Stockholders Lose Faith in Casual Dining and Fast-Food Joints

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Photo: Daniel Maurer

A mixed bag of news coming out of the casual-dining world today: According to Forbes, profits at Sonic were down 17 percent (and revenue down 23 percent) last quarter. The Street points out that while most casual-dining and fast-food chains beat their sales expectations last quarter, their stock prices slipped nonetheless, since investors are growing wary of profits that continue to drop. But theres one exception, at least: Bloomberg reports that McDonalds stock is climbing today after the company announced its profits are up 3.8 percent, slightly higher than expected. (The companys shares had declined 6.2 percent in the past year). It remains to be seen how investors will react to Alain Ducasses assessment of their fries.