Could Kona Grill's (KONA) Poison Pill Indicate That Casual Diners Are Takeover Bait?

There's a little takeover buzz surrounding the casual diners today after small player Kona Grill, Inc. (Nasdaq: KONA) adopted a Rights Plan to protect shareholders in the event of any proposed takeover of the Company.

The company said the plan was not adopted in response to any specific takeover proposal, but in response to the general takeover environment, the volatility in the stock markets, and to protect the best interests of stockholders.

With a weak US economy and soaring gas prices, casual dining stocks have seen been under heavy pressure. Kona Grill is down 45% YTD, and others in the sector have seen similar declines.

Could Kona's adoption of a poison pill suggest that financial and strategic buyers are starting to look at takeovers in the sector? I believe the carnage in the sector will bring out the vultures and takeover will likely be on the horizon.

Here are some other stocks in the sector that may look interesting to potential buyers: Cheesecake Factory (Nasdaq: CAKE), BJ's Restaurants, Inc. (NASDAQ: BJRI), P.F. Chang's China Bistro (NASDAQ: PFCB), Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB), Benihana Inc. (NASDAQ: BNHNA).

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