Flick through three US restaurant stocks in February - Kalkine Media

February 07, 2023 04:00 AM PST | By Mridul Gogoi
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Highlights:

  • Nathan's Famous Inc has a three-year dividend growth of 6.39.
  • Rave Restaurant reported US$ 0.3 million in net income in Q1FY2023.
  • Dutch Bros Inc's revenue in Q3 2022 was US$ 198.64 million.

The restaurant sector is also a very important in the US stock market. The restaurant sector suffered losses during the pandemic and later due to the global economic slowdown and inflation. However, tech-enabled changes in the food delivery ecosystem have helped the industry to salvage and address some of the challenges.

The slew of discounts and deals offered by the companies have helped them keep going during a crisis. The year 2022 was daunting for every sector, including restaurant companies.

Here, we look at three US restaurant stocks and how they have performed in recent quarters:

Nathan's Famous Inc. (NASDAQ: NATH)

Nathan's Famous Inc is a US fast food franchise that involves Branded Product Program, Product licensing, Restaurant operations, etc. The company has a dividend yield of 2.533 per cent. It paid a quarterly dividend of 0.45 per share and has a three-year dividend growth of 6.39.

The company’s Q2 2022 revenue was US$ 37.49 million compared to US$ 32.87 million in the same quarter in 2021. The income from operations in Q2 2022 was US$ 9.91 million versus US$ 7.43 million in Q2 2021.

Nathan’s adjusted EBITDA (non-GAAP) in the reported quarter of 2022 was US$ 10.32 million, whereas it was US$ 7.77 million in the corresponding period a year ago.

Its net income in Q2 2022 came to US$ 5.95 million compared to US$ 3.54 million in the year-ago quarter. 

Nathan's Famous Inc Q2 revenue and net incomeSource: ©2023 Krish Capital Pty. Ltd; © Canva Creative Studio via Canva.com

Rave Restaurant Group Inc. (NASDAQ: RAVE)

Rave Restaurant runs and franchises delivery, carry-out, pizza buffet, and express restaurants under Pie Five Pizza Company and Pizza Inn. The restaurant company has an EPS of 0.45 and a P/E ratio of 3.70.

In the first quarter of FY 2023, Rave Restaurant posted a net income of US$ 0.3 million which remained the same compared to the year-ago quarter.

Rave’s adjusted EBITDA in Q1 2023 grew by US$ 0.1 million to US$ 0.5 million compared to the same period in Q1 2022.

Its revenue rose by US$ 0.5 million in Q1FY2023 to US$ 3 million versus the same period a year earlier. The company said it repurchased shares of its common stock worth US$ 1.4 million in Q1 2023.

The total current assets of Rave Restaurant at the end of the first quarter of 2023 was US$ 9.21 million compared to US$ 10.05 million in the corresponding quarter in 2021. 

Dutch Bros Inc. (NYSE: BROS)

Dutch Bros Inc is a US operator that franchises drive-thru coffee shops that mainly serve hand-crafted beverages. The restaurant chain has a P/B ratio of 17.032. Dutch Bros’s revenue in Q3 2022 was US$ 198.64 million versus US$ 129.80 million in the same quarter in 2021.

The net income of Dutch Bros in Q3 2022 was US$ 1.6 million compared to a net loss of US$ 116.8 million in the same period of FY2021. In the third quarter of 2022, Dutch Bros opened 38 new outlets, which is a record for the company. It has a target of opening 150 new shops in FY2023.

The adjusted EBITDA of Dutch Bros in Q3 2022 soared 32.8 per cent to US$ 27.8 million against US$ 21 million in the year-ago quarter. 

Bottom line

As an investor, tide over the current bearish phase in the market by diversifying your portfolio and adopting a long-term strategy. Do a thorough analysis before putting your bets on any stock to avoid losing your investment.


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