Chain restaurants: Seeking Alpha Analysts vs. Wall Street

Seeking Alpha News (Fri, 04-Apr 8:55 AM)

 

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Major chain restaurants are bracing for the disruption that the newly announced tariffs would cause their businesses. 

The industry's biggest concern pertains to the hike in food and packaging costs along with the uncertainty of sourcing ingredients to support customer demand. 

In this environment, Wall Street analysts have appeared to be more favorable toward these stocks than Seeking Alpha analysts. Chipotle Mexican Grill (NYSE:CMG) carried the highest number of Strong Buy recommendations. 

The Cheesecake Factory (NASDAQ:CAKE), Wendy's (NASDAQ:WEN) and Darden Restaurants (NYSE:DRI), which owns Olive Garden and LongHorn Steakhouse featured a wide range of opinions. 

SA analysts and the sell-side saw opinions match on Restaurant Brands International (NYSE:QSR), which owns chains like Burger King and Tim Horton’s, and Yum China Holdings (NYSE:YUMC) and Yum! (NYSE:YUM), which owns KFC, Pizza Hut, and Taco Bell. 

Conversely, McDonald's (NYSE:MCD) and Domino's Pizza (NASDAQ:DPZ) got a bullish tilt from Wall Street, while SA analysts remained cautious.