1-Star Stocks Poised to Plunge: Burger King?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fast-food restaurant operator Burger King Worldwide (NYS: BKW) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Burger King's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Miami (2010)|
|Market Cap||$5.4 billion|
|Trailing-12-Month Revenue||$2.4 billion|
|Management||CEO Bernardo Hess (since 2010)|
Executive Vice President Jose Cil (since 2010)
|Trailing-12-Month Operating Margin||19.5%|
|Cash/Debt||$435.3 million / $3.1 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 33% of the 24 members who have rated Burger King believe the stock will underperform the S&P 500 going forward.
As a former resident in Japan and current resident in China, I can say that people of these two countries are extremely brand loyal. ... Don't expect them to jump ship from McDonald's to [Burger King] just because there's a new restaurant on the block. Foreigners eat at McDonald's because they want a slice of American culture. Burger King doesn't have nearly enough status and worldwide recognition to be a "brand name". ... When it comes to hamburgers and foreign countries, [McDonald's] will always be #1. Yum Brands (actually quite a bit stronger than MCD in China) will be the top dog with chicken and pizza. ...
If China's growth is stalling, [Burger King] couldn't have picked a worse time to build 1000 more restaurants. No thanks.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.
The article 1-Star Stocks Poised to Plunge: Burger King? originally appeared on Fool.com.Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of McDonald's. Motley Fool newsletter services have recommended buying shares of McDonald's. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.