ZACKS INDUSTRY OUTLOOK: Restaurant Industry Stock Review - May 2010
In the midst of what is expected to be a moderate recovery, there are three potential drivers of net income growth for the restaurant industry: unit expansion, improved same-store sales and cost cuts. We like (BWLD), (MCD) and (CMG).
Despite the sluggish environment, there are defensive stocks in the restaurant industry that promises long-term growth opportunities. Buffalo Wild Wings Inc. (BWLD - Analyst Report) offers investors one of the strongest growth stories in this space with an annual growth target of 13% to 15% in units and 20% in net earnings. Buffalo Wild Wings has also been able to consistently deliver positive comps even when the recession hit the economy.
ZAKS also has SELL 4 rating - so go figure - left hand does not know what right hand is doing. We blame Goldman for doing same. At least ZAKS should move their rating to hold before liking a stock.
I am a buyer at these levels.
PLEASE DO YOUR OWN HOME WORK

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May 7, 2010
Edited: May 12, 2010
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