A newly released survey took a deep dive look into recent trends affecting fast food, including the effectiveness of advertising on new menu item sales, trends in value menus, and how health influences fast food visitation. Today we'll focus on the impact of ad spending on new menu item sales. I'll address value menu trends and the role of health in consumers' dining choices in future articles.
Survey says ...
Placed evaluated the likelihood of a consumer to buy a fast-food menu item within 30 days of seeing or hearing an advertisement for a new menu offering. Consumers who bought the advertised offering were considered "early menu adopters." Advertising was found to be most effective with early adopters for the following companies.
Yum! Brands (NYSE: YUM )
Source: Wikimedia Commons.
Yum! Brands' advertising appears very effective, with all three of its fast-food restaurants (KFC, Taco Bell, and Pizza Hut) topping the list. In particular, Taco Bell �has drawn customers in droves, selling a half-billion Doritos Locos Tacos since their March 2012 launch. Amazingly, 53% of Taco Bell visitors in April reported purchasing the newly launched Cool Ranch-flavored Doritos Locos Taco. Yum! hopes new menu item sales like these will help the company meet its lofty goal of doubling Taco Bell's domestic annual sales by 2021.
Best Paper Companies To Buy For 2015: Coldwater Creek Inc. (CWTR)
Coldwater Creek Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of women's apparel, accessories, jewelry, and gift items primarily in the United States. It operates premium retail stores located in traditional malls, lifestyle centers, and street locations; merchandise outlet stores; and day spas, which offer spa treatments, including massages, facials, body treatments, manicures, and pedicures, as well as provide relevant apparel and personal care products. The company also offers its products through its e-commerce Web site coldwatercreek.com and catalogs, as well as through phone and mail. As of October 27, 2012, it operated 354 premium retail stores and 38 factory outlet stores, as well as 9 spas. The company was founded in 1984 and is headquartered in Sandpoint, Idaho.
Advisors' Opinion:- [By Eric Volkman]
In turn, it bumps QLogic (NASDAQ: QLGC ) from that index to the S&P SmallCap 600. Finally, QLogic's shift completely displaces Coldwater Creek (NASDAQ: CWTR ) , which will no longer be on the S&P SmallCap 600.
- [By Roberto Pedone]
Another earnings short-squeeze prospect is specialty retailer of women's apparel, accessories, jewelry and gift items Coldwater Creek (CWTR), which is set to release numbers Tuesday after the market close. Wall Street analysts, on average, expect Coldwater Creek to report revenue of $162.81 million on a loss of 63 cents per share.
The current short interest as a percentage of the float for Coldwater Creek is very high at 18.8%. That means that out of the 12.17 million shares in the tradable float, 3.47 million shares are sold short by the bears. This is a big short interest on a stock with a very low tradable float. If the bulls get the earnings news they're looking for, then this stock could easily explode higher post-earnings.
From a technical perspective, CWTR is currently trending just below its 50-day moving average and well below its 200-day moving average, which is bearish. This stock has been trending sideways for the last two months, with shares moving between $2.16 on the downside and $2.80 on the upside. A high-volume move above the upper-end of its recent range could trigger a breakout trade for CWTR post-earnings.
If you're bullish on CWTR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $2.51 to $2.69 a share and then once it takes out more resistance at $2.80 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 192,994 shares. If that breakout hits, then CWTR will set up to re-fill some of its previous gap down zone from June that started near $3.60 a share.
I would simply avoid CWTR or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $2.35 to its 52-week low at $2.16 a share with high volume. If we get that move, then CWTR will set up to enter new 52-wee
- [By Lauren Pollock]
Coldwater Creek Inc.'s(CWTR) fiscal third-quarter loss widened as the women’s apparel retailer reported a sharp drop in same-store sales and ebbing gross margins. Results missed expectations.
Hot Consumer Companies To Invest In Right Now: Stevia First Corp (STVF)
Stevia First Corp. , formerly Legend Mining Inc., incorporated on June 29, 2007, is a development-stage company. It is an agricultural biotechnology company. The Company is engaged in the cultivation and harvest of stevia leaf and the development of stevia products. As of March 31, 2012, the Company had not generated any revenues.
