Seeking Alpha

Family dining restaurant stocks on watch

  • U.S. consumers appear to be skipping meals from the mid-scale and family dining sector of the restaurant industry as fast casual (Panera, Chipotle, Noodles) stays popular.
  • Darden Restaurants reported that both the Red Lobster and Olive Garden chains saw declines in same-restaurant sales of over 8% during the month of July and August traffic was also weak.
  • On watch: CAKE, RRGB, IRG, DIN, DENN, EAT, CBRL.
Comments (6)
  • chopchop0
    , contributor
    Comments (3131) | Send Message
    No wonder we keep seeing coupons for olive garden and RL everywhere. The smell of desperation.
    20 Sep 2013, 09:38 AM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
    So whats your point? I might be hungry but Id rather look like a cool bum with my new gold I phone than not.
    20 Sep 2013, 12:48 PM Reply Like
  • financeminister
    , contributor
    Comments (613) | Send Message
    I don't know about other folks but my household is in saving mode...we used to eat out a lot and go for places with deals like Olive Garden (two for 20 etc) but now we're keeping tabs on eating out and saving more. We're even making fancy meals at home instead of eating out at fancy places. Our savings rate iis now at 50% and half go to stocks.
    20 Sep 2013, 01:08 PM Reply Like
  • chopchop0
    , contributor
    Comments (3131) | Send Message
    Probably that, but def also the fast casual thing. Why go out to a mexican place when you can get a great burrito at CMG for under $7?
    20 Sep 2013, 01:16 PM Reply Like
  • sarichter
    , contributor
    Comments (275) | Send Message
    Exact same mode I've been in for the past two years. I'm just getting back into investing mode, but I'm saving over 50% of my take home and placing it in high yield (3%) cash accounts and the rest in good solid companies with a few lower cost higher risk stocks.
    20 Sep 2013, 01:40 PM Reply Like
  • mobyss
    , contributor
    Comments (1834) | Send Message
    The middle class continues to trade down as they run out of credit and their income stagnates or drops. Olive Garden becomes Chipolte. A trip to Disneyland becomes a trip to a local waterpark and maybe a new videogame for the X-box. A new car every six years becomes a "splurge" on new tires and a $100 detail (with "new car smell" air freshener), and another three or four years driving the old family hauler.


    All the QE and government welfare spending does nothing for these people, as they only own a few tens-of-thousand in stocks in their 401k, and they make just a little too much for SNAP cards and Obamaphones. They shop 70% lean ground beef while SNAPPERS sort through the T-bones, courtesy of the taxpayer.


    Until this trend of middle-class economic slippage stops (and it won't with anything close to current policy), expect to see more and more of these Darden type of surprises. I'd be really cautious about expecting a good Christmas shopping season this year. I'd almost expect it to start looking a lot like 2007.
    20 Sep 2013, 01:51 PM Reply Like
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