Restaurant operators get their grades

|By:, SA News Editor

Hedgeye's Howard Penney has some strong feelings on which restaurant operators are managing themselves through the operational boom-and-bust cycles most chains endure as concepts are grown too fast.

The research analyst thinks Starbucks (SBUX -1%) and Brinker International (EAT -1.1%) have honed in on a correct management strategy to trim capex spending and "attack" the middle of the P&L to improve EBITDA, while Darden Restaurants (DRI -2.3%) stubbornly resists the idea.