Are Slower Big Mac Sales 'Weighing' On the Fast Service Restaurant Industry?

Shares of fast service restaurants are taking a beating today on the back of McDonald's (NYSE: MCD) shares down the most intra-day since the end of 2002. An analyst at Friedman, Billings, Ramsey released a research report saying McDonald's stock is fully valued and placed the equivalent of a 'hold' rating on the stock.

As McDonald's is the largest fast service restaurant in the world, its stock price movement usually has dramatic effects on other stocks within the industry. Shares of Chipotle Mexican Grill (NYSE: CMG), which was spun-off from McDonald's in 2006, are down more than $6, or more than 5%, to about $116.50. Chipotle's stock performed extremely well in 2007, rising more than 160%, but has lost 20% of its value so far in 2008's eight days of trading.

Elsewhere in the industry, shares of Yum! Brands (NYSE: YUM), Burger King Holdings (NYSE: BKC), Jack in the Box (NYSE: JBX) and Sonic Corp. (Nasdaq: SONC) are down 5.8%, 6.9%, 3.6% and 4.2%, respectively.

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