Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: Fastenal, CEC Entertainment, Fiesta Restaurant Group, Jack in the Box and Buffalo Wild Wings

CHICAGO, Jan. 20, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Fastenal Company (Nasdaq:FAST-Free Report), CEC Entertainment, Inc. (NYSE:CEC-Free Report), Fiesta Restaurant Group, Inc. (Nasdaq:FRGI-Free Report), Jack in the Box Inc. (Nasdaq:JACK-Free Report) and Buffalo Wild Wings Inc. (Nasdaq:BWLD-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Fastenal Down to Strong Sell

 

On Jan 17, Zacks Investment Research downgraded Fastenal Company (Nasdaq:FAST-Free Report) to a Zacks Rank #5 (Strong Sell) following disappointing fourth-quarter and fiscal 2013 results.

 

Why the Downgrade?

Fastenal's adjusted earnings of 33 cents per share in the fourth quarter of 2013 missed the Zacks Consensus Estimate by a penny. Earnings were flat year over year, in contrast to the company's guidance of year-over-year growth, as sales and margin deteriorated beyond expectations.

 

Fastenal reported net sales of $813.8 million in the fourth quarter of 2013, up 7.5% year over year. Net sales also missed the Zacks Consensus Estimate of $816 million by a marginal 0.3%.

 

The national distributor of industrial/construction supplies has been struggling with its top line due to lower sales of its fasteners product line which is being hurt by end-market slowdown and broader economic uncertainty.

 

Management has been slowing down store growth in favor of increasing headcount to drive near-term sales growth. However, such initiatives increase employee costs and hurt margins.

 

In fourth-quarter 2013, gross margin declined 100 basis points (bps) from the prior-year quarter to 50.6%.Gross margin also declined 110 bps sequentially. Fourth quarter gross margin missed the company's long-term gross margin range of 51% to 53%. Gross margin fell short of company's expectation of margin expansion due to weakness in fastener products, a competitive marketplace, reduced supplier incentives and lower utilization of trucking networks.

 

Fastenal's earnings of $1.51 per share in fiscal 2013 increased 6.3% year over year but missed the Zacks Consensus Estimate of $1.54 by 1.9%. The company reported net sales of $3.326 billion in fiscal 2013, up 6.1% year over year. Net sales missed the Zacks Consensus Estimate of $3.327 billion.

CEC Entertainment Agrees to Buyout

Family dining chain CEC Entertainment, Inc. (NYSE:CEC-Free Report) recently entered into an agreement as per which an affiliate of Apollo Global Management (APO), a leading global alternative investment manager, will take over the company for $1.3 billion, including debt. The cash tender offer of $54.00 per share represents a 25.0% premium over the company's closing share price as of Jan 7, 2014.

Per media reports, CEC Entertainment that runs the Chuck E. Cheese chain was looking for a buyer. This company offering food and games has been struggling of late due to the challenging environment.  In fact, third quarter revenue (reported in November) declined 0.4% year over year due to a 3.6% drop in food and beverage sales. Comps declined 2.1% hurt by an 11% decrease in birthday party sales.

Due to the weak results, the board of directors of CEC Entertainment was looking for a suitable offer and approved the deal after reviewing a number of strategic alternatives. It also adopted a shareholder rights plan as per which it declared a dividend of one preferred stock purchase right on each outstanding share of common stock as of Jan 26, 2014.

The merger will enable CEC Entertainment to expand domestically as well as internationally and provide a substantial premium to its shareholders.

CEC Entertainment presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Fiesta Restaurant Group, Inc. (Nasdaq:FRGI-Free Report), Jack in the Box Inc. (Nasdaq:JACK-Free Report) and Buffalo Wild Wings Inc. (Nasdaq:BWLD-Free Report). While Fiesta Restaurant and Jack in the Box carry a Zacks Rank #1 (Strong Buy), Buffalo Wild Wings holds a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

 

Get the full Report on FAST - FREE

Get the full Report on CEC - FREE

Get the full Report on FRGI - FREE

Get the full Report on JACK - FREE

Get the full Report on BWLD - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

 

 

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

 

 

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...