Tags: Analyst | Upgrades | Restaurants

Analyst Upgrades Restaurants on Expected Rally

Wednesday, 08 Sep 2010 09:05 AM

A Raymond James analyst said the restaurant sector is poised for a turnaround as long as fears of a "double dip" recession recede, and he upgraded several stocks.

Analyst Bryan C. Elliott said, with share prices and expectations somewhat low in the sector, "a new period of outperformance might be starting."

"We also believe that the small quick-casual niche will continue to see strong demand growth as higher-income consumers continue to trade down from full-service (for quicker meal occasions) and up from quick-service restaurants (for better quality)," Elliott added.

He raised his ratings on Darden Restaurants Inc., which operates Red Lobster, Olive Garden and other chains; The Cheesecake Factory; and PF Chang's China Bistro Inc. to "Outperform" from "Market Perform."

He raised his rating on Brinker International Inc., which operates Chili's Grill and Bar, to "Strong Buy" from "Outperform." And he raised his rating on Cracker Barrel Old Country Score Inc. to "Market Perform" from "Underperform."

As the Dow Jones Industrial Average fell, Darden shares fell 18 cents to close at $44.38. The Cheesecake Factory shares fell 40 cents to $25.35. PF Chang's shares fell 36 cents to $47.13. Brinker shares fell 16 cents to $17.87. Cracker Barrel shares rose $1.03 to $48.30.

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A Raymond James analyst said the restaurant sector is poised for a turnaround as long as fears of a double dip recession recede, and he upgraded several stocks. Analyst Bryan C. Elliott said, with share prices and expectations somewhat low in the sector, a new period of...
Analyst,Upgrades,Restaurants
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2010-05-08
Wednesday, 08 Sep 2010 09:05 AM
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