People will cut back on eating out.Really bad time to be long any restaurant stock.
A few points.During the last four years of economic turmoil, CAKE's same store sales have increased.CAKE locks in food prices with long term contracts. While they are not immune from increases in food costs, this risk is mitigated.Refusing to not sell calls is neither dumb nor emotional.Good luck.
I moved my money into GMCR and it turned out (scary but) good.I tend to monitor my old positions for the purpose checking on my calls.The fact that "some" people will choose dining over a vacation is of no significance.1. CAKE makes a lot of money from tourists/vacationers, so a wash if vacations are cut (dining locally vs dining while on vacation)2. Increase food costs will eat into the bottom-lineAs far as not selling CALLs, that's just dumb and emotional.Anyway, I plan on coming back and shorting all restaurant stocks after I take profit on GMCR next week.
Lets see....you were completely wrong about CAKE price action. Get something right and we might listen.How about this....CAKE will be 36+ before your 'recession'.
My call on the price action is just delayed.How could I have predicted the irrational exuberance from the "Fed hope"?We are no longer trading on earnings, nor sales, nor growth, but "hope".Tell tell signs of a bubble on life support.