Barclays on U.S. Restaurants: 2012 Outlook & Guidance...Burgers & Brew
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Up: 5 | Down: 4 | New: 11
Rating Summary:
22 Buy, 17 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 4 | New: 11
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Barclays on U.S. Restaurants: 2012 Outlook & Guidance... Burgers & Brew
Analyst Jeffrey A. Bernstein, said, "The following is the December 2011 edition of our monthly Bernstein's Burgers & Brew: What's on Investors' Minds, which focuses on a particular topic of interest in the restaurant industry. In this edition, we look to 2012, analyzing key issues and trends across the industry and related guidance provided by each company. 2011 stock (and comp) performance was led by our specialty concepts, followed by QSR, with casual dining the laggard. As we start 2012, we believe the same pecking order will prevail, though with our expectation for an improving macro, casual dining should ultimately outperform QSR as we move through 2012. In terms of top picks: 1) Brinker Int'l (NYSE: EAT) followed by Texas Roadhouse (Nasdaq: TXRH) and Darden (NYSE: DRI) in casual dining, 2) Wendy's (NYSE: WEN) and McDonald's (NYSE: MCD) in QSR, & 3) Buffalo Wild Wings (Nasdaq: BWLD) in specialty."
"We expect 2012 will be another year of meaningful inflation (3-5%), though at or slightly below 2011 levels. With pricing (2%+) now in place for most, we expect restaurant margins to be better protected, with potential for EPS upside to return in the back half of 2012."
Analyst Jeffrey A. Bernstein, said, "The following is the December 2011 edition of our monthly Bernstein's Burgers & Brew: What's on Investors' Minds, which focuses on a particular topic of interest in the restaurant industry. In this edition, we look to 2012, analyzing key issues and trends across the industry and related guidance provided by each company. 2011 stock (and comp) performance was led by our specialty concepts, followed by QSR, with casual dining the laggard. As we start 2012, we believe the same pecking order will prevail, though with our expectation for an improving macro, casual dining should ultimately outperform QSR as we move through 2012. In terms of top picks: 1) Brinker Int'l (NYSE: EAT) followed by Texas Roadhouse (Nasdaq: TXRH) and Darden (NYSE: DRI) in casual dining, 2) Wendy's (NYSE: WEN) and McDonald's (NYSE: MCD) in QSR, & 3) Buffalo Wild Wings (Nasdaq: BWLD) in specialty."
"We expect 2012 will be another year of meaningful inflation (3-5%), though at or slightly below 2011 levels. With pricing (2%+) now in place for most, we expect restaurant margins to be better protected, with potential for EPS upside to return in the back half of 2012."
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