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Be Cautious of Restaurant Stocks Like Darden as Input Prices Rise

Input prices are taking a cue from the move in food and gas prices. RealMoney Pro contributor Chris Versace breaks down how much potential there is for more widespread inflation after the May ISM manufacturing index rose more than expected to 56.3% in May from 55.2% in April. As companies like Chipotle and McDonald's have announced price increases, Versace explains how likely it is that other companies will follow suit and what that means for investors in casual restaurant stocks. Versace says companies like Darden and Bloomin' Brands stand the potential to suffer this summer and it will be important for investors to garner more from the upcoming Consumer Price Index and Producer Price Index data.