The Company focuses on the process of stevia production from plant breeding through propagation, planting, cultivation, and harvesting, and developing, marketing, and selling stevia products. It also focuses on developing operations that will include stevia tissue culture, laboratory propagation, farming, and cultivation of stevia leaf. Stevia, is a plant from the chrysanthemum family. Stevia is a sweetener in its raw, unprocessed form. The small green plant�� leaves have a taste that can be 30 times sweeter than sugar.
The Company competes with Cargill, Incorporated, PureCircle, Blue California, Corn Products International, GLG Life Tech Corp., McNeil Nutritionals, LLC, Sunwin USA, L.L.C., Sweet Green Fields L.L.C., Whole Earth Sweetener Co. L.L.C., Wisdom Natural Brands and &W Seed Company.
Advisors' Opinion:- [By Glenwoods]
Cargill and Evolva are not the only companies developing stevia via a fermentation-based process. Stevia First Corp. (OTCMKTS:STVF), an early-stage agribusiness based in California's Central Valley, with its sights on being the first vertically integrated stevia company, has been developing its own stevia microbial fermentation-based process (through a license by Vineland Research and Innovation Centre of Canada).� Recently the company announced its "Beyond Reb A" research program, aimed at producing not only Reb A, but also Reb D and Reb X, two glycosides found in small amounts in the stevia leaves that have been identified as the next-generation of stevia sweeteners.� �
Hot Consumer Companies To Invest In Right Now: Joe's Jeans Inc.(JOEZ)
Joe?s Jeans Inc. designs, produces, and sells apparel and apparel-related products worldwide. Its product line comprises women?s and men?s denim jeans, pants, shirts, sweaters, jackets, and other apparel products under the Joe?s brand. The company also offers women?s handbags and clutches, shoes, belts, and leather goods under various license agreements. In addition, it provides children?s products consisting of denim bottoms, tops, T-shirts, and jackets for infants, toddlers, girls, and boys. The company sells its products to various retailers, including department stores, specialty stores, and distributors, as well as through its retail stores; and through the Internet site, joesjeans.com/shop. As of November 30, 2011, it operated 17 outlet stores and 5 full price retail stores. The company was formerly known as Innovo Group Inc. and changed its name to Joe?s Jeans Inc. in October 2007. Joe?s Jeans Inc. was founded in 1987 and is based in Commerce, California.
Advisors' Opinion:- [By Rick Munarriz]
Shares of Joe's Jeans (NASDAQ: JOEZ ) were slammed today after posting disappointing quarterly results.
The retailer of high-priced denim clocked in with roughly half of the revenue growth that Wall Street was targeting. Declining profitability also missed the mark.
- [By Wallace Witkowski]
Joe�� Jeans Inc. (JOEZ) �shares surged 12% to $1.15 on moderate volume after the apparel maker posted a second-quarter profit when analysts were expecting a loss. The company reported earnings of 1 cent a share on revenue of $48.2 million. Analysts estimated a loss of 3 cents a share on revenue of $49 million.
- [By Eric Volkman]
Joe's Jeans (NASDAQ: JOEZ ) results for its Q1 have been released. For the quarter, net sales came in at $29.4 million, a 13% increase from the nearly $26 million in the same period the previous year. On the bottom line, however, the company swung to a loss of $6.4 million ($0.10 per diluted share) from Q1 2012's profit of roughly $794,000 ($0.01).
Hot Consumer Companies To Invest In Right Now: First Cash Financial Services Inc (FCFS)
First Cash Financial Services, Inc., incorporated on April 24, 1994, is an operator of retail-based pawn and consumer finance stores in the United States and Mexico. As of February 18, 2013 , the Company had approximately 829 locations twelve states in United States and 24 states in Mexico. The Company's primary business is the operation of pawn stores, which engage in retail sales, purchasing of secondhand goods and consumer finance activities. The pawn stores generate retail sales from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers. Pawn stores are also a convenient source for small consumer loans to help customers meet their short-term cash needs. Personal property, such as jewelry, consumer electronics, tools, sporting goods and musical instruments are pledged as collateral for the loans. In addition, some of the Company's pawn stores offer consumer loans or credit services products.
In March 2012, the Company acquired three Dallas-area pawn stores. In June 2012, the Company acquired 24 pawn stores located in the states of Colorado (13), Kentucky (seven), Wyoming (three) and Nebraska (one). In June 2013, First Cash Financial Services Inc announced the acquisition of 19 format U.S. pawn stores located in Texas.
