This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Restaurant Stocks: Earnings to Watch

Stifel's West noted "most casual dining concepts are expected to report flat-to-positive same-store-sales comps, but the low single-digit gains compared with mid-single digit declines for the third quarter during the past 2 to 4 years further supports our view that consumers will only gradually trickle back to casual dining."

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Stifel's West believed a number of restaurant sector names were "currently priced for a 'beat and raise' scenario, but our expectations for continued stagnant (at best) comp growth and cost inflation could lead to a rotation out of higher beta names to higher yield with international exposure."

He also said the gap between casual dining chains and quick service (QSR), or fast food, chains remained narrower than in 2009, with easier comparisons at those in the casual space which should provide year-over-year growth.

Consumers will continue to keep a firm check on discretionary spending, and when they do decide to spend money on luxuries like eating out they turn to lower price points, said Samadi. "Fast food restaurants will benefit as the economy improves, unemployment rates decline and consumers begin to spend money again on luxuries like eating out."

Here then is a look at some of the biggest names in the sector, and what investors should be thinking about as the earnings season wraps up.

2 of 22

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BWLD $182.97 0.00%
CMG $655.36 0.00%
EAT $60.85 0.00%
MCD $97.88 0.00%
PNRA $159.53 0.00%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs