ChickenLips

Time To Start Nibbling at Restaurants?

Funniest article on Seeking Alpha yet.

Is it really smart to invest in companies you don't really know anything about? Is it smart to tell others to invest in companies you have no idea what their business model is or who their customers are?

I loved this line: "Natural gas prices have plunged, and food inflation looks now to be behind us." I guess the author never goes to restaurants or gets out of the house period. Otherwise, he would have encountered $4 gasoline to get his car to these restaurants that have freshly printed menus with higher prices on them!

I'm not sure I would be pouring tons of cash into consumer discretionary stocks right now. The economy is too weak and winter is coming up. These winter heating bills are going to kill the middle class consumer who eats at these establishments. Time will tell.

Restaurants Hit Hard Times as Two File for Bankruptcy

Have you been to a Bennigan's lately? I don't think they have been remodeled since they opened in 1976! Why pay full price for a mediocre meal in decrepit surroundings?

I like this article because it is proof that we are definitely in a recession. Restaurants that provide high quality food, great service, and good value will be the only survivors in the current era of shrinking disposable incomes.

Just recently, we headed out to Red Lobster for a quick bite to eat and noticed the newly printed lunch menus and empty tables. Those tables were full a few months ago. 25%+ price increases! The old higher dinner prices are the new lunch prices. A lot of restaurants haven't raised their prices yet, but if Red Lobster is any indication, those higher prices are coming.

Trader Mark, since inflation will be passed onto the consumer in the upcoming year, which restaurants listed on the stock exchange will prevail or fail in the future?