A Restaurant Recession Would Mean a National One -- Market Talk
DOW JONES & COMPANY, INC. 12:23 PM ET 7/26/2016
Symbol Last Price Change
MCD 121.93 -5.47 (-4.29%)
QUOTES AS OF 12:48:06 PM ET 07/26/2016
12:23 ET - Ahead of this morning's muted US results from McDonald's(MCD) , Stifel Nicolaus today put out a warning shot about the state of the restaurant business. Some others on Wall Street have already noted a spring slowdown in the sector. But Stifel went bearish on restaurants "as we confidently believe that, at a minimum" 2Q's sales slowdown across various types of establishments "reflects the start of a US restaurant recession--which may also represent a harbinger to a US recession in early 2017." For investors, the investment bank flagged that restaurant stocks "have historically led the market lower during the 3-to-6-month periods prior to the start of the prior 3 US recessions." Stifel downgrades 11 stocks, including putting Chipotle (CMG), Darden (DRI) and Panera (PNRA) at sell. They're down 2-4%. (kevin.kingsbury@wsj.com; @kevinkingsbury)
(END) Dow Jones Newswires
07-26-161223ET
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