Let's take a look at the charts instead of the menus of these five restaurant stocks that have solid prospects and fundamentals, according to John Reese.
Buffalo Wild Wings
Buffalo Wild Wings (BWLD) doesn't have the strongest-looking chart, but it is making progress. The stock has been bottoming since February. It is not out of the "weeds" yet, but it is doing better.
In this daily chart, above, we can see that Buffalo Wild Wings made a low in February and a lower low in late April, but momentum made a higher low for a bullish divergence. Prices are over the flat 50-day average and still below the declining 200-day average. The on-balance-volume, or OBV, line is up from its February low. Closes above $160 and above $170 will strengthen the BWLD chart. A move below $135 will have the opposite effect.
Cracker Barrel Old Country Store
Cracker Barrel Old Country Store(CBRL) - Get Report seems to have the right technical ingredients. Prices are above the 50-day and 200-day moving averages. The OBV line is up strongly from a January low, signaling some aggressive buying. There are no bearish divergences between the price action and the momentum study right now to derail the rally.
Fiesta Restaurant Group
Americans may be going out to eat more than ever, but this bullishness hasn't found its way to Fiesta Restaurant Group(FRGI) - Get Report . Shares of FRGI have been under pressure the past 12 months. The stock tried to stabilize for around six months, but the downtrend resumed. Prices are below the declining 50-day and the declining 200-day moving average. The OBV line has been moving lower the past 12 months, telling us that sellers are more aggressive but the downtrend in the OBV line picked up speed since early May.
With no bullish divergences yet, FRGI could work still lower.
Red Robin Gourmet Burgers
The share price of Red Robin Gourmet Burgers (RRGB) - Get Report has been under pressure the past 12 months. No bottom is in sight yet. Prices were knocked lower in May, telling us the bear is still in control. Prices are below the declining 50-day and 200-day averages. The OBV line is pointed down, and there are no bullish divergences yet between the price action and the momentum study.
Ruth Hospitality Group
Ruth Hospitality Group(RUTH) - Get Report has been trying to find more carnivores. The price in this daily chart, above, have been trying to work higher. Prices are above the rising 200-day moving average line and testing the 50-day average. The OBV line is pretty neutral, and there are no bearish or bullish divergences.
In the short run, a close above $18 should get more bulls salivating.