Any Foodmaker fans out there? This has been a 100% gainer in just a little over a year, and is the only non-tech issue I own. I got in at $5 last year, and FM recently broke through to $10. This is the San Diego-based fast food chain that was hit by a food-poisoning outbreak a few years ago. (The source was actually beef from Vons, a grocery store chain in the west, and one of their hamburger meat suppliers at the time) FM's stock tanked all the way to around $3 or so until the legal settlements were finalized and paid off. That's all behind the company now, which has seen its revenues recover and is now growing faster than others in the fast-food industry.
Foodmaker is expanding its number of stores both nationally and internationally. However, same-store sales (unlike those which are growing chiefly due to new restaurant expansion) have grown between 5% and 6% in the past 2 quarters. The last quarter's earnings have doubled over the previous quarter. FM is currently trading at a PE of 20. Their "Jack is Back" advertising campaign is cute and original and obviously working. My initial research led me to believe that this would be a $15 stock in 18 months or so. So far so good!
D. Kuspa |
