CHICAGO, July 29, 2011 /PRNewswire/ -- Today, Zacks Equity
Research discusses the Restaurants, including Buffalo Wild
Wings (Nasdaq: BWLD), McDonald (NYSE: MCD), BJ's
Restaurants (Nasdaq: BJRI), Red Robin Gourmet Burgers
Inc. (Nasdaq: RRGB).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
A synopsis of today's Industry Outlook is presented below. The
full article can be read at
http://www.zacks.com/stock/news/57967/Restaurant+Industry+Stock+Review+%96+July+2011
With the economic outlook improving, the fortunes of a number of
industry players have turned around. These companies promise
long-term growth opportunities:
Buffalo Wild Wings (Nasdaq: BWLD) offers investors one of
the strongest growth stories in this space. Buffalo Wild Wings had
also been able to consistently deliver positive comps during the
height of market turmoil.
With consistent earnings and a healthy balance sheet,
McDonald's (NYSE: MCD) provides relative safety and moderate
growth opportunities in the current scenario, as well as exposure
to faster-growing international markets. McDonald's U.S.
comparable-store sales have been showing continued uptrend since
the last few months on strong sales of beverage as well as core
menu products.
Boasting a unique position in the hyper-competitive bar and
grill segment, yet another stock, BJ's Restaurants (Nasdaq:
BJRI) offers investors a strong growth story with a viable business
strategy and debt-free balance sheet. The company delivered
impressive second quarter results in terms of earnings per share
and same-store sales growth.
Improved Californian Market
The core California market,
which was badly hit by the recession resulted in a high rate of
unemployment and weak consumer confidence, has started to turn
around. We see plenty of growth opportunities in the California and Texas markets. BJ's Restaurants and Red
Robin Gourmet Burgers Inc. (Nasdaq: RRGB) are expanding
rapidly in California.
Job Growth in the Sector
The restaurant industry is the major contributor to job growth
in the U.S. According to the National Restaurant Association,
Texas and Florida will likely show the strongest job
growth over the next 10 years.
Remodels and Menu Innovations Remain Key to Success
Additionally, restaurants are accessing different means to plug
the problems of heightened competition in a somewhat over-supplied
domestic market. Companies continue to reduce their energy
consumption and are remodeling their restaurants to give an
up-market feel. They are rolling out new, smaller prototypes to
augment the perception of value and drive traffic thereby reducing
construction and occupancy costs to enhance returns on capital.
While Darden has embarked on an extensive remodeling plan for
its core brands like Olive Garden and Red Lobster to spur their
same-store sales, Chipotle Mexican Grill is introducing typical
Southeast Asian cuisine coupled with naturally raised food, for
which it is well known.
Zacks "Profit from the Pros" e-mail newsletter provides
highlights of the latest analysis from Zacks Equity Research.
Subscribe to this free newsletter today by visiting
http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leonard
Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results.
Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. The best way to
unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow
of Profitable ideas GUARANTEED to be worth your time! Register for
your free subscription to Profit from the Pros at
http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.