A Wall Street Transcript Interview with Nick Setyan, an Equity Analyst Covering Restaurant Stocks at Wedbush Securities: Quick Casual Restaurants Garner Market Share from QSR and Casual Dining

Wall Street Transcript

67 WALL STREET, New York - March 14, 2014 - The Wall Street Transcript has just published its Restaurants Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Emerging Market Expansion - Store Sales Growth Trends - Cautious Consumer Spending - Restaurant Trends in China - Value for Consumers - Quick Casual Restaurant Growth

Companies include: Chipotle Mexican Grill, Inc. (CMG), Panera Bread Co. (PNRA), Buffalo Wild Wings Inc. (BWLD), BJ's Restaurants Inc. (BJRI), Darden Restaurants Inc. (DRI), Jack in the Box Inc. (JACK), Wendy's/Arby's Group, Inc. (WEN), McDonald's Corp. (MCD), Sonic Corp. (SONC), Ruth's Hospitality Group Inc. (RUTH), Kona Grill Inc. (KONA), Yum! Brands Inc. (YUM)

In the following excerpt from the Restaurants Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Tell us broadly about your coverage in the restaurant space.

Mr. Setyan: I cover the full range of the restaurant sector, and there are about 30 or so publicly traded restaurants that are of institutional importance. Out of that 30, I have chosen to cover names where I believe I can add some value, whether it's because of geography or that I believe there are data points I can add that others are not necessarily adding. The important factor in selecting my coverage list is finding those names where I can add some new analysis.

Within quick casual, I cover both large caps and small caps. I cover the Chipotles (CMG) and the Paneras (PNRA), and also FRGI (FRGI) or Noodles (NDLS), which are smaller cap. In the casual dining space my coverage includes Buffalo Wild Wings (BWLD), BJRI (BJRI), Chuy's (CHUY). I don't cover the Dardens (DRI) of the world in casual dining. In terms of QSR, I cover Jack in the Box (JACK), Wendy's (WEN) and Popeye's Louisiana Kitchen (PLKI). I don't cover McDonald's (MCD), because I believe that is incredibly well-covered by a large number of analysts.

TWST: Are the major trends you are seeing broadly in the restaurant space closely tied to what is happening in the larger economy?

Mr. Setyan: Yes, the larger economy absolutely plays a big role. The bottom line is that relative value is what is driving the performance in terms of each of the restaurants. That $8 to $12 average check is what I call the sweet spot within restaurants...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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