NEW YORK (TheStreet) -- The restaurant sector is poised for moderate growth this earnings season as uncertain economic times leaves consumers keeping a close watch on their limited discretionary funds.
Despite tepid expansion, some analysts remain optimistic for the short-term. "The combination of "still-recovering sales and still-benign costs (both food and labor)" makes for "a positive backdrop to [third quarter of 2010] results," noted Deutsche Bank analyst Jason West.
Stifel Nicolaus analyst Steve West said that "easy comps and extensive cost savings should offset strained sales from depressed consumer spending, boosting restaurant [third-quarter 2010 earnings-per-share] growth of 6% (though still less than 10% on average)."
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