A Goldman Sachs analyst took a dim view of the nation's casual dining restaurant chains, telling investors in a research note that the industry will likely face pressure as diners ratchet down discretionary spending at least through next year.
An analyst on Wednesday downgraded Ruth's Hospitality Group Inc. and Morton's Restaurant Group Inc., mainly due to concerns about the weakening economy and consumer and business spending concerns.
An RBC Capital Markets analyst cut the price targets of eight restaurant companies on Wednesday, saying the chains are all facing slower sales and higher commodity costs.
After a second quarter of too many empty tables and falling profits, restaurant companies are planning to woo diners back with lower-priced dishes as the weather grows colder.