It certainly has been a disappointing year for shareholders of two of Australia's leading fast food companies.
Year-to-date both of their respective shares have vastly underperformed both the market and their industry peers.
Has this left them in the bargain bin now?
The Collins Foods Ltd (ASX: CKF) share price is down almost 11% since the turn of the year despite its shares gaining 13% in the last three months. I think this has left the KFC operator's shares trading at a great price for a long-term buy and hold investment.
At present Collins Foods' shares are changing hands at under 17x trailing earnings. I think this is reasonably cheap for a company which is expanding its store footprint at home and overseas at a rapid rate. Over the next five years the company intends to increase its store network by up to 10 new restaurant builds a year in Europe and up to 9 new builds each year in Australia. I expect this to result in above-average earnings and dividend growth.
The Domino's Pizza Enterprises Ltd. (ASX: DMP) share price has been one of the worst performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this year with a 35% decline. This means that investors can snap up the pizza chain operator for just 30x trailing earnings.
While this is still a premium over the market average, it is significantly cheaper than where its shares have traded in recent years and more than fair given its current growth outlook. The company is forecasting net profit growth of around 20% in FY 2018, and aims to open up to 200 new stores during the financial year.