Why are casual dining stocks rallying in the face of rising energy and food prices?
Analysts at KeyBanc Capital Markets upgraded Brinker stock from "underweight" to "hold." (Brinker is the parent of Chili’s and other casual dining chains.) In a research note published Wednesday morning, they cited sales, which they say have stabilized and are likely to improve over the forthcoming six-to-twelve months.
CEC Entertainment said first-quarter earnings rose 3 percent and it expects continued strong sales at its Chuck E. Cheese's chain of restaurants
Meanwhile PF Chang’s shares closed higher after the Scottsdale, Ariz.-based restaurant operator increased its 2008 earnings guidance.
I think some of these stocks could be making bottoms, says Jeff Macke. It’s probably okay to buy Darden , California Pizza Kitchen and Brinker.
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to firstname.lastname@example.org.
Trader disclosure: On Apr. 23, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (CSCO), (XLF), (YHOO), (BEAV); Najarian Owns (CHK) Calls, (MSFT) Calls, (POT) Calls; Finerman Owns (GS); Finerman's Firm Owns (MO), (MSFT), (PM), (SUN), (TSO), (VLO), (WMT), (YHOO); Finerman's Firm Owns (FNM) Calls; GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"