Along with the franchise model, DineEquity Inc (NYSE:DIN) management has also embraced a more shareholder-friendly culture. DineEquity reinstituted its dividend program this year for the first time since 2008, and at its current price yields 4.4%
Sit down for a heaping plate of impressive returns
Consumer spending remains resilient so far in 2013, meaning sit-down restaurants such as Brinker International, Inc. (NYSE:EAT), Darden Restaurants, Inc. (NYSE:DRI), and DineEquity Inc (NYSE:DIN) stand to reap considerable rewards.
Not only are these stocks rewarding their investors with sales and profit growth, they’re not stingy about sharing their success with shareholders. DineEquity and Darden Restaurants, Inc. (NYSE:DRI) offer dividend yields greater than 4%, and while Brinker’s payout stands at 2.3%, it’s growing its dividend at a very high rate.
Furthermore, these stocks are trading at attractive valuations. DineEquity and Darden exchange hands for just 11 times trailing earnings, particularly compelling because the S&P 500 Index trades for an earnings multiple in the high teens.
No matter whether you’re a growth investor, an income investor, or someone in between, there’s a sit-down restaurant stock to suit your preferences.
The article These Casual Restaurants Offer a Delicious Opportunity originally appeared on Fool.com and is written by Robert Ciura.
Robert Ciura has no position in any stocks mentioned. The Motley Fool owns shares of Darden Restaurants.
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