Valuentum Exclusive Analysis for the Discerning Investor

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Jul 27, 2023

McDonald’s, Chipotle, Domino’s Second-Quarter 2023 Results Solid
Image: Shares of McDonald’s, Chipotle and Domino’s have done well since the beginning of 2020, with Chipotle leading the pack. McDonald’s and Chipotle aren’t going away anytime soon, and we’re not at all discouraged by their respective second-quarter 2023 same-store-sales performance; CMG’s performance gave the market pause, but the sell-off in the burrito maker’s shares was mostly profit-taking (after a huge run up so far in 2023). McDonald’s is a perfect stock for the current inflationary environment, in our view, while Chipotle remains one of the best unit growth stories in the restaurant arena. Another one of our favorites, Domino’s has recently broken through its downtrend. We don’t expect to make any major changes to our fair value estimates of MCD, CMG, or DPZ, and we continue to like shares of all three in the Best Ideas Newsletter portfolio.

Jul 20, 2023

Stock Report Updates
Check out the latest report updates on the website.

Jul 15, 2023

Subscribe to the Valuentum ESG Newsletter!
There may be no greater or better investment than becoming more exposed to the sustainable trend of environmental, social and governance (ESG) investing, where ESG research points to key risks of a company that could have tremendous implications on its intrinsic value or fair value estimate distribution. Subscribe to the monthly Valuentum ESG Newsletter today!

Jul 12, 2023

Domino’s Pizza Breaks Through Downtrend on Uber Eats and Postmates Deal
Image Source: Domino’s Pizza is up nearly 14% on a year-to-date basis during 2023, but the company’s shares haven’t done much over the past 52 weeks. On July 12, Domino’s Pizza announced that it had inked a new deal with Uber that would allow customers in the U.S. to order Domino’s food through the Uber Eats and Postmates apps with delivery provided by drivers of Domino’s and its franchisees. Domino’s Pizza continues to be a standout leader in digital initiatives across the restaurant arena, and the firm noted that the new agreement will open up Domino’s and its franchisees “to a new segment of customers and what (it) believes will be a meaningful amount of incremental delivery orders.” The high end of our fair value estimate of Domino’s stands at $450 per share.

Jun 27, 2023

ALERT: Big Yield Additions to Dividend Growth Newsletter Portfolio and High Yield Dividend Newsletter Portfolio
Image Source: Mike Cohen. With the federal funds rate standing at 5%-5.25%, the hurdle rate for yield in the Dividend Growth Newsletter portfolio and High Yield Dividend Newsletter portfolio is much higher these days. We’re not at all worried about a recession as that was largely priced in during 2022, and we’re looking ahead to strong nominal GDP and huge opportunities within artificial intelligence [AI]. Though we may add a dividend grower that is yielding below the 5% yield threshold to the Dividend Growth Newsletter portfolio with expectations for breakneck dividend-per-share expansion in the future, these days we’re looking for a couple incremental ideas that have yields already much higher than the 5% mark to add to the Dividend Growth Newsletter portfolio and the High Yield Dividend Newsletter portfolio. Let's dig in.

Apr 18, 2023

Brief Take: Chart of Best Ideas Newsletter Portfolio Idea Chipotle Looks Beautiful!
Image: Chipotle’s shares have surged to a 52-week high. We continue to like the company’s long-term market opportunity. Chipotle’s shares have surged past the high end of our fair value estimate range, but we expect to take another look at our valuation model to reflect greater confidence in an established restaurant concept that has plans to more than double its current store count in the longer run. Younger millennials and Generation Z (born 1997-2012) generally did not grow up when Yum Brands’ Taco Bell dominated Mexican cuisine, and many prefer Chipotle hands down. It’s probable, in our view, that Chipotle’s long-term target of 7,000 restaurants may also be conservative. Readers should expect us to increase our fair value estimate of Chipotle upon the next report update.

Apr 6, 2023

Legacy of Benjamin Graham
Legacy of Benjamin Graham: The Original Adjunct Professor. This film, brought to you by the Heilbrunn Center for Graham and Dodd Investing, Columbia Business School, premiered on February 1, 2013 at the 16th Annual Columbia Student Investment Management Association conference. Produced by: Louisa Serene Schneider. Shot & Edited by: Christina Choe.

Apr 3, 2023

Quick Take: McDonald’s Hits All-Time Highs!
Image: McDonald’s stock is soaring, and we think the company is one of the best-positioned for the current inflationary environment. Best Ideas Newsletter portfolio holding McDonald’s Corp. recently hit all-time highs on news that it would take a close look at the size of its workforce, temporarily shutting its corporate offices in the U.S. in advance of layoffs. Though not great news for many that may get the pink slip, the market likes the renewed focus on costs. The high end of our discounted-cash-flow derived fair value estimate of McDonald’s stock stands north of $300, and we expect further upside potential in shares, which are trading at ~$280 at the time of this writing.

Mar 24, 2023

How the Payment of a Dividend Impacts Intrinsic Value Estimation
"Dividends are a transfer of cash to the shareholders that the shareholders already owned."In this purely educational article, using historical data from 3M, let’s walk through the mechanics of how the payment of a dividend impacts the intrinsic value of a company. The takeaways may be somewhat counterintuitive but are nonetheless very important for members to understand.

Mar 23, 2023

The Dividend Cushion Ratio: Unadjusted Is Less Subjective, Adjusted Is More Subjective
Image Source: Mike Lawrence. Question: I'm a subscriber. I'm looking at your Dividend Report for Enterprise Product Partners. It says your Valuentum Adjusted Dividend Cushion ratio for EPD is 1.8 (a ratio that includes future expected proceeds from capital raising endeavors in the coming years), but several lines below it says the Unadjusted Dividend Cushion ratio, which is your regular normal ratio (a ratio that does not include future expected proceeds from capital raising endeavors in the coming years), is 0.22. Please explain the difference between the two ratios, and what is considered a good ratio for the Unadjusted Dividend Cushion ratio, what is an excellent score, what is neutral and what is poor? Also, how much relative importance should I give to each ratio? Also, further down in the section on Unadjusted Dividend Cushion, the chart of EPD has a large negative number in the blue bar, and your text says: "Generally speaking, the greater the 'blue bar' to the right is in the positive, the more durable a company's dividend, and the greater the 'blue bar' to the right is in the negative, the less durable a company's dividend." So that means that EPD's dividend isn't durable, yet your report earlier says that EPD's Dividend Safety rating is GOOD. Can you elaborate?