The Nation's Restaurant News Restaurant Stock Index rose 22.6 percent in 2011, beating a 2.5-percent increase from the Dow Jones Industrial Average and decreases from the Nasdaq composite and the Standard & Poor's 500, both of which fell about 3 percent through Dec. 16.
Leading the way in the NRN Index, which is weighted by market capitalization and accounts for all publicly traded restaurant stocks, were gainers like Pizza Inn Inc., Domino's Pizza Inc. and Chipotle Mexican Grill Inc.
According to research from securities analyst Larry Miller at RBC Capital Markets, who polls insitutional investors each month, the restaurant sector was a bullish pick for many investors in 2011. Only in four months — June, September, October and November — did investors turn bearish on restaurants stocks, according to his research. In December, positive institutional investor sentiment rose to the third-highest level of the 2011.
"The majority of investors — 79 percent — see the consumer in reasonable shape," Miller said in a research note, "as 47 percent believe the consumer is troubled but improving, and 32 percent think they are in better shape than believed."
NRN Restaurant Stock Index best and worst performers of 2011
| 2011 largest stock gainers | ||
|---|---|---|
| Company | Percent change | Closing price |
| Pizza Inn Inc. | 185.6 | $5.57 |
| Domino's Pizza Inc. | 108.8 | $33.30 |
| Chipotle Mexican Grill Inc. | 49.7 | $318.40 |
| Carrols Restaurant Group Inc. | 49.1 | $11.06 |
| Peet's Coffee & Tea Inc. | 43.7 | $59.97 |
| Buffalo Wild Wings Inc. | 41.1 | $61.88 |
| Kona Grill Inc. | 41.0 | $5.78 |
| Starbucks Corp. | 35.3 | $43.48 |
| Caribou Coffee Co. | 34.7 | $13.58 |
| Panera Bread Co. | 33.8 | $135.44 |
| 2011 largest stock decliners | ||
|---|---|---|
| Company | Percent change | Closing price |
| Ruby Tuesday Inc. | -48.9 | $6.68 |
| Jamba Inc. | -42.7 | $1.30 |
| P.F. Chang's China Bistro Inc. | -38.5 | $29.81 |
| Sonic Corp. | -33.7 | $6.71 |
| O'Charley's Restaurants Inc. | -27.2 | $5.24 |
| Luby's Inc. | -27.0 | $4.58 |
| Famous Dave's of America Inc. | -21.3 | $8.78 |
| Granite City Food & Brewery Inc. | -18.8 | $1.95 |
| Texas Roadhouse Inc. | -17.2 | $14.21 |
| DineEquity Inc. | -13.7 | $42.62 |
Note: Percent change reflects stock price changes from Dec. 31, 2010 through Dec. 16, 2011. Stocks must have started and finished trading above $1.00.
Contact Sarah Lockyer at sarah.lockyer@penton.com.
Follow her on Twitter: @slockyerNRN