Oversaturation Is Killing Restaurant Stocks
2017 has been a banner year for stocks. The S&P 500 is up more than 15%, and the Dow Jones Industrials and the Nasdaq have climbed even faster. However, one industry has been left out in the cold: restaurants.
Restaurant stocks, especially fast-casual and casual-dining companies, have largely underperformed the market as they wrestle with a number of challenges. Labor costs are rising, mall traffic is falling, and food deflation had made prices lower at supermarkets; but the biggest problem for the industry appears to be oversaturation.
Restaurants are seeing more empty tables. Image source: Getty Images.
Source: Fool.com
McDonalds Corp. Stock
€232.95
0.430%
The stock is one of the favorites of our community with 60 Buy predictions and 1 Sell predictions.
As a result the target price of 292 € shows a positive potential of 25.35% compared to the current price of 232.95 € for McDonalds Corp..
