Restaurant Stocks
3129 views
Rate Now: 1 2 3 4

average rating: 0.00 / 0 ratings
Created by arnabdgp
DESCRIPTION:

Date updated:04-25-2007

We remain selective on the restaurant sector in 2007, with ongoing challenges from the current/operating environment.Rising corn and feedstock prices along with cyclical changes and food-industry capacity rationalization will likely continue to impact proteins (beef and chicken being primary restaurant inputs), as we look out toward 2008. Many restaurant companies have 2007 contracts at prices below current spot-market levels, but appear to be staring at material "reinvestment risk" as they look out to next year.We received what could be an "early shot across the bow" yesterday as Brinker International (EAT) discussed food-cost pressures in some of its contracts that expire with its coming June fiscal year end.
Given the above-mentioned food-cost pressures as well as labor-costs pressures (from state and likely federal minimum-wage increases), we remain cautious regarding the stocks, particularly casual-dining names, many of which continue to have negative same-store sales.The quick-service restaurants sector appears to be better positioned, given positive sales trends and franchise business models, which provide some degree of inflationary protection. Price increases are one way to help offset food costs, but the current casual-dining sales environment makes this lever harder to pull.
Banc of America Securities

symbol name last price % change open
  • +
  • EAT
    Brinker Intl Inc
  • $13.64
  • -0.66%
  • $13.85

No Analysis added

People owning EAT also tend to own: HOGAAPLCEGCSCOEMRFPLHP

TheStreet.com Rating: C What is this?

  • +
  • APPB
    Appb
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning APPB also tend to own: DXYNFRNIPASNABIPCNTFPFCOPRCS

TheStreet.com Rating: No Rating What is this?

  • +
  • DRI
    Darden Restaurant
  • $31.44
  • -0.82%
  • $31.40

No Analysis added

People owning DRI also tend to own: AMGNAPABACCCOPCVXDOW

TheStreet.com Rating: B- What is this?

  • +
  • OSI
    Osi
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning OSI also tend to own: BKCCASAHNZLSSMCDPZZIWEN

TheStreet.com Rating: No Rating What is this?

  • +
  • CAKE
    The Cheesecake Fa
  • $18.80
  • -1.52%
  • $18.90

No Analysis added

People owning CAKE also tend to own: BBBYEXPGEMSFTXOMBENC

TheStreet.com Rating: C+ What is this?

  • +
  • PNRA
    Panera Bread Comp
  • $63.74
  • +0.16%
  • $63.32

No Analysis added

People owning PNRA also tend to own: SHFLSIRIUTXXMSRBAMBBDBWF

TheStreet.com Rating: B What is this?

  • +
  • RUBO
    Rubio's Restauran
  • $7.21
  • +4.49%
  • $7.00

No Analysis added

People owning RUBO also tend to own: CLFCNEENTFCXGSLMCNSTK

TheStreet.com Rating: C What is this?

  • +
  • CHUX
    O'charley's Inc.
  • $6.26
  • -1.57%
  • $6.38

No Analysis added

People owning CHUX also tend to own: DENNFBBYHYEG.OBINTCRESTSYNO

TheStreet.com Rating: D What is this?

  • Page 1 of 2
  • 1
  • 2
previous next

Portfolio not tracked!

Comments not available

ADD YOUR COMMENTS:

latest articles | popular forums
Cramer's Take on Headline Stocks...

Not a Stockpickr member? Join the community today -- for free.Regardless of why a stock is in the news, it never hurts to hear what a professional investor has to say about...

11.20.09 | 11:48 AM
Jim Cramer's Portfolios of the Week

By Roberto Pedone Posted on Nov. 20, 2009 According to Jim Cramer, options expiration is driving the current market selloff. He pointed out that the only stocks that we...

11.20.09 | 08:09 AM
'Fast Money' Portfolios of the Week

By Roberto Pedone Posted on Nov. 19, 2009 According to CNBC’s “Fast Money” traders, the stock market is showing no signs of stopping its current bull run. Joe Ter...

11.19.09 | 11:13 AM
Squeezing the Shorts: Earnings G...

By Jonas Elmerraji Posted on Nov. 18, 2009 There are plenty of reasons for stocks to have the attention of short-sellers. Waning financials, a deteriorating business mo...

11.18.09 | 12:36 PM
more articles
recent answers | popular answers
bubble(0)
today 's lists
Analyst Upgrades

Analyst Upgrades or Estimate Increases for Nov. 20, 2009. Read more here. more

Analyst Downgrades

Analyst Downgrades or Estimate Reductions for Nov. 20, 2009. Read more here. more

Biggest % Gainers

Here are some of the largest % gainers from Nov. 20, 2009. more

show all today's lists