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8 Ways to Satisfy a Craving for Restaurant Stocks

By U.S. News & World Report

An appetite for profits.

Whether you order in, get it to go or simply peruse the menu, buying restaurant stock may represent the truest case of putting your money where your mouth is — or following your gut. Investment leader Warren Buffett bought Dairy Queen in 1997 for $585 million because he loved the ice cream (a cherry sundae, to be precise, with lots of nuts). It didn’t hurt that DQ made a nice match for his holdings in McDonald’s Corp. (NYSE: MCD), which have since risen 516 percent, making for the ideal all-you-can-eat Buffett buffet. Here are eight stocks from the restaurant and dining sector as they stand in summer 2017.

DineEquity (DIN)

You could say this chain, home to IHOP, is plagued by a barrel of bad apples, as in Applebee’s. Though aimed at a younger crowd, Applebee’s has suffered from the indifference of millennials who’d rather go urban hip than suburban slick. And so DineEquity is on the ropes — down by almost half since this time last year and trading at about $38 per share. Just last week, DIN announced it would close up to 135 Applebee’s restaurants.

Jack in the Box (JACK)

San Diego-based JACK has a hit in its Mexican Qdoba chain. “JACK needs to separate its older Jack in the Box concept from its newer, faster growing Qdoba,” says Scott Rothbort, a business professor at Seton Hall University and president and founder of LakeView Asset Management. New quarterly results showed earnings of $37.1 million, up 20-plus percent over last year. Next on JACK’s menu? “I envision a spinoff or issuance of a tracking stock, as was quite popular in the 1990s.”

Darden Restaurants (DRI)

Investor activism peaked in 2014 with the infamous Breadstickgate. In a 300-slide smackdown, Starboard Value CEO Jeffrey Smith blasted Darden for, among other things, giving out too many free breadsticks at its Olive Garden restaurants. Starboard threw the Darden board overboard, and the casual dining chain has since seen its stock soar 60 percent. Besides Olive Garden, the Orlando-based DRI also owns LongHorn Steakhouse, Bahama Breeze and five other dining concepts — none of which serve copious comp breadsticks.

Chipotle Mexican Grill (CMG)

Chipotle — a onetime hot pepper in the McDonald’s lineup — has been hit with an extra dose of sour cream. “Qdoba is the anti-Chipotle Mexican Grill,” says Rothbort, pointing to the perception among consumers that Qdoba now ranks a clear cut above in the quality department. And since May, returns have gone greasy spoon. Chipotle stock is down a third to $328 per share and suffering the steady kind of slide that gives investors sustained heartburn.

McDonald’s Corp. (MCD)

Following a McFunk, Ronald McDonald has strapped on his red size 21 shoes for a long, healthy run. British CEO Steve Easterbrook, who took over in 2015, has applied bulldog tenacity to a McDonald’s turnaround, putting premium items on a revitalized menu that still retains beloved Big Macs at its heart. In 2017, the golden arches have jumped 30 percent to $157 dollars per share. For investors who measure their Happy Meals in dollars, that means billions and billions served.

Starbucks Corp. (SBUX)

Today, up to 3 in 4 American Starbucks compete with — each other. Analyst Andrew Strelzik of BMO Harris Capital Markets downgraded SBUX recently because a glut of new stores apparently comes “at the expense of existing store traffic.” And while Starbucks’ coffee prices seem to always rise, it’s not so with SBUX stock, off 4 percent this past year. All that has Starbucks looking to China, where coffee is now a go-to brew among that nation’s upwardly mobile.

Shake Shack (SHAK)

It’s the burger joint equivalent of yanking meat off the grill too soon. Though it has only 130-plus locations, SHAK has been public since January 2015 and returns haven’t satisfied investor appetite. Since a giddy peak in May 2015, SHAK has since plunged to a dismal $32 per share. Given the eatery’s high prices (based on its retro-hipster diner concept), one share of SKAK is less expensive than two orders of burgers, shakes and fries.

Cracker Barrel Old Country Store (CBRL)

Tennessee-based Cracker Barrel is as southern as pecan pie — yet for shareholders, the tin is full of crumbs. CBRL has been flat for more than two years at $152 per share, after rocketing more than 1,200 percent the previous six-and-a-half years. The doldrums hinge on the chain’s dependence on retail gift shops that sell all manner of down-home tchotchkes. Slumping sales there have dragged down the performance of CBRL’s attached roadside restaurants.

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8 Ways to Satisfy a Craving for Restaurant Stocks originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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