# SRV.un vs. BPF.un vs. KEG.un



## Dmoney (Apr 28, 2011)

I own BPF and KEG, and am trying to decide the best course of action going forward. I love the performance YTD, but at a 6.1% yield, I'm wondering if now's the time to switch. KEG has underperformed relative to BPF YTD and is yielding 6.8%. My initial purchase of KEG was when the yield spread between the two grew too high, and quickly corrected itself, allowing for a quick gain. Since then, they have traded pretty well in lockstep so I'm thinking now might be a decent time to up my exposure to KEG, and maybe decrease my exposure to BPF.

Then SRV comes across my screen, yielding 8.0% and up 39% YTD, better even than BPF up ~36% YTD. I'm wondering if it's a good play to get into SRV instead of BPF at this point, and take advantage of ~2% higher yield. 

The big differences I see are that BPF and KEG are nation-wide chains, SRV is very Toronto-centric (Jack Astors, Loose Moose, Alice Fazooli's and a few restaurants in downtown Toronto). One other factor that might be an issue and make this a bad time to be in any of them is a possible NHL lockout which would hurt Q4/12-Q3/12 (though only through Q2/13 for SRV since the Leafs have no history of making the playoffs anyways  and their year-ago results won't have strong sales related to last year's playoffs). 

Thoughts on relative strength of any of these names at current valuations?
Other suggestions in the restaurant business?


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## Eder (Feb 16, 2011)

OK heres my take...we have a Jack Astors in Calgary...it's not too cheap and the food is inedible. Keg has great food but like it or not they are serving red meat and the trend is to healthier options. (I own KEG but I'm not looking for much growth).
I ate at BP's in Sarnia tonite. They have a bunch of new items coming out in September to add to their menu. Many are healthy alternatives to pizza etc. I had their new Mediterranean pizza...it was off the hook...delicious. I think BPF is on the right track to continue to increase same store receipts...I love their food...most people do. (I own a ton of their stock but I wont buy more at today's price)
I also own A&W....I don't like their food and won't eat that crap but they are growing as well as paying a nice dividend...I think they will return 10% total to me this year...good enough.


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## liquidfinance (Jan 28, 2011)

Interesting 

I currently own BPF and SRV.

I have been looking at and still considering getting into Keg.


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## riseofamillionaire (Feb 23, 2012)

I have a little SRV and MTY, always thought about buying KEG but never panned out. Along with BPF and AW, I really like what Canadian restaurants are offering up for investments.


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## gibor365 (Apr 1, 2011)

Me 2 for last 3-4 months wanted to buy KEG, but still didn't...in any case I'd prefer KEG over BPF or PZA (consider it a junk food)...
I just don't like that KEG has so high P/E ratio (about 24).
SRV.UN P/E and P/B looks much better and yield is higher.... if Maple Leafs finally makes play-off it can benefit SRV  also I think Toronto will be hosting Panam games, also good for SRV


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## gibor365 (Apr 1, 2011)

Today SRV.UN had 2 trades (700 shares) for whole day! I've never seen such volume


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## donald (Apr 18, 2011)

I was thinking about ''food'' plays in the us last week(with the nfl up and runnung)for a short-term quater or 2....dpz/buffalo wild wings ects.....maybe way to simplistic and likely widely seasonal.....but the americans love there football(+30 million viewers always with football night in america)....sunday night,monday night and rotating thursday night football........even the beer companies.(esp bud)

Has anbody ever played a ''short-term" trend trade before on ''events" and a calculated bet,and does it usually work out?


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## liquidfinance (Jan 28, 2011)

Huge drop on SRV today. Current yield 8.9% Results didn't seem to bad so not sure why the huge drop. Could be a good entry point.


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## gibor365 (Apr 1, 2011)

liquidfinance said:


> Huge drop on SRV today. Current yield 8.9% Results didn't seem to bad so not sure why the huge drop. Could be a good entry point.


Indeed it's wierd such drop on SRV.UN. Nothing to do with earning results as they were 1 week ago. Probably big shareholder needed money and sold big chunk of the stock?
P/E is good ~11, P/B ~1.2, payout ratio < 100%.
Noticed drop too late, would've buy at $12 or lower....in any case placed limit buy


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## doctrine (Sep 30, 2011)

Results are great, not sure why it's dropping. Jack Astors, which makes up most of their sales, are having huge same stores sales growth, and they're opening up many more of those restaurants. At a 9% yield it's a great buy. It's a very small stock, so it doesn't take much to move it - 50k shares trading is only $600k worth.


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## My Own Advisor (Sep 24, 2012)

You folks own this stuff in TFSA or other registered accounts? Curious. BPF.UN has been on a nice run since 2009. 50,000+ shares moved on SRV.UN today, maybe out?


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## gibor365 (Apr 1, 2011)

My Own Advisor said:


> You folks own this stuff in TFSA or other registered accounts? Curious. BPF.UN has been on a nice run since 2009. 50,000+ shares moved on SRV.UN today, maybe out?


I own it in RRSP


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## Doug2000 (Apr 6, 2011)

Dinner at the Keg is always a sure thing, NEVER been disappointed

We went last Saturday, at 5:00, 2 hour wait, people where going to stand in the bar, not heading for the door.

Our meal was excellent as usual. $108 for the 2 of us.


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## Doug2000 (Apr 6, 2011)

Seriously considering buying SRV, the Keg just looks to expensive.


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