Pawn Merchandise Sales
The Company's pawn merchandise sales are primarily retail sales to the general public from its pawn stores. The items retailed are primarily used consumer electronics, jewelry, household appliances, tools, musical instruments, and sporting goods. The Company also melts down certain quantities of scrap jewelry and sells the gold, silver and diamonds in commodity markets.
The Company acquires pawn merchandise inventory primarily through forfeited pawn collateral and, to a lesser extent, through purchases of used goods directly from the general public. Merchandise acquired by the Company through forfeited pawn collateral is carried in inventory at the amount of the ! related pawn loan, exclusive of any accrued service fees. The Company does not provide financing to customers for the purchase of its merchandise, but does permit its customers to purchase merchandise on an interest-free layaway plan. Should the customer fail to make a required payment, the item is returned to inventory and previous payments are forfeited to the Company. Interim payments from customers on layaway sales are credited to deferred revenue and subsequently recorded as income in which final payment is received or when previous payments are forfeited to the Company.
Pawn Lending Activities
The Company's pawn stores make small loans to their customers in order to help them meet short-term cash needs. All pawn loans are collateralized by personal property such as jewelry, electronic equipment, household appliances, tools, sporting goods and musical instruments. Pawn loans are non-recourse loans and the pledged goods provide the only security to the Company for the repayment of the loan. At the time a pawn transaction is entered into, an agreement, commonly referred to as a pawn ticket, is delivered to the borrower for signature that sets forth, among other items, the name and address of the pawnshop, borrower's name, borrower's identification number from his/her driver's license or other identification, date, identification and description of the pledged goods, including applicable serial numbers, amount financed, pawn service fee, maturity date, total amount that must be paid to redeem the pledged goods on the maturity date, and the annual percentage rate. Pledged property is held through the term of the loan, unless the pawn is paid earlier or renewed. The typical loan term is generally one month plus an additional grace period (typically 30 to 90 days). The Company contracts for pawn loan fees and service charges as compensation for the use of the funds loaned and to cover direct operating expenses related to the transaction and holding the pledged property. These pa! wn loan f! ees and service charges accounted for approximately 26% of the Company's revenue from continuing operations during the year ended December 31, 2012 .
Credit Services and Consumer Loan Activities
The Company has significantly reduced its U.S.-based consumer loan activities, primarily from payday lending, over the past several years. In September 2012, the Company closed seven of its consumer loan stores located in the Texas cities of Austin and Dallas. The Company offers a fee-based credit services organization program (CSO Program) to assist consumers, in Texas markets, in obtaining extensions of credit. The Company's consumer loan and pawn stores in Texas offer the CSO Program, and, in Texas, credit services are also offered via an Internet platform. Under the CSO Program, the Company assists customers in applying for a short-term extension of credit from an independent, non-bank, consumer lending company (the Independent Lender) and issues the Independent Lender a letter of credit to guarantee the repayment of the extension of credit.
The Company subsequently collects a percentage of these bad debts by redepositing the customers' checks, ACH collections or subsequent cash repayments by the customers. The profitability of the Company's credit services operations is dependent upon adequate collection of these returned items. The Company also offers an automobile title lending product under the CSO Program. These credit services fees accounted for approximately 8% of the Company's revenue from continuing operations during 2012 . In Mexico, the Company also offers an installment loan product with a term of 365 days and bears weekly service fees of 7% on the loan amount. These consumer loan fees accounted for less than 1% of the Company's revenue from continuing operations during 2012 .
Advisors' Opinion:- [By Brian Pacampara]
What: Shares of First Cash Financial Services (NASDAQ: FCFS ) plunged as low as 14% today after the consumer finance company cut its short-term guidance outlook.
- [By Eric Volkman]
First Cash Financial Services (NASDAQ: FCFS ) is becoming a pawn star. The company announced it has acquired a set of 19 large-format pawn shops in Texas, most of which operate under the Valu + Pawn brand name. The price was around $70 million in cash, funded for the most part under the company's revolving credit facility.
- [By Victor Selva]
We can appreciate that Capital One麓s ROE is lower than that of American Express, Discover Financial Services, First Cash Financial Services (FCFS) and Nelnet Inc. (NNI).
