Restaurant stock #3: Landry's Restaurants (LNY)

Posted Jun 21st 2009 11:00AM by Louis Navellier
Filed under: Stocks to Buy

Restaurant stock #3: Landry's Restaurants (LNY) Like Darden, Landry's Restaurants (NYSE: LNY) is a large, diversified player in the casual dining segment.

One significant difference is its participation in the casino space with the Golden Nugget. The acquisition of Golden Nugget has not resulted in much benefit for the company as of yet. In fact, the deal increased LNY's debt level, which now stands near $1 billion.

LNY's stock dropped hard after trading for some time at the $30 level. At the bottom, one could buy shares at $3.60 per share.

The stock has recovered nicely, but still trades at $10 per share. A return to $30 is more than possible. That is especially true with a stronger economy.

I rate LNY a B or Buy.

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Tags: Landrys Restaurants, LNY, restaurant stocks, stocks to buy, top stocks