Morgan Keegan Comments On The State Of The Restaurant Industry (CMG)

Morgan Keegan released a research report this morning commenting on the state of the restaurant industry.

"With the Q4 earnings season completed and 2011 off to a relatively solid (if not snowy) start, we remain optimistic that industry sales trends will continue to show positive momentum driven by improving traffic trends, modest menu pricing, and a gradual resumption in new restaurant growth," Morgan Keegan writes. "Our confidence is supported by 1) the recent favorable Q4 earnings results as over 85% of 34 restaurant companies beat/met expectations; 2) a modestly improving US jobs picture with unemployment trends drifting lower; and 3) an increasingly optimistic outlook supported by both consumers and restaurant operators."

Morgan Keegan later noted the strongest revenue growth in Q4 was posted by Chipotle Mexican Grill Inc CMG, which also posted the strongest SSS, up 12.6%.