Hot Consumer Companies To Invest In Right Now: Commercial Vehicle Group Inc. (CVGI)
Commercial Vehicle Group, Inc., together with its subsidiaries, engages in supplying various cab related products and systems for the commercial vehicle markets in the United States, the United Kingdom, and other countries. The company provides seats and seating systems, including heavy truck seats, construction and other commercial vehicle seats, and office seating products. It also offers electronic wire harness assemblies that function as current carrying devices used to provide electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on a commercial vehicle; and panel assemblies and cabinets. In addition, the company offers trim systems and components for the interior cabs of commercial vehicles comprising A-pillars, B-pillars, door panels, and interior trim panels; instrument panels; body panels; storage systems; floor covering systems; sleeper bunks; gr ab handles and armrests; privacy curtains; and plastics decorating and finishing products. Further, it provides cab structures, sleeper boxes, bumper fascias and fender liners, and structural components; mirrors and related hardware products; windshield wiper systems and components; and controls and control systems for window lifts, door locks, and electric switch products. The company offers its products for original equipment manufacturers for various end market vehicle applications, such as local and long-haul commercial trucking, bus, construction, mining, agricultural, military, general industrial, marine, municipal, recreational, and specialty vehicles. Commercial Vehicle Group, Inc. was founded in 2000 and is headquartered in New Albany, Ohio.
Advisors' Opinion:- [By Lisa Levin]
Auto Parts Wholesale: This industry moved up 1.46% by 10:40 am. The top performer in this industry was Commercial Vehicle Group (NASDAQ: CVGI), which gained 2.3%. Commercial Vehicle Group shares have jumped 39.58% over the past 52 weeks, while the S&P 500 index has gained 22.24% in the same period.
Hot Consumer Companies To Invest In Right Now: C&C Group PLC (CCGGY)
C&C Group plc, incorporated on March 19, 2004, is engaged the production, marketing and selling of cider and beer. The Company operates in five segments: Republic of Ireland (ROI), Cider United Kingdom (Cider UK), Tennent�� United Kingdom (Tennent�� UK), International, and Third Party Brands United Kingdom (Third Party Brands UK). The Company�� cider brands include Bulmers, Magners, Gaymers Cider, Blackthorn Cider, Olde English, Addlestones, Woodchuck Hard Cider, Wyder�� Cider and Hornsby��. Its other cider brands include Bulmers Berry, Bulmers Pear, Magners Pear, Magners Specials, Special Vat, K, Natch and Diamond White.
ROI includes the results from sale of all products in the Republic of Ireland (ROI), including Bulmers, Tennent��, Caledonia Smooth and third party brands. Cider UK segment includes the results from sale of the Company�� cider products in the United Kingdom, with Magners, Gaymers and Blackthorn the principal brands. Tennent�� UK segment includes the results from sale of the Company�� owned beer brand Tennent�� in the United Kingdom and sales of Caledonia Best in the United Kingdom. International segment includes the results from sale of the Company�� cider and beer products, principally Magners, Blackthorn, Hornsby��, Woodchuck and Tennent�� in all territories outside of the ROI and the United Kingdom. Third Party Brands UK segment relates to the distribution of third party brands and the production and distribution of private label products in the United Kingdom.
Advisors' Opinion:- [By Rich Duprey]
The growth in 2012 follows the success of hard cider sales the year before, which saw a 40% increase. Yet the industry leader remains C&C Group's (NASDAQOTH: CCGGY ) Vermont Hard Cider, whose Woodchuck Hard Cider has a 41% share of the market, though analysts say Angry Orchard owns nearly half of the on-premises market at the end of the first quarter.
- [By Rich Duprey]
While�Anheuser-Busch InBev (NYSE: BUD ) introduced some fruit-flavored margarita drinks and even Beam offered flavored bourbons to water down the market more,�the bigger threat may be coming from the explosive growth being witnessed in�hard cider.�Brewer Boston Beer (NYSE: SAM ) rolled out its Angry Orchard cider brand just last year and has already catapulted to the top of the market, surpassing C&C Group's (NASDAQOTH: CCGGY ) Vermont Hard Cider, the previous market leader.
- [By Rich Duprey]
At C&C Group's (NASDAQOTH: CCGGY ) annual meeting earlier this month, it was revealed that when it bought the Hornsby brand two years ago, it paid $25 million and got a 20% share of the market for its efforts. It paid more than 10 times that amount, or about $300 million, for Vermont Hard Cider and its top Woodchuck brand, and got another 42% share of the market. So C&C had almost two-thirds of the cider market all to itself.
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