107Sid

Restaurants Haven't Reached Demand Bottom Yet

As evidenced by recent action of most casual dining equities, restaurant stocks--like stocks in general, are discounting mechanisms. The poor current backdrop appears to have been amply discounted a few months ago. Waiting for traffic to pick up before pulling the "buy" trigger has already cost potential investors anywhere from 15% to 50%--of more. If you haven't been there, then it will likely be prudent to wait awhile before the next playable rally in the group unfolds--possibly from levels 10%-15% lower.