Restaurant Earnings a Smorgasbord
Third-quarter earnings season will be potluck for the restaurant industry.
Despite recent progress in the economy, profits for some 20 dining chains are forecast to be up only 6%, on average, in the quarter, according to consensus estimate calculations by independent research firm Puglisi. S&P 500 earnings, by contrast, are expected to jump 14% over the same period.
Analysts cite a slew of factors -- including a still-weak economy, the late summer blackout in the Northeast and Hurricane Isabel -- that made the latest quarter a relatively difficult one.
"The third quarter was tough," said John Glass, an analyst at CIBC World Markets.Several chains guided below analyst expectations this summer, including Brinker International (EAT), Lone Star Steakhouse
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV