New Lifetime High Today: Popeyes Louisiana Kitchen (PLKI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Popeyes Louisiana Kitchen ( PLKI) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Popeyes Louisiana Kitchen as such a stock due to the following factors:

  • PLKI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.2 million.
  • PLKI has traded 3,196 shares today.
  • PLKI is trading at a new lifetime high.

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More details on PLKI:

Popeyes Louisiana Kitchen, Inc. develops, operates, and franchises quick-service restaurants. The company operates in two business segments, Franchise Operations and Company-Operated Restaurants. PLKI has a PE ratio of 34.5. Currently there are 4 analysts that rate Popeyes Louisiana Kitchen a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Popeyes Louisiana Kitchen has been 199,900 shares per day over the past 30 days. Popeyes Louisiana Kitchen has a market cap of $1.2 billion and is part of the services sector and leisure industry. The stock has a beta of -0.34 and a short float of 4.4% with 3.49 days to cover. Shares are up 36.2% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Popeyes Louisiana Kitchen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues rose by 11.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • POPEYES LOUISIANA KITCHEN has improved earnings per share by 13.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, POPEYES LOUISIANA KITCHEN increased its bottom line by earning $1.41 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.41).
  • Net operating cash flow has increased to $16.30 million or 18.97% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -17.73%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 8.9% when compared to the same quarter one year prior, going from $9.00 million to $9.80 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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