• Red Hat (NYSE:RHT) reported fiscal second quarter results of 20 cents a share, compared with Zacks estimates of 11 cents a share, on revenues of $183.6 million, versus estimates of $179.0 million

• Deutsche Bank (NYSE:DB) cut AutoZone (NYSE:AZO) price target to $150 from $175 but maintained its “hold" rating on the stock

• Reports say modifications on the Boeing (NYSE:BA) 787 Dreamliner test plane suggest the first flight is possible by late October or early November

• The corporate head of Microsoft's (NASDAQ:