, the company said it earned $70.2 million, or 53 cents a share. That's compared with $110.8 million, or 85 cents a share, in the year-ago period. Analysts expected a profit of 70 cents a share. Sales rose to $2.16 billion, helped by the opening of new locations. That was short of the $2.19 billion Wall Street expected, according to FactSet. Darden, based in Orlando, Fla., said Madsen will work with Lee and Darden's other executives on the transition until he retires. Madsen joined the company in 1998 as executive vice president of marketing for Olive Garden. He became COO in December 2004. Lee joined Darden in 2007. Kim Lopdrup will take over leadership of the company's speci

• [By Monica Gerson]

  Wall Street expects Darden Restaurants (NYSE: DRI) to report its Q4 earnings at $0.94 per share on revenue of $2.33 billion. Darden shares fell 0.24% to $49.40 in after-hours trading.

• [By John Maxfield]

  Rich Duprey's article "Will Obamacare Carve up the Restaurant Industry?" builds on these concerns. Rich cites statements from CEOs of multiple restaurant chains about the possibility that worker hours will be cut to avoid the added premiums. The head of Papa John's (NASDAQ: PZZA  ) said that it's "common sense" to do so, and Darden Restaurants (NYSE: DRI  ) , the parent company of Olive Garden and Red Lobster, experimented with a plan to hire more part-time workers last year before abandoning it in the face of a customer backlash.

• [By Paul R. La Monica]

  That's because the company that owns Olive Garden, Darden Restaurants (DRI), has some never ending problems with sluggish sales and earnings. One prominent Darden investor is so fed up it's demanding changes to make the Italian-themed food better.