Yesterday was a strong day for most restaurant stocks. However, there was some telling weakness on my screen.
The quick service category rose an average of 1.5% yesterday, with GMCR, THI, CMG, and PNRA gaining on strong volume. Overall, volume declined an average of 25% versus the 30-day average. The casual dining category gained an average of 2.7%, with CAKE, CPKI, DIN, and EAT all seeing their stock rise on strong volume.
Notable as the only stock to decline on strong volume was BWLD. In my recent post, “RESTAURANT SIGMAS – WHERE TO NEXT? DEEP HOLE OR NIRVANA”, I outlined some of the issues facing BWLD. April comps were not encouraging and new unit volumes are declining due to the company’s real estate issue having grown too fast over the last few years.
In addition, I decided to stop at BWLD last night to take advantage of the 50 cent wings. After eating said wings, I think 50 cents is too expensive! Judging by the low volume of customers in the restaurant, I think many people out there agree with me.