ST Robinson Humphrey downgraded O'Charley's (CHUX ) to overweight from equal-weight.
Analyst Howard Penney says second-quarter results were significantly below his estimates. He says the primary reason for the shortfall was poor same-store sales at O'Charley's restaurants. He believes O'Charley's is losing market share to Applebee's and Chili's. He notes comparisons still are decelerating while competitors are showing improvement. As such, he believes O'Charley's has operational issues that need to be addressed; he's taking a wait-and-see stance on shares. Penney placed the estimates under review.