Restaurants Rise On Business Optimism
January 05, 2010 5:21 PM
High-end restaurants may be poised to rise in 2010 after an analyst boosted ratings on the group.
Piper Jaffray analyst Nicole Miller Regan raised her ratings on Ruth's Hospitality Group (NASDAQ: RUTH), McCormick & Schmick's Seafood Restaurant (NASDAQ: MSSR) and Morton's Restaurant Group (NYSE: MRT), saying the trio is poised for better sales as business travel picks up.
Regan cited improved business at luxury hotels as an early indicator that corporations were loosening the purse strings on business travel and expenses. This should spell good news for the hard-hit fine dining segment, which is heavily reliant on corporate spending. Regan boosted McCormick & Schmick's to "Overweight" from "Underweight" while raising Morton's to "Neutral" from "Underweight". She upgraded Ruth's to "Neutral" from "Underweight".
