DRI Darden Restaurants Inc

For Immediate Release

Chicago, IL – March 14, 2012 – Today, Zacks Equity Research discusses the Restaurants Industry, including Texas Roadhouse Inc. ( TXRH), Domino's Pizza Inc. ( DPZ), Yum! Brands ( YUM), Panera Bread Co. ( PNRA) and Darden Restaurants Inc. ( DRI).

 

A synopsis of today’s Industry Outlook is presented below. The full article can be read at   http://www.zacks.com/stock/news/71247/Restaurant+Industry+Stock+Review+-+March+2012

According to an analysis by NPD, which has a ten-year projection of foodservice trends based on aging, population growth and trend momentum, servings of breakfast sandwiches are projected to outpace the industry’s growth forecast. Annual servings per capita of breakfast sandwiches at foodservice are expected to jump from 11 in 2004 to 14 in 2019.

Non-alcoholic beverages remain a sweet spot in the U.S. eateries. According to Mintel Global Market Navigator, the US fruit juice drinks market expanded by 1% in 2011. This was an improvement on the 1.7% fall recorded in 2009 and breakeven in 2010. The market also has the ability to grow further through innovation, especially in healthier solutions. We see juicing giant Jamba geared up to leverage the trend by adding all fruits to its line-up.

There are other players like sector behemoths Starbucks venturing into the $50 billion category of healthy juices and McDonald's specializing in both frozen as well as hot beverages. McDonald's has been delivering strong comparable sales in the U.S. buoyed by its McCafe line.

We see continued sales recovery in the next few months as cold beverage provides a higher lift in comps as against hot beverage in winter.

M&A Activity

Merger and acquisition activity is also gaining momentum in the sector. The companies are looking at potential business partners to foray into different zones and unlock value. Apart from acquisitions, the companies are also divesting their slow-moving brands in order to spur growth.  For example, while Yum! Brands acquired China-based restaurant chain Little Ship, it also disposed two of its brands, Long John Silver’s and A&W, at the same time.

Currently, there are a number of stocks in the restaurant with a Zacks #1 Rank (short-term Strong Buy rating). These include Texas Roadhouse Inc. ( TXRH). Companies with Zacks #2 Rank (short-term Buy rating) include Domino's Pizza Inc. ( DPZ), Yum! Brands ( YUM), Panera Bread Co. ( PNRA) and Darden Restaurants Inc. ( DRI).

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

 
DOMINOS PIZZA (DPZ): Free Stock Analysis Report
 
DARDEN RESTRNT (DRI): Free Stock Analysis Report
 
PANERA BREAD CO (PNRA): Free Stock Analysis Report
 
TEXAS ROADHOUSE (TXRH): Free Stock Analysis Report
 
YUM! BRANDS INC (YUM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.