Investors want to keep an eye on activist Scout Capital Management. They now own 1.1 million shares or 5.7% of the company. Billionaire Michael Dell is also invested in DineEquity Inc (NYSE:DIN) with 2.3 million shares, a 12.1% stake.
Make sausage with Bob Evans Farms Inc (NASDAQ:BOBE)
Bob Evans Farms Inc (NASDAQ:BOBE) owns and operates 560 Bob Evans Restaurants in 19 states. The company also makes breakfast sausage under the Bob Evans and Owens brands.
In the first quarter Bob Evans Farms Inc (NASDAQ:BOBE)s agreed to sell its Mimi’s Cafe business for $50 million. With this sale, the company will focus on remodeling its Bob Evans Restaurants. By doing so, the company hopes to grow earnings per share 8% to 12% annually.
The focus at Bob Evans Farms continues to be its “Farm Fresh Refresh” remodel program. The company still has 233 stores that need to be remodeled. According to the company, same-store sales at restaurants that have had the remodel are outperforming stores that haven’t undergone the remodel.
Bob Evans Farms Inc (NASDAQ:BOBE) continues to be a very shareholder-friendly company in terms of dividends and share repurchases. Last year, the company paid out $93 million to shareholders via dividends and share buybacks. The current annual dividend is $1.10 per share for a yield of 2.4%.
In the first quarter of this year the company reported earnings of 27 million, or $0.97 per share. In the fourth quarter, the company only earned $22 million, or $0.76 per share. For the rest of the year, the company is anticipating revenues of $1.4 billion. Analysts had only been forecasting $1.37 billion. This is a bullish sign that the rest of the year looks strong for Bob Evans Farms Inc (NASDAQ:BOBE).
Denny’s Corporation (NASDAQ:DENN) celebrates America’s love for bacon
Denny’s describes itself as a full-service pancake house/coffee shop/fast casual family restaurant chain. Most of its restaurants are franchised. There are over 1,600 restaurants under the Denny’s brand. The restaurant is known for always being open and never closing. Denny’s is also known for its varieties of bacon for breakfast and its Baconalia menu.
Denny’s is trying to adapt to healthier eating habits by offering a get fit program. Instead of Denny’s Grand Slam, they’re offering a Fit Slam. The Fit Slam has less than 550 calories and is a healthier alternative to the regular menu. Denny’s is hoping healthier fare will give it a boost like it did for Subway.
In the first quarter of this year, Denny’s beat earnings estimates. The company earned $0.08 per share versus estimates of $0.07 and $0.06 in the prior year. Denny’s reported revenues of $114.49 million compared to expectations of $112.71 million. The company’s gross margin over the past 12 months is 37.7%. The operating margin comes in at 12.1% and net margin at 4.9%.
Foolish assessment
I think all four stocks represent great plays on America’s love for breakfast. Each company is well-run and have great brand recognition and a loyal customer-base. As these companies continue to remodel and improve menu items, they’ll continue to reward shareholders in the long-run.
Mark Yagalla has no position in any stocks mentioned. The Motley Fool recommends Cracker Barrel Old Country Store.
The article Don’t Skip Breakfast With These Stocks originally appeared on Fool.com.
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