2014 was a bustling year for IPOs, and this recently IPO’d burger company is a Top Pick for 2015. Driven by real sales and earnings (not always the case with IPO’s), the company’s expansion plans are on track.
Habit Restaurants (HABT)
from Equity Research & Portfolio Evaluation, Inc.
Voted the “Best Tasting Burger in America” by Consumer Reports, the Habit Burgers (HABT) should satisfy the appetite of hungry burger lovers and investors alike.
After receiving this vote of confidence from Consumer Reports in July, Habit Restaurants won a strong vote of confidence from Wall St. with its IPO November 20, 2014. Habit stock shares skyrocketed nearly 120% to $39.54 on its debut after pricing the IPO shares at $18. Since a peak of over $44 in mid-December, Habit shares are now building a post-IPO base in the mid-$30’s.
The growth company has delivered strong earnings and revenue gains. Habit Restaurant’s last 3 quarters of EPS growth have averaged 63%. Net income was $5.8 million in 2013, a gain of 88% from a year earlier. 2013 revenue of $120 million was up from $84 million the prior year and $28 million as recently as 2009.
With 26 restaurants in three California markets in 2009, Habit now operates 99 restaurants in 10 markets in four states. In 2015, it expects to open 26 to 28 new restaurants. In August, Habit opened its first location on the East Coast (New Jersey). The company’s vision is for over 2,000 locations in the U.S.
John J. Gardner, Equity Research & Portfolio Evaluation, Inc., www.erpeinc.com, 925-242-2120, December 24, 2014