We may want to rethink filling our dividend portfolios full of juicy steaks, deep-fried onion blossoms and chicken wings. At least in the meantime. That’s because the various restaurant stocks may be in for a world of hurt over the next year or so.
In just a few months, the sector has gone from a market darling reaping huge consumer spending numbers to one that could suffer hard. The fortunes have faded for the group as the outlook has turned dark indeed.
For investors – especially those who were looking at the group’s new and increasing dividend payouts – the restaurant stocks are no longer “buys”. In fact, they could be big-time “sells”.