- Several analysts are out with positive notes on the impact of tax cuts on the restaurant sector, including Baird's David Tarantino who sees a "good setup" for restaurant chains into 2018. There's also a report from Axios indicating that Roark Capital is loading up with $2B more for restaurant M&A. Roark sent heads swiveling last week when it backed the Arby's takeover of Buffalo Wild Wings (BWLD +0.1%).
- 43 out of the 48 restaurant stocks with a market cap of over $50M are in positive territory for the day. Notable outperformers include DineEquity (DIN +6.6%), Brinker International (EAT +6.9%), Sonic (SONC +5.1%), Cheesecake Factory (CAKE +5.3%), Chipotle (CMG +6.3%), Wingstop (WING +3.6%), El Pollo Loco (LOCO +4.3%), Chuy's Holdings (CHUY +4.6%), Zoe's Kitchen (ZOES +3.1%), Texas Roadhouse (TXRH +3.6%), Cracker Barrel (CBRL +3.5%), Habit Restaurants (HABT +5.4%) and Wendy's (WEN +3.4%).
- Also, keep an eye on Starbucks (SBUX +3.1%) after Cleveland Research boosted its FQ1 same-store sales estimate on the chain to +3.5% from +3.0%.
- Sources: CNBC, Axios, Bloomberg
- Now read: Starbucks: Rating Update
Original article