Pursuits
Investors Lose Appetite for Restaurant Stocks as Rally Fades
- Leaders become laggards as El Pollo Loco and Noodles hit lows
- Weakness for restaurant chains follows slump in retail stocks
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Restaurant stocks are facing lean times after a six-year runup.
After shares of eateries such as Domino’s Pizza Inc., Kona Grill Inc., Ruth’s Hospitality Group Inc. and Popeyes Louisiana Kitchen Inc. soared more than 1,000 percent, the industry is facing its first annual loss since 2008. Some of the leaders are now laggards, as more than 20 restaurant stocks have slumped at least 10 percent in 2015, while El Pollo Loco Holdings Inc. and Noodles & Co. are among those that hit all-time lows within the past month.