04.09.2009 , www.thestreet.com
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The model upgraded fast-food chain Burger King(BKC Quote) to "buy."
The numbers: Fiscal fourth-quarter revenue declined 2% to $630 million, but profit jumped 16% to $59 million, or 43 cents a share. Its gross margin dropped from 38% to 33% and its operating margin fell from 14% to 13%. Burger King has less-than-ideal liquidity, demonstrated by its quick ratio of 0.6. A debt-to-equity ratio of 0.9 indicates reasonable leverage.
The stock: Burger King has fallen 27% this year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 12, a discount to other restaurants and the market |