Restaurant Revival?
When the demise of the casual diner space chatter is incessant, sometimes it pays to look for some possible green shoots. As Mark Twain once said, “when you find yourself on the side of the majority, it is time to pause and reflect.” Of course there was some bombshell news with MCD today, but some stocks like a WING PZZA or CMG have been holding up relatively well. If we dig down deeper into some of the periphery plays for clues, the chart below of an under followed name that supplies the restaurant industry in MIDD, gives reason for hope. From an earnings standpoint it has produced three consecutive strong reactions since the virus hit, with advances of 16.3, 8 and 7.9% on 8/5, 5/7 and 2/26. It is at a critical spot now at the very round par number, which was support dating back to early 2016. Bulls do not want to see this level become resistance. When the news seems to be dour all the time, think of new entrepreneurs with innovative ideas, not only potentially within the dining group, but outside as well.