Top 5 Restaurant Stocks To Buy For 2016

Top 5 Restaurant Stocks To Buy For 2016: Burger King Worldwide Inc (BKW)

Burger King Worldwide, Inc., incorporated on April 2, 2012, is a fast food hamburger restaurant, under the Burger King brand. The Company generates revenues from three sources: franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and fees paid by franchisees; property income from properties that it leases or subleases to franchisees, and retail sales at Company restaurants. In September 2012, it sold 41 Company-owned BURGER KING restaurants in Singapore to Rancak Selera Sdn Bhd. As of December 31, 2012, it owned or franchised a total of 12,997 restaurants in 86 countries and United States territories. In April 2013, it announced the sale of Burger King Restaurants of Canada (BKRC), including 94 Company owned BURGER KING restaurants in the Canada market to Redberry Investments Corp.

The Company operates in the FFHR category of the quick service restaurant (QSR), segment of the restaurant industry . In the United States, the QSR segment is the segment of the restaurant industry and has demonstrated steady growth over a long period of time. The Company launched four new menu platforms (salads, wraps, smoothies and desserts) and expanded its chicken, coffee and ancillary menu platforms. It has established a data driven marketing process, which is focused on driving restaurant sales and traffic, while targeting a broader consumer base with more inclusive messaging to reach women, parties with children and seniors.

United States and Canada (U.S. and Canada)

As of December 31, 2012, the Company had 7,293 franchise restaurants and 183 Company restaurants in the U.S. and Canada. During the year ended December 31, 2012, the Company refranchised 752 restaurants in the U.S. and Canada, bringing the region to 98% franchised. During the year ! ended December 31, 2012, it also continued to implement its Four Pillars strategy to improve comparable sales gro wth and franchise profitability by enhancing its Menu, Marke! ting Communications, Image, and Operations.

Europe, the Middle East and Africa (EMEA)

As of December 31, 2012, the Company had 2,989 franchise restaurants and 132 Company restaurants in EMEA. While in Germany continues with 684 restaurants as of December 31, 2012, Turkey and Russia are two of its growing markets with net openings of 78 restaurants and 47 restaurants, respectively, during the year ended December 31, 2012.

Latin America and the Caribbean (LAC)

As of December 31, 2012, the Company had 1,290 franchise and 100 Company restaurants in LAC. In 2011, the Company entered into a joint venture agreement with Vinci Partners for Brazil and granted franchise and development rights to the joint venture. The Company received a minority stake and board seats in the joint venture without deploying its own capital.

Asia Pacific (APAC)

As of December 31, 2012, the Company had 1,007 franchise and 3 C ompany restaurants in APAC. As of December 31, 2012,the Company had 357 restaurants in Australia. It contributed 44 Company restaurants in China. In September 2012, the Company sold 38restaurants to Rancak Selera, the Burger King franchisee in Malaysia.

The Company competes with McDonald's Corporation, Wendy's Company, Carl's Jr., Jack in the Box and Sonic.

Advisors' Opinion:

• [By Jonas Elmerraji]

  2014 has been a blockbuster year for shares of Burger King Worldwide (BKW) -- shares of the $11.3 billion fast food chain have rallied more than 43% since January. And as shares hit new highs this fall, short sellers are betting on a drop. Right now, Burger King's short interest ratio weighs in at 10.88.

  Burger King owns or franchises approximately 13,670 restaurants spread across 86 countries. And while! that pos! itioning makes Burger King considerably smaller than its biggest fast food peers, the firm's scale is set to increase significantly with the acquisition of Canada-based quick service restaurant chain Tim Hortons (THI). The combined firm will boast a network of more than 18,000 total locations, most of them in North America.

  Not surprisingly, most of the short interest in BKW is due to the pending Tim Hortons acquisition. Just like with Sysco, it doesn't matter what's driving BKW's short interest into the double-digits -- it only matters that shorting this stock is a crowded bet. And with markets pricing in a 92% probability that the deal will close without a hitch, those big short bets are going to need to be unwound in short order. That could create a short squeeze opportunity in the coming quarter.

  Must Read: 10 Stocks Carl Icahn Loves in 2014

• [By Ben Levisohn]

  Shares of McDonald’s have gained 0.4% to $92.36 at 2:43 p.m. today, while Wendy’s (WEN) has risen 0.6% to $8.06 and Burger King (BKW) has dropped 1.2% to $31.72.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-restaurant-stocks-to-buy-for-2016.html