An analyst said today that she prefers stocks of companies such as Panera Bread Co., The Cheesecake Factory, P.F. Chang’s China Bistro and Starbucks Corp. — all of which have Connecticut locations — because they are benefiting from a strengthening upper-middle-class consumer.
Most restaurant stocks have risen this year on better-than-expected earnings, but the next leg up “will likely need to stem from improved sales trends,” William Blair & Co. analyst Sharon Zackfia wrote in a note to clients.
“We prefer to invest on a trend that is already in evidence – a strengthening upper-middle-class consumer (likely the result of an improved stock market),” Zackfia said.
Zackfia also thinks The Cheesecake Factory Inc., which has a restaurant in West Hartford’s Blue Back Square, and P.F. Chang’s, which operates in Westfarms Mall, could fare well during the holidays since both companies tend to have restaurants located in upscale shopping malls. (AP)
