Goldman Sachs More Cautious On Restaurants, Cuts Sector Rating (SBUX) (YUM)
Get Alerts SBUX Hot Sheet
Price: $87.84 -1.03%
Rating Summary:
21 Buy, 25 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
21 Buy, 25 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Goldman Sachs has turned less sanguine about the Restaurant group and downgraded the sector Thursday from Attractive to Neutral on uncertain demand and full valuations. With the call, the firm downgraded ratings on Starbucks (Nasdaq: SBUX) and Yum! Brands (NYSE: YUM).
The firm said it's second-quarter survey of 2,000 US consumers indicates a decreased intent to dine out for the first time since mid-2008. In addition, there was a large spike in the number of people who classified restaurants as "less affordable."
Specifically on Yum! Brands, the firm cut the stock from Neutral to Sell citing risk to profits with China's GDP showing signs of slowing and food and labors costs still rising. On Starbucks, the firm downgraded the stock from Conviction Buy to Neutral on valuation and less upside to EPS as consensus estimates have moved up.
Goldman's top picks in the sector are Chipotle Mexican Grill, Inc. (NYSE: CMG) and Tim Hortons Inc. (NYSE: THI), where the firm sees same-store sales and EPS upside.
The firm said it's second-quarter survey of 2,000 US consumers indicates a decreased intent to dine out for the first time since mid-2008. In addition, there was a large spike in the number of people who classified restaurants as "less affordable."
Specifically on Yum! Brands, the firm cut the stock from Neutral to Sell citing risk to profits with China's GDP showing signs of slowing and food and labors costs still rising. On Starbucks, the firm downgraded the stock from Conviction Buy to Neutral on valuation and less upside to EPS as consensus estimates have moved up.
Goldman's top picks in the sector are Chipotle Mexican Grill, Inc. (NYSE: CMG) and Tim Hortons Inc. (NYSE: THI), where the firm sees same-store sales and EPS upside.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
- Acrivon Therapeutics Inc (ACRV) PT Lowered to $22 at Jones Trading
- Merck (MRK) PT Raised to $143 at Truist Securities
Create E-mail Alert Related Categories
Analyst Comments, DowngradesRelated Entities
Goldman Sachs Conviction Buy List, Goldman SachsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!