The current recession has touched all sectors. The rules of the game have been changed, and nobody is safe. The paradigm is shifting.
One of the consequences of the current state is a new-found appreciation for savings in the U.S. A consumer who does not spend is bad news for the retail sector, and it is bad news for an economy dependent on consumer spending.
The one glimmer of hope comes from the restaurant space. When it became clear that this recession would be long and deep, consumers clamped wallets shut. Dining out in this environment was an easy luxury to cut.
That said, a fascinating aspect of capitalism is the adjustments people make in their habits. On the surface, it is a negative for consumer stocks when spending decreases, but it turns out, it is not disastrous.
For example, restaurants offering discount fare or casual dining have found the current environment to be an opportunity. The consumer may be reducing spending, but he/she still hates to cook.
Yes, dining out is alive and well.
The following are three restaurant stocks worth buying now.
Click on each to learn more:
Restaurant Stock #1: Bob Evans (NASDAQ: BOBE)
Restaurant Stock #2: Darden Restaurants (NYSE: DRI)
Restaurant Stock #3: Landry's Restaurants (NYSE: LNY)
Also see: An extra restaurant stock: Cheesecake Factory (CAKE)
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