It’s understandable if you’re curious about how to buy Subway stock. After all, Subway has over 26,000 restaurants in the United States and over 44,000 locations in over 100 countries, making it the world’s largest fast-food corporation by location count.
Except for one problem, the Subway brand is well-known both domestically and internationally, which might make it a good firm for investors to invest in.
Doctor’s Associates is the private business that owns Subway. So, while you can’t buy shares in Subway, you can buy stock in other significant restaurant firms.
Below, we look at some fast-food-related alternative investment alternatives that can be a suitable fit for your portfolio.
McDonald’s Stock Competitors Subway Fast-Food Chain
The distinctive golden arches that make up the McDonald’s logo are well-known to most people.
The company operates 36,888 outlets worldwide, making it the world’s largest burger chain.
It began in 1955 in California with the goal of offering a high-quality hamburger.
It now serves hash browns, pancakes, and other items, as well as the iconic Big Mac and Quarter Pounder with cheese…. or a Royale with cheese, depending on where you are in the world… Toss in a scene from Pulp Fiction!
Coffee, Coke, and smoothies are among the beverages available at McDonald’s.
McDonald’s unveiled its Velocity Growth Plan in 2017, emphasising the company’s use of technology to provide better food and service.
In the United States, Wendy’s has 5,739 locations. It works mostly in North America, although having locations in 30 countries throughout the world.
Despite its limited geographic reach, the brand is the world’s third-largest hamburger franchise.
As of January 2017, franchisees held the great majority of Wendy’s stores.
Wendy’s teamed with Restaurant Brands International Inc. to open a chain of Tim Horton’s/restaurants Wendy’s in Canada.
According to the website of Restaurant Brands Inc., Tim Horton’s accounts for nearly 80% of all coffee poured in Canada.
Wendy’s may become a more appealing option for bullish investors as a result of this. It also makes Restaurant Brands shares a more appealing investment, especially for investors seeking portfolio diversification.
International Stock of Restaurant Brands
Restaurant Brands International is the parent company of a number of fast-food franchises in the United States and elsewhere.
It is the parent company of Tim Hortons in Canada and Burger King restaurants in the United States and around the world.
Burger King is expected to drive RBI’s foreign expansion plans, which could make the combined business appealing to investors.
In total, the company’s portfolio of branded businesses includes 23,000 sites.
It is also the owner of Popeye’s, a restaurant that specialises in spicy chicken and other New Orleans-style dishes.
The organisation does, however, provide food options for anyone searching for a quick and healthy meal for breakfast, lunch, or dinner.
Depending on the location, breakfast foods such as muffins and bagels are available, as well as wraps, soups, and chicken tenders for lunch and dinner.
The firms that make up the Restaurant Brands umbrella have a combined history of more than 150 years. And it’s because of its track record of profitability in all economic conditions that it’s an appealing fast food investment alternative to subway stock.
They’ve also demonstrated a commitment to give back to the communities they serve. The Tim Horton’s Children’s Foundation, for example, has helped tens of thousands of underprivileged children across Canada.
If you want to buy Wendy’s stock or invest in McDonald’s stock, tastyworks is a top-tier broker with no commissions on completing stock and options trades.
Stock of Domino’s Pizza
With 14,434 stores worldwide, Domino’s Pizza is one of the world’s largest pizza franchises. There are 5,491 restaurants in the United States in total.
The company claims to sell 1.5 million pizzas every day and declares its goal to become both a local and worldwide brand.
Domino’s, like many other fast food chains, is based on a franchise model.
Franchisees in foreign nations are typically granted the authority to operate in a specific territory.
Master franchisees will then grant others the right to run specific sites within those territorial rights.
Stock in the Dunkin’ Brands Group
Baskin-Robbins and Dunkin’ Donuts are both owned by the Dunkin Brands Group.
The two companies have a total of 11,336 sites in the United States and more than 20,000 sites worldwide.
Dunkin’ Donuts, which was founded in 1950, is one of the most well-known brands in the donut and pastry industry. It is, nevertheless, well-known for its wide range of hot and iced coffee items.
Baskin-Robbins, which first opened its doors in 1967, is recognised for its wide variety of ice cream flavours.
Here’s a link to a discounted cash flow valuation estimate for Dunkin’ Brands.
Frozen ice cream pizza and frozen beverages are also available at the company.
Each year, employees from all of the Dunkin Brands Group companies donate their time and money to a variety of charitable causes.
It’s part of the company’s corporate social responsibility (CSR) programme, which can be a unique selling factor for both customers and investors searching for a reason to invest.
Yum! Stocks of Brands
Yummy! Kentucky Fried Chicken, Pizza Hut, and Taco Bell are all owned by Brands.
Yum! Brands’ firms operate more than 44,000 outlets worldwide.
According to its corporate page, this restaurant firm builds seven to eight outlets per day.
This indicates that the company is actively growing, with the potential to expand earnings and maximise shareholder value.
KFC and Taco Bell are important players in the chicken and Mexican cuisine categories, respectively. Pizza Hut is the largest takeout pizza business in the world.
Yummy! Brands has been named to the Bloomberg Gender-Equality Index as a responsible corporate citizen.
Yummy! Brands was a subsidiary of PepsiCo until 1997, when it was spun off.
Best Fast-Food Chains to Invest in for Dividends
A dividend is a monetary payment provided to shareholders on a quarterly basis.
Shareholders have the option of depositing the funds in their bank accounts or using them to purchase additional shares in the firm that just paid them out.
Divide the share price by the dividend amount to calculate the dividend yield.
The yield is the figure you use to calculate your annual return on investment, disregarding share price variations.
In general, a yield of 2% to 3% is considered normal among mature enterprises with sound financials.
McDonald’s distributes a yearly dividend of around $4 per share, resulting in a dividend yield of 2.8 percent.
Dividend payments are made weekly, and the amount paid to shareholders has increased since the company’s initial offering in 1976.
Wendy’s distributes a yearly dividend of 34 cents per share, which has increased every 12 to 18 months since 2012.
A 1.9 percent yield is generated by the current dividend per share.
International Dividend of Restaurant Brands
On an annual basis, Restaurant Brands International distributes a dividend of $1.80 per share.
This corresponds to 45 cents per share paid out quarterly, resulting in a 3.97 percent dividend yield for investors. Since 2016, the corporation has increased its dividend on a regular basis.
Dividends on Domino’s Pizza Stock
The annualised dividend payout of Domino’s Pizza is $2.20 each year, with a yield of 0.8 percent.
Dividends are paid four times a year to shareholders, and the dividend amount has risen steadily since 2014.
Dunkin’ Donuts Dividend
On an annual basis, Dunkin Brands Group pays a dividend of $1.39.
Dividends are paid out every three months, and the amount paid out to investors has increased every year since 2013. The dividend yield is currently 1.86 percent.
Dividends Dividends Dividends Dividends Dividends Dividends Divide
Yum! Brands offered a $1.44 cents per share annual dividend at the time of writing.
Shareholders are paid on a quarterly basis. The current dividend yield is 1.56 percent.
Divide a company’s stock price by its earnings per share (EPS) for the last 12 months to get trailing price-to-earnings (P/E) statistics.
This metric can be useful to investors who want to assess a company’s overall health rather than just its current stock performance.
Wendy’s has one of the lowest trailing Price-earnings ratios among the firms that investors may explore as Subway alternatives.
With a trailing P/E of 16.66, Dunkin Brands Group has the second-lowest number on the list.
Yum! With a trailing P/E of 18.78, Brands came in third on the list.
The forward price-to-earnings (P/E) ratio of a corporation accounts for the fact that the ratio is based on expected future performance.
In general, forecasted earnings for the next four quarters or 12 months are considered the most important.
This statistic is typically more relevant for investors seeking for stocks with more growth potential.
McDonald’s has one of the lowest forward P/E ratios of any fast-food company worth investing in, at roughly 22x.
Yummy! With a forward P/E ratio of 24.2, Brands is the second-lowest, while Dunkin Brands is the third-lowest at 25.01.
McDonald’s and Domino’s both have room to expand internationally.
While you can’t buy Subway stock, there are plenty of other tempting fast-food stocks to consider.
Based on current investment statistics, it may be advisable to invest in either McDonald’s stock or Domino’s Pizza stock if you are primarily focused on emerging countries.
These two enterprises already have global brand awareness, yet a lot of overseas areas are still untapped.
These stocks may be able to increase in value both in the short and long term.
Of course, before evaluating whether a certain stock or industry is worth investing in, you should assess your investment goals and criteria.
Whatever you decide to do with your money, find a broker that offers low commissions, quick order execution, and cutting-edge trading platforms. All of those boxes are checked by thinkorswim and tastyworks.