Shake Shack (SHAK) shares were down 1.19% to $52.52 in late-morning trading on Thursday, and the restaurant industry is the subject of an in-depth chart analysis.
With the recent success of IPO's by fast-food restaurants Shake Shack and Wingstop (WING), the industry has seen an increase in seemingly viable competition to traditional powerhouses like McDonald's (MCD).
TheStreet chartist Bruce Kamich says that "the hungry consumer has helped to propel many restaurant stocks higher, but now investors need to be more selective as weakening technicals tell us to be more selective in our choices."
With that in mind, here is a look at the charts of some of the most talked about restaurants in the sector.
Denny's (DENN) shares were down 1.65% to $12.23 in morning trading on Thursday. The casual-dining chain met analysts' second-quarter earnings expectations of $0.11 per share earlier this month when it reported its results. Revenue of $123.3 million grew 7.3% over the year-ago period, topping analysts' $120.28 million expectations.
Denny's chart shows that the stock remains in an uptrend with its upward sloping 200-day moving averages.
Source: Big Charts
Red Robin Gourmet Burgers (RRGB) shares were down 1.7% to $81.70 in morning trading. The Greenwood Village, Colo., company recently reported mixed second-quarter financials, earning $0.78 per share and topping analysts' $0.76 per share expectations. While revenue climbed 14.4% year over year to $293 million, analysts were expecting the company to report revenue of $299 million.
Red Robin's chart shows that the company has broken below its 200-day moving average, according to Kamich.
Source: Big Charts
Cheesecake Factory's (CAKE) shares were down 0.63% to $55.63 in morning trading. Real Money's Timothy Collins recently commented on the company in a recent blog. Here is some of what Collins had to say:
"For instance, on CAKE, after a strong gap higher after earnings, the stock has faded over the last few days. This pullback has created a small bull flag here. The stock would only need a close over $56.30 to set up a quick test of $58 even in this market."
Kamich notes that company's chart shows that it remains in an uptrend with an upward sloping 200-day moving average.
Source: Big Charts
Action Alerts OPTIONS' Michael Khouw recently commented on Shake Shack's valuation saying, "So what is the takeaway here? If you are inclined to purchase the stock, the valuation is a bit heady here and perhaps you should wait until the supply and demand for those that would sell the stock has normalized."
Kamich notes that Shake Shack is below its 100-day moving average and "a break of nearby chart support around $49 is likely to precipitate further losses."
Source: Big Charts
Carrols Restaurant Group (TAST) shares were down 3.19% to $12.41 in morning trading, two weeks after the Syracuse, N.Y.-based restaurant reported a second-quarter net loss of $0.14 per share on revenue of $219.1 million. Analysts on average were expecting the company to report a net loss of $0.02 per share on revenue of $211.24 million.
Kamich notes that the company's stock remains in an uptrend with an upward sloping 200-day moving average.
Source: Big Charts
Wendy's (WEN) shares were down 2.33% to $9.43 per share earlier in today's session. The company recently released its second-quarter results, reporting earnings of $0.08 per share on revenue of $489.53 million. Analysts on average were expecting the company to report EPS of $0.09 on revenue of $489.5 million.
Kamich notes that the company's chart shows that the stock has broken below its 200-day moving average.
Source: Big Charts
-- By Tony Owusu and Bruce Kamich
