5 Reasons To Be Excited About Restaurant Stocks - cheap gas grills

If you have been following my article, you may have noticed that I am particularly interested in restaurant stocks.The temptation to come up with a business that can replicate across the country and possibly replicate around the world has attracted me.I currently own Denny (Nasdaq: DENN), Ignite Restaurant Group (Nasdaq: IRG), Kona Grill (OTC: KONA) and I am bullish and considering Dave (Nasdaq: Dave) with a well-known position) and Jack in the box (Nasdaq: Jack ).Here are five reasons to be excited about the industry and how these people are affected.1.In tough times, the first place consumers cut their spending was restaurant consumption.Let's face it;Overall, this is a half.Luxury spending from the easiest cuts in the budget.In addition to that, the psychological effects of getting on the bus and driving, even locally, many consumers are just burned down by the idea of burning more expensive gases.According to a report from the National Restaurant Association, "The Restaurant Performance Index showed strong growth in October, largely due to the fall in natural gas prices.The index for October was 2.An increase of 1% compared to September, as the entire 71% of restaurants reported the same situation --Store sales rose that month, compared with only 63% in August.35% of restaurant operators now expect an improvement in economic conditions over the next six months, compared with only 20% in the previous month.I can see that DENN and JACK particularly benefit from cheaper gas prices as their average checks are lower than others mentioned in this article.For people with lower incomes, gas costs account for a higher proportion of their disposal revenue budget.IRG's Brick House Tavern leaders, BWLD and KONA may also have a special boost to their strong bar business, when you have a few extra dollars in your pocket, going out for a drink after work can be more attractive.2.Another problem that bothers restaurants is the sudden surge in food costs.Beef inflation remains a problem, but partly because cheese, chicken and pork have risen by an average of 20% over the past two years.This makes it difficult for restaurants to make decisions to reduce profits or increase prices, possibly at the expense of sales.Relief, however, is obvious.Falling corn prices mean a drop in feed prices, and many food costs are expected to fall again.For example, pig prices are expected to fall by 14.5% next year.This should be a special relief for DAVE investors as the company sells ribs exclusively.Cheap chicken will of course help BWLD a lot, cheap cheese should help all restaurants, especially Jack with fast foodMexican barbecue chain.3.The living space of FittestThe restaurant has been particularly difficult in the past few years and more difficult than usual.Many moms and pop chains have closed, while others, such as Ruby Tuesday, have closed many of their places.Restaurants on hold are forced to cut costs, innovate, use technology and learn to be lean machines.These efforts should pay off if the restaurant space is restored.As mentioned in an article in National restaurant news, turnover restaurants DENN and IRG must have gone through trials and tribulations in order to regain their footing.Kona has been perfecting his ideas for many years and is now in a stage of rapid growth.In the same process that DAVE went through with KONA, it is expected that the site selection will start at least next year and will enter a rapid growth model.Jack's Qdoba Mexican Grill has a similar story because it feels like it finally has a viable concept and a simplified strategy.On the other hand, BWLD has never stopped succeeding in the past few years, but it is ready to take what it has learned and go international.4.The weather outside is not so terrible. Do you remember the snowstorm one after another last winter?They said it was the worst we 've seen in decades.It's quite possible that it won't repeat with the closed restaurant, which is not possible --to-Travel roads, even heating restaurants, cleaning up parking lots and getting more energy and labor costs --Delivery is required.A year ago, many chain stores cried because of the weather, which should have made this game easier.IRG was particularly hit because there were so many Joe's Crab sheds in the northeast.5.Get numbers between booking a table, browsing a menu, ordering and paying a check, and the digital amenities at the restaurant will be accelerated in 2015.Coincidentally or not, I remember that in the companies on this list, there was little chatter in terms of digital effort, except for the BWLD.One hundred BWLD.According to the recent conference call, it expects almost all companiesLocation with desktop and 75% restaurant system.Soon there will be wings and a pint of beer.In the list, DENN, IRG, and KONA are obviously my favorites as I currently own them, but I'm sure BWLD, DAVE, and JACK will get higher.These six concepts show a very bright future, and the five factors listed in this article can help them further develop.Even those who have not yet fully accepted the numbers, I believe they will be at a different level anyway.Disclosure: The author is long DENN of kona irg.The author wrote this article himself and expressed his views.The author was not compensated (except for Seeking Alpha ).The author has no business relationship with any company mentioned in this article.