Consumers don’t seem to have the same appetite for casual dining that they had earlier in the year. Christopher O’Cull, VP Equity Research from Suntrust Robinson Humphrey says he remains cautious of the casual dining sector.
Although falling gas prices have left Americans with more money in their wallets, they're not spending it on casual dining, as some analysts had anticipated. O'Cull is expecting weak same store sales from the sector, from chains such as Apllebee’s, Brinker and others.
Who wins? According to O’Cull it’s Jack in the Box, McDonalds and other fast food chains. He says right now diners care more about price point and convenience than anything else. Perhaps it's a guilty pleasure, but Americans like their fast food, a little more.
For more from Christopher O'Cull and why he thinks consumers will stay away from casual dining click here.