5 Restaurants Worth a Bite — and a Buy-in

A number of familiar sit-down eateries with portfolio potential

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5 Restaurants Worth a Bite — and a Buy-in

DineEquity

DineEquity185 5 Restaurants Worth a Bite    and a Buy inDineEquity (NYSE:DIN) is focused on two well-known names among the eating-out masses: International House of Pancakes (IHOP) and Applebee’s.

DIN is run on the franchise model — presently, 99% of the 1,842 IHOP restaurants are franchised, as are 75% of Applebee’s 1,535 locations, though DIN is working toward a 100% figure in both by slowly selling off company-owned locations.

DIN takes in $1 billion in revenues and earned $73 million last year. A surprising 48% return on equity is the star number for DIN, as the company actually is fairly heavy in debt, with approximately $300 million of the $1.4 billion coming from financing operations used in the franchise model.

DIN does not provide a dividend, but a share repurchase program put in place by management last year should help future share appreciation, so mull over DineEquity while drenching your short stack in syrup.


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/5-restaurants-worth-a-bite-and-a-buy-in-rt-dri-din-cbrl-bwld/.

©2014 InvestorPlace Media, LLC

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