DRI - Yum Brands Darden and BJ's stand out as top restaurant picks at Wells Fargo

Wells Fargo repositions its ratings on restaurants stocks ahead of the new year. "Coming out of a year unlike any other in modern history for the restaurant industry, we expect chains to benefit from pent-up demand and a consumer who is flush with cash to spend. We think this dynamic sets up particularly well for the casual dining space, with this sub-segment likely to see outsized benefits from independent closures, better in-store operating models (e.g., slimmed down menus), more efficient marketing spend (greater pivot toward digital vs. mass media) and a viable newer long-term sales channel (offpremise). This has us constructive on the space - the most positive on the casual dining space since prior to the great recession... As 2020 taught us, anything is possible (positive & negative), so we plan to stay nimble and on top of any thesis-changing events. In the interim, stay hungry friends!" The firm

For further details see:

Yum Brands, Darden and BJ's stand out as top restaurant picks at Wells Fargo