WING - Baird recommends restaurant exposure outlines top picks in busy earnings season

Baird is bullish on a number of restaurant stocks in its roundup of earnings results and previews of those still ahead. Despite a solid earnings result and significant rise in revenue from Restaurant Brands International (QSR) on Tuesday, much of the restaurant sector is falling in afternoon trading. Nonetheless, Baird analyst David Tarantino is advising investors to add positions in many prominent names. “We still believe some exposure to the sector is warranted when considering that many restaurant business models contain attributes that should be considered attractive in the current market backdrop,” he wrote. Tarantino added that durable income from franchised restaurants should serve to protect portfolios while courting less volatility overall than other consumer discretionary sectors. Meanwhile, his team’s surveys were cited as being indicative of improved casual dining trends. The report expects this growth to be resilient to macroeconomic fluctuations as well.  Still, he advised that investors remain

For further details see:

Baird recommends restaurant exposure, outlines top picks in busy earnings season