To-Go Baby Back Ribs Boost Casual Dining Outlook By

© Reuters.

By Christiana Sciaudone — At-home baby back ribs are here to stay.

Morgan Stanley (NYSE:) named Brinker International Inc (NYSE:), owner of Chili’s, among the biggest casual dining beneficiaries of the continued to-go habit we picked up over the past year. Analyst John Glass raised the price target on Brinker to $64 from $60. He also boosted Texas Roadhouse Inc (NASDAQ:) to $90 from $87 and Bloomin Brands Inc (NASDAQ:) to $28 from $25.

The analyst also likes Olive Garden owner Darden Restaurants Inc (NYSE:), but declined to mess with its price target.

Brinker rose 5.5%, Bloomin’ Brands 2.9% and Darden almost 2% in trading Friday. Texas Roadhouse was little changed.

To-go sales at full service restaurants (pickup and delivery) grew two to three times during the pandemic with dining rooms closed or restricted, Morgan Stanley said. Off premise eating has risen on average from 10% to 15% pre-Covid to 20% to 40% as a percent of sales as of the fourth quarter.

Darden is expected to also have a better dine-in business post-Covid, on top of continued strong to-go sales. over the past 12 months as profit and sales have steadily recovered since the quarter ended May 2020. Brinker, meanwhile, is up more than 560% in that time.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link