Whether he’s picking stocks or just choosing where to eat, Jonathan Waite knows how to do it right. The Wall Street Journal named Waite, who earned his BS in accountancy from the Marriott School, the number one restaurant analyst in their 2004 Best on the Street survey.
An equity analyst for KeyBanc Capital Markets (KBCM) in Los Angeles, Waite was rated against all sell-side restaurant analysts who covered at least five restaurant stocks during the year. The survey included more than four thousand analysts nationwide; the top five stock pickers for each industry were chosen as “Best on the Street.”
Though Waite considers the title an honor, he remains unaffected by the attention. “It really hasn’t changed much of what I do,” Waite says. “An analyst’s calls generally speak for themselves.”
Waite’s calls in 2004 spoke loud and clear. His top pick was Ruby Tuesday, Inc., which returned 72 percent after he rated it a “buy” in February. He also scored big with recommendations for Red Robin Gourmet Burgers, Inc., and Sonic Corp., which returned 60 percent and 33 percent respectively.
In picking stocks, Waite focuses on companies with great management and good return on investment characteristics. He also talks to industry participants and people on the front lines to get a feel for the current business environment.
“While I try to separate my personal opinion about a restaurant from the analysis, I do try to put myself in the shoes of the target demographic to see what the potential appeal is,” Waite says.
Before joining KBCM, Waite worked for Vortex Capital Partners and Deloitte & Touche. “Even before I graduated, I knew I wanted to get into stock analysis and involved myself in the chartered financial analyst program,” he says. “My involvement with that program and previous experience in financial modeling helped me land this job.”
One perk of Waite’s job is eating out several times a week in the name of research; he also says his industry is easy to follow. “Other industries, such as technology, involve more moving parts, whereas restaurants simply involve consumer reception of a product,” he says. “For most of us, that’s an easy analysis.”
Waite graduated from the Marriott School in 1997 and says his undergraduate training often comes in handy. “BYU has one of the best accounting programs in the country,” he says. “I’m grateful for the opportunity I had to learn in an environment that fosters Christ-centered leadership.”
Waite and his wife, Stephanie, reside in Lakewood, California, with their two daughters.
