Company News

BUZZ-Restaurant stocks lose appetite

    ** U.S. restaurant stocks fall between 5% and 30% as broader
market sheds on coronavirus scare
    ** Fast-food chains McDonald's, Starbucks,
Yum Brands and Burger King owner Restaurant Brands
 fall more than 10%
    ** Stocks of fast-casual chains Cheesecake Factory,
Bloomin' Brands, Red Robin and Brinker
among worst hit, down more than 30% 
    ** Six-member S&P 500 Restaurants index dips
11.8% to its worst day ever
    ** Analysts at brokerage Evercore estimate same-store sales
at full-service U.S. restaurants to fall 30% in April, more than
the expected fall in March, May and June sales
    ** Evercore expects full-service domestic chains Brinker
International, Darden Restaurants and Texas
Roadhouse to bear the major brunt of the impact from 
"social distancing" due to coronavirus
    ** "It has gotten bad for full service, and will likely get
even worse" - brokerage
    ** Impact on Chipotle and Starbucks likely
to be half that on EAT, DRI and TXRH, while quick-service
domestic chains, including McDonald's and Wendy's, to face
one-third of the impact - analyst David Palmer
    ** Brokerage cuts PT on restaurants citing increased risk
from sustained global economic impairment and increased
government regulation as a result of the upcoming election cycle
    Company        RIC      Evercore's    Previous
                            current PT       PT
   Chipotle       CMG.N        $880         $980
    Dunkin'       DNKN.O        $73         $77
    Darden        DRI.N        $110         $130
    Brinker       EAT.N         $41         $48
  McDonald's      MCD.N        $220         $230
  Restaurant      QSR.N         $70         $74
   Starbucks      SBUX.O        $79         $88
     Texas        TXRH.O        $59         $70
    Wendy's       WEN.O         $21         $22
  Yum! Brands     YUM.N        $115         $121
    ** Evercore, however, picks DRI, TXRH and CMG as favorites
to gain from a recovery
    ** Brokerages Guggenheim and Stifel had already cut PTs on

 (Reporting by Praveen Paramasivam in Bengaluru)