Yesterday saw volume in restaurant stocks dry up despite an increase in volume across the broader market.
With consumer discretionary (XLY) down on strong volume yesterday, it is no surprise to see a lot of declines in yesterday’s session for restaurant stocks. Quick service restaurants did not show significant strength, with PNRA’s +0.4% move for the day the largest move to the upside. Volume was sharply down in all but two stocks, suggesting a lack of conviction in the decline.
The casual dining category had more bright spots; MSSR, RUTH, and CPKI rose on strong volume. On average, volume in the category was down 29% versus the 30-day average. BWLD, LNY, and KONA all declined sharply on weak volume. Commodities, other than dairy, declined yesterday.