Wednesday, December 6, 2006

Casual Dining and LBOs

LBOs are all the rage of late, so we've been paying attention to what the analyst crowd has been guessing about potential candidates. This morning Gold-mine Sachs says these names are suitable candidates for potential leveraged buyouts in the world of casual dining: Brinker (EAT - operators of Chili's and Romano's Macaroni Grill); Wendys (WEN); Applebees (APPB) and Darden (DRI - operator of Red Lobster and Olive Garden). Each of these stocks is a fraction lower today. The Goldman comments do not mean any deals are about to occur or will ever occur, just something to keep in mind.

As a side note: Yum Brands (YUM), owners of the Taco Bell chain, are going to stop using green onions in their food products at their more than 5,000 restaurants since it appears the tasty little critters were the mode of transport for another e-coli outbreak in the NY metro area.

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