Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

News Flash: People Want Better Food, Market Nods – Panera Bread Co (PNRA) and More

Page 1 of 2

The Hudson Institute recently found that between 2006 and 2011, 10 million fewer servings of french fries were served at top restaurant chains. Maybe those sobering food documentaries finally made a dent. That being said, McDonald’s Corporation (NYSE:MCD) is (understandably) in an uncomfortable position, playing by a changing set of rules.

The fried potato vendor has just reported its first decline in same store sales in nine years–add that to a 4.6% decline in stock over the last year, and you have some faithful McDonald’s investors scratching their heads, wondering if this is a minor glitch in the fast-food machine or a sign of the times.

Panera Bread Co (NASDAQ:PNRA)Susquehanna, the global investment firm (and the daily double answer for tonight), made news last Monday by putting some faith in those fries and McNuggets. They’ve raised their price target for the company from $98 to $109 per share, a speculated 13% increase from where it is now, around $93. Meanwhile, is not as generous; it gave the stock a DARS rating of 3.4 out of 5 stars, saying that the stock is not recommended.

Analysts are touting the rise of the fast-casual dining experience as one the culprits for Ronald the Clown’s latest McWoes, and the market appears to concur. Chipotle Mexican Grill, Inc. (NYSE:CMG), the maker of semi-organic $7 burritos, saw an increase in same store sales, with fourth quarter profits rising 6.8% to the height of $61.4 million. Yet for some investors, the news wasn’t good enough to put to rest the idea that the stock was overvalued and its P/E was unfavorable. Then Peter Lynch spoke up.

Last week Peter Lynch gave the stock an 87% favorable rating per Nasdaq Guru Analysis, pointing to the upside of it’s P/E.  Investors should examine the P/E (36.34) relative to the growth rate (33.81%) based on the average of the 3, 4 and 5 year historical EPS growth rates for a company.  This is a quick way of determining the fairness of the price. In this particular case, the P/E/G ratio for the CMG (1.07) is considered “O.K.”

Also to the benefit of Chipotle lovers is the company’s planned aggressive action. According to the Dow Jones Newswire, Chipotle is increasing it’s advertising and catering efforts, and CFO Jack Hartung foresees a possible raise in menu prices as early as mid-2013.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!