J. Alexander's and McDonald's Reach New 52-Week Highs

While the markets headed lower this morning, restaurant operators J. Alexander's (NASDAQ: JAX) and McDonald's (NYSE: MCD) jumped to new 52-week highs of $7.27 and $90.45 per share, respectively.

J. Alexander's reported this morning that its second-quarter net income doubled from the same period of a year ago due to increased same-store sales and increased prices. And net income for the first half was up 26.5%. The Nashville-based company operates about 33 full-service casual dining restaurants in the U.S. that offer steaks, seafood, pasta and a full-service bar. It has a market cap of $37.8 million.

The long-term earnings per share growth forecast is 26.9%. The P/E ratio is 12.4, which is lower than the industry average. Its long-term debt has shrunk a little in each of the past few quarters. After shares spiked to a new high this morning, they fell back to $6.30, about 4.5% above the opening price. That share price is more than 45% higher than a year ago. The stock has outperformed competitors such as McCormick & Schmidts (NASDAQ: MSSR) and P.F. Chiang's (NASDAQ: PFCB) year to date.

McDonald's earnings per share have grown 17.8% a year over the past five years, due in part to increased efficiency, a strength of the world's largest fast-food company. It also has grown its dividends 27.5% a year over the past five years. Founded in 1948, McDonald's now operates more than 32,000 restaurants in about 117 countries. It sports a market cap of $92.4 billion.

The long-term earnings per share growth forecast is 10.4%. The return on equity is 37.4% and the dividend yield is 2.7%. The P/E and PEG ratios are higher than the industry average, but analysts on average recommend buying the stock. Shares are trading more than 19% higher year to date. The stock has outperformed competitors Wendy's (NYSE: WEN) and Yum! Brands (NYSE: YUM) in that time.