Savor the Flavor
The combination of high unemployment, stretched disposable income, rising food prices and escalating gasoline prices can spell trouble for a number of sectors, but the one that I'm keying in on is restaurants -- specifically, casual dining chains such as Red Robin Gourmet Burgers (RRGB), Famous Dave's of America (DAVE) and Buffalo Wild Wings (BWLD).
Not surprisingly, these trends have taken their toll on restaurant operator expectations. Earlier this month McDonald's (MCD) reported disappointing July comps, and soon thereafter Red Robin announced that for fiscal 2012 it expects underwhelming comp growth of near 0.5% compared to the prior year. Also, Outback Steakhouse parent Bloomin' Brands (BLMN) priced its IPO at $11per share, well below the earlier talk of $13-$15 per share, and CKE Restaurants postponed its IPO....251 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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