Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Restaurant Stocks: Now More Appetizing


By Dennis Milton Over the past three months, share prices across the restaurant industry have fallen significantly along with the broader market. Some stocks in the group have dropped more than 20%. At Standard & Poor's, we think the declines in some of the shares have made them more appealing, attractively valued investments. And that led us to upgrade our investment opinion on selected restaurant stocks on July 15.

The recent slump has created more reasonable valuations for some companies, given the industry's strong fundamentals, which include solid same-store sales growth, well-controlled labor and food costs, and strong balance sheets.

Based on their current valuations, we're upgrading Yum! Brands (YUM), the name behind KFC, Pizza Hut, and Taco Bell; and CBRL Group (CBRL), which operates Cracker Barrel restaurants, to 4 STARS (accumulate) from 3 STARS (hold). We have also raised our opinion on coffee chain Starbucks (SBUX) to 3 STARS from 2 STARS (avoid). Analyst Milton covers restaurant stocks for Standard & Poor's


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus