If restaurant stocks hold up at current levels, I assume it's because people believe sales will hold or improve (if I assume it's not about future consolidation in the sector, or that commodity prices are falling such that if rev's decline, costs decline faster, so there's still good restaurant profits). Well if it is sales, then SYY is still attractive imo. As the biggest purveyor or food and stuff to restaurants, it would have to benefit. Selling at p/e 12 now, often above 20x in better economic times, high roe, rising div's past more than 35 years, yield now about 4.4% - I am holding my shares.
-g- Of course if somebody prefers to buy stocks based on their gut feeling and gut stomach (where they go to eat) and so just sees what they look at on the surface or follows stock price uptrends, it's possibly not a stock of interest. |
