Company News

BUZZ-MS: Casual dining outlets hit in Q3, fast-food chains insulated

** Morgan Stanley says weakening same-store sales, hurricanes and persistent labor costs in Q3 weighed on casual dining chains, including Bloomin’ Brands and Buffalo Wild Wings

** Quick-service chains such as McDonald’s, Burger King-owner Restaurant Brands’ and Pizza Hut-owner Yum Brands likely to post solid sales gains due to insulation from franchised model

** Regional and more macro-sensitive quick-service brands such as Starbucks and Chipotle Mexican Grill are likely to be weaker, analyst John Glass writes in a preview note

** Cuts PTs on Chipotle, Buffalo Wild Wings and Shake Shack Inc, raises PT on Restaurant Brands

** In 2017, S&P Composite 1500 Restaurants index up 14.5 pct, largely in line with the 14 pct gain by the S&P 500 (Reporting by Sruthi Ramakrishnan in Bengaluru)