Feedstuffs:
Moody’s Investors Service has revised its outlook for restaurants from negative to stable, reflecting a belief that fundamentals across the restaurant sector are unlikely to materially erode or improve over the next 12-18 months, according to an announcement.
The negative outlook had been in place since May 2008.
Moody’s senior analyst Bill Fahy said the outlook considers the industry’s recent success in cost cutting in response to weak consumer spending, as well as closing underperforming units, scaling back new restaurant growth and refurbishing existing restaurants to focus on earnings.
Fahy said a key point, though, is that while Moody’s has raised its outlook to steady, industry performance likely will remain very weak as consumers continue to face many pressures, including high unemployment, lower real estate values and a stringent credit environment.