In the wake of rallying to new, long-term highs - 52-week highs
in one instance - restaurant stocks are among those that have begun
to experience potentially significant profit-taking.
) have closed lower for three days in a row after pulling back by
more than 1% in Friday's session. The selling in the stock comes
after a four-day rally in DRI that took the stock its highest
levels since the summer of 2011.
Darden has only been trading above its 200-day moving average
since the beginning of the month, making the stock's current
retreat its first since returning to bull market territory. Now
technically oversold, Darden Restaurants has earned "consider
buying" ratings of 8 out of 10 as of midday on Friday, and a
, in the short-term of more than one percent.
With a positive edge of more than 1%, shares of
) have traded lower for four days in a row as of end of day on
Friday, when stocks sold off by more than 1%. The stock has
finished in oversold territory for the past two consecutive
sessions, and is trading at new, short-term lows.
EAT has short-term ratings of 7 out of 10, which puts the stock
in our "neutral" category. Additional selling in EAT early next
week could easily give Brinker International the boost it needs to
reach "consider buying" status, one-point higher.
Down more than 1% ahead of trading on Monday, shares of
Cheesecake Factory Inc.
) were trading at new, 6-month highs as recently as last week.
Profit-taking in the wake of those new highs has helped create
short-term oversold conditions in the stock in recent days, with
CAKE on Friday finishing just inside of technically oversold
That said, shares of Cheesecake Factory has the largest,
short-term edge of any of the restaurant stocks in today's report,
with a positive edge of more than one and a quarter percent, and
"consider buying" ratings
of 8 out of 10.
Be sure to read our latest from
7 Stocks You Need to Know
"Buying the Selling in Weight Watchers"
is Editor in Chief of TradingMarkets.com