Search

Stocks in the restaurant industry have performed will in late 1999 and early 2000 despite good earnings and the good US economy. The long-term prospects for the restaurant industry remain favorable due to the habits of the aging baby-boom generation and other customer-focus factors of the industry. There are several timely stocks in this sector, and investors will find several with good potential for the next three to five years.

Stocks in the restaurant industry have become less timely in 1999 in spite of good operating results during the year for many chains in this sector. Competition and rising interest rates are two of the challenges that the industry faces in the year 2000, and many operators are take steps to keep customers returning. Several of these stocks are timely in late 1999 and the year 2000, and for the next three to five years, but investors need to be selective.

Mixed sales results and investor caution have been among the factors that have allowed restaurant industry stocks to weaken in 1999, although the industry has benefited from the US economic expansion in the 1990s. Summer promotional advertising has not helped fast-food chains, but the casual dining sector has benefited from menu differences, good service, and consistency and convenience. Most of these stocks are not timely in 1999, but several offer good values for the current year and for the next three to five years, as well.

The continued US economic strength has allowed restaurant industry stocks to become timely during the 2nd qtr of 1999, and gains have been made by several restaurant chains. The number of restaurant locations in relation to demand is a problem for the industry, but customers have been responsive to innovations and lifestyle changes are having an impact on restaurants, as well. These stocks are timely in 1999, and investors will also find several issues with long-term appeal.

Restaurant industry stocks have had a mixed performance during the 1st qtr of 1999 with roughly an equal amount of declines and advances during the period. Overexpansion in the industry and a severe winter in 1999 have combined to make same-store sales weaker than they had been a year earlier, and there extra problems in the industry, as well. These stocks are not as timely as they were in early 1998 and the stronger chains are the best selections for long-term investors.