Restaurant stocks as an industry are down 1.68% year-to-date vs a 4% advance for the broader US stock market. I think I know why – and no, I don’t see any reasons to be getting long here…
The pissing and moaning over commodity prices in the summer of 2007 was epic on every single restaurant conference call I sat in on. I mean one call was lamer than the next. When they weren’t blaming the fact that Easter weekend had jumped forward into the quarter it was “high gas prices” this and “high fruit costs” that. One company said they would have earned money rather than posted a loss for the quarter had they only closed down for one day part!
Fast forward to now: Raw food costs have shot up into the stratosphere and with $90 oil, it would appear that utility costs (a restaurant’s arch enemy) will head higher as well.
I ran a quick screen for some of the restaurant stocks with the lowest operating margins, essentially those I deem most susceptible to the spiking of commodity costs going into the spring. I’ve also included the debt-to-equity ratios for each and then I colored the spreadsheet purple and pink because, well, I’m a giant girl.
Let’s take a look at one of these just to get a sense of how ugly the stocks look right now. Below is a chart for Carrols Restaurant Group ($TAST). This is the parent company of something called Taco Cabana, they’re also the largest Burger King franchisee in the nation…
Ucchhh, I wouldn’t buy this stock for Bin Laden’s rollover IRA.
I’ve not done any deep homework lately on individual restaurant stocks because, to me, names like these become The Untouchables in an environment like this one.
Most of you won’t own these stocks in particular, but you may want to scan your holdings in light of the new raw cost environment and try to get a sense of who might come out with a surprise miss or preannouncement.
My developer is making an attempt to persuade me to transfer to .web from PHP. I have always disliked the notion because of the charges. But he’s tryiong none the much less. I have been making use of Movable-variety on a quantity of internet sites for…
Hey! I know this is somewhat off matter but I was wondering if you knew the place I could get a captcha plugin for my remark sort? I’m using the exact same blog platform as yours and I’m possessing problems discovering a single? Many thanks a good deal…
[…]we like to honor a lot of other world-wide-web web pages around the internet, even if they arent linked to us, by linking to them. Below are some webpages worth checking out[…]
When I to begin with commented I clicked the “Notify me when new responses are added” checkbox and now each time a comment is included I get a few email messages with the very same remark. Is there any way you can eliminate me from that service? Thank…
I’m actually experiencing the layout and layout of your blog. It’s a very easy on the eyes which can make it much more enjoyable for me to appear listed here and visit far more often. Did you employ the service of out a developer to develop your topic?…
I know this if off subject matter but I’m hunting into commencing my very own weblog and was curious what all is needed to get set up? I’m assuming having a website like yours would expense a pretty penny? I’m not quite web savvy so I’m not one hundred…
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Subscribe & Reform
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
Title
[…]always a massive fan of linking to bloggers that I like but do not get a great deal of link love from[…]
Title
[…]here are some links to websites that we link to for the reason that we assume they are worth visiting[…]
تردمیل خانگی
My developer is making an attempt to persuade me to transfer to .web from PHP. I have always disliked the notion because of the charges. But he’s tryiong none the much less. I have been making use of Movable-variety on a quantity of internet sites for…
marrakech to fes desert trip
[…]check below, are some completely unrelated web-sites to ours, having said that, they are most trustworthy sources that we use[…]
adam sex toys
[…]check beneath, are some totally unrelated websites to ours, nonetheless, they’re most trustworthy sources that we use[…]
تجهیزات ورزشی پویاجیم
we arrived across a amazing web site that you just could possibly delight in. Just take a seem in scenario you want
adam eve deal
[…]we came across a cool site that you just could possibly love. Take a appear for those who want[…]
پک آماده دوربین مدار بسته
Hey! I know this is somewhat off matter but I was wondering if you knew the place I could get a captcha plugin for my remark sort? I’m using the exact same blog platform as yours and I’m possessing problems discovering a single? Many thanks a good deal…
foam dipped awma sparring kicks
[…]Here is an excellent Blog You might Uncover Intriguing that we Encourage You[…]
long island iced tea ingredients 1 oz gomme syrup
[…]we like to honor a lot of other world-wide-web web pages around the internet, even if they arent linked to us, by linking to them. Below are some webpages worth checking out[…]
تولید محتوا
When I to begin with commented I clicked the “Notify me when new responses are added” checkbox and now each time a comment is included I get a few email messages with the very same remark. Is there any way you can eliminate me from that service? Thank…
بازاریابی شبکه های اجتماعی
Many thanks again for the site post.Really thank you! Excellent.
دوربین مدار بسته دیجی کالا
I’m actually experiencing the layout and layout of your blog. It’s a very easy on the eyes which can make it much more enjoyable for me to appear listed here and visit far more often. Did you employ the service of out a developer to develop your topic?…
Brazilian Hair
[…]we came across a cool website that you may get pleasure from. Take a appear in case you want[…]
Download Rs From
I know this if off subject matter but I’m hunting into commencing my very own weblog and was curious what all is needed to get set up? I’m assuming having a website like yours would expense a pretty penny? I’m not quite web savvy so I’m not one hundred…