For Immediate Release
Chicago, IL – October 9, 2012 – Today, Zacks Equity Research discusses the U.S. Restaurants, including Denny's Corp. (DENN), Carrols Restaurant Group, Inc (TAST), Starbucks Corporation (SBUX), McDonald's Corp. (MCD) and Yum! Brands (YUM).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
The restaurant industry is one of the major contributors to job growth in the U.S. In 2011, total U.S. employment grew 1.0% while restaurant employment increased 1.9%. According to the National Restaurant Association, overall restaurant industry employment will reach 12.9 million in 2012, accounting for 10% of the total U.S. workforce.
This projected employment figure represents year-over-year growth of 2.3%, while total U.S. employment is believed to grow 1.3%. Texas and Florida are envisioned to see maximum job growth, among all other markets in the restaurant industry, over the next 10 years.
Global Unit Expansion
Putting behind the economic downturn that paralyzed the U.S. economy a couple of years back, most companies in the sector are accelerating their pace of restaurant openings. A relative recovery in consumer spending has also encouraged companies to return to unit expansion.
Besides spreading their wings in the home country, the companies also aim to test waters in foreign shores. Restaurateurs are primarily concentrating on emerging markets that provide ample opportunities for expansion. The burgeoning middle income population in emerging countries encourages the companies to shift their spotlight from the somewhat saturated domestic market.
Several food chains, including Denny's Corp. (DENN), Carrols Restaurant Group, Inc (TAST) and Starbucks Corporation (SBUX) are eyeing to tap the fast-growing Indian market. McDonald's Corp. (MCD) and Yum! Brands (YUM) already have considerable coverage in India. They are aggressively expanding in China to capitalize on the fast-paced economic growth there. Latin American countries are also not far behind.
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