5 restaurant stocks investors may lose appetite for in 2017 – december 12, 2016 – zacks. com
As 2016 draws to a close, we can look back and say that the U.S. Noodles and company uptown restaurant space has not been too enticing to investors. Noodles restaurant locations In fact, same-store sales growth has been rather dull in a difficult sales environment.
Despite economic growth, somewhat lower energy prices and higher income, consumers have increased their spending only modestly on dining out, which resulted in low consumption over the last few months. Noodles and company 96th street The situation has turned worse, thanks to higher health care costs and tightened credit availability in the U.S.
Moreover, unfavorable currency, a cooling Chinese economy and a tightening labor market have compounded restaurateurs’ woes. Noodles house menu dubai Traffic has also been weak.
Hence, while slowing sales is posing challenges to restaurateurs’ top-line growth, rising labor costs is turning out to be a headwind to their bottom-line improvement.
The restaurant industry has clearly struggled this year, which is being touted as its worst since the recession. Noodles and company wifi What’s even worse is that the industry metrics also point to a not-so-rosy outlook.
In fact, per a report by TDn2K’s Black Box Intelligence, the third quarter of 2016 marked the third consecutive quarter of negative comparable sales for the restaurant industry as a whole.
Moreover, as per NPD Group, traffic at U.S. Noodles and company appetizers fast-food restaurants fell 1% in the third quarter, marking the sector’s first traffic decline in five years and continuing the somber mood at the restaurant industry.
In fact, the Zacks categorized Retail-Restaurants industry had gained a mere 2.5% year to date. Noodles and company birthday Also, the industry currently stands at the bottom 42% of the over 250 Zacks categorized industries.
Thus, given the dwindling prospects of the restaurant industry, it is unlikely that things will change for some of its players in the near term. Noodles and company salary Thus, it would be wise for investors to reshuffle their portfolio, and get rid of stocks that may hurt returns.
With the help of the Zacks Stock Screener, we have zeroed in on five stocks in the Retail-Restaurants industry with an unfavorable Zacks Rank. Company noodles Notably, these stocks are also witnessing downward revisions in estimates, hinting at analysts’ skepticism about their future performance.
BJ’s Restaurants, Inc. How do they make noodles ( BJRI – Free Report) owns and operates a chain of high-end casual dining restaurants in the U.S., which serve its signature deep-dish pizzas, salads, sandwiches, burgers, pastas, steaks and hand-crafted beers. Yamamori noodles menu Notably, the stock has declined 8.3% year to date.
Moreover, this Zacks Rank #4 (Sell) company expects sales headwinds in the near term because of social and political issues, increasing global uncertainty and weakening consumer confidence which is resulting in continued decline in traffic. Noodles and company louisville co Besides, the Zacks Consensus Estimate for the company’s 2016 and 2017 earnings declined 4.9% and 8.5%, respectively, over the last 60 days.
Founded in 1969 in Seattle, WA, and made public in 2002, Red Robin Gourmet Burgers, Inc. Restaurant noodles ( RRGB – Free Report) is a full-service casual dining restaurant chain that serves an assorted range of burgers. Noodles menu with prices Notably, the company has been witnessing rising costs and expenses since the beginning of 2016, mainly due to higher labor costs. Noodles and friends Moreover, the stock has lost 12.9% value year to date.
In addition, as the operating environment has become increasingly challenging, the decline in sales volumes has started to impact the returns from new restaurant openings. Noodles and company near me As a result, Red Robin is slowing down its development plan significantly for 2017 and 2018. Noodles and company nutrition data Further, this Zacks Rank #4 company has been seeing a downward trend in earnings estimates. Noodles and more menu Over the past 60 days, the Zacks Consensus Estimate for 2016 and 2017 earnings decreased 8% and 8.7%, respectively.
Headquartered in Miami, FL, Fiesta Restaurant Group, Inc. Noodles and company moorhead ( FRGI – Free Report) owns and operates quick-casual restaurants under the Pollo Tropical(R) and Taco Cabana(R) brand names in the U.S. Where do noodles originated from Notably, the company missed the Zacks Consensus Estimate for earnings and revenues in the past three trailing quarters and its stock has witnessed a decline of 11.8% year to date.
Moreover, this Zacks Rank #4 company had lowered its full-year 2016 comps guidance for the Pollo Tropical brand previously and plans to close 10 company-owned Pollo Tropical restaurants. Noodles and company arvada Further, over the past 60 days, the Zacks Consensus Estimate decreased 4.5% and 5.3% for 2016 and 2017 earnings, respectively.
Based in Broomfield, CO, Noodles & Company ( NDLS – Free Report) is a fast casual restaurant offering lunch and dinner. Noodles and company vegan It serves noodles, pastas, salads, soups, sandwiches, cheese, meatballs and beverages. Noodles company hours In fact, the stock has plunged 48.9% on a year-to date basis.
Notably, this Zacks Rank #4 company had lowered its full-year 2016 outlook earlier. Noodles website Moreover, the Zacks Consensus Estimate for the company’s 2016 and 2017 earnings declined 3.4% and 11.4%, respectively, over the last 60 days, adding to its troubles.
Based in Vancouver, WA, Papa Murphy’s Holdings, Inc. Noodles in broth ( FRSH – Free Report) operates as a franchisor and operator of the Take ‘N’ Bake pizza chain in the United States. Noodles and company recipes The company operates in three segments: Domestic Company Stores, Domestic Franchise and International. Noodles house menu Notably, the company’s shares have tumbled a significant 58.2% year to date.
Aggressive competition in the pizza segment remains a potent headwind and thus this Zacks Rank #4 company had earlier slashed its Domestic system-wide comps outlook for full-year 2016. Noodles and company hiring And if these weren’t enough, the Zacks Consensus Estimate for the company’s 2016 and 2017 earnings slumped 63% and 73.3%, respectively, over the last 60 days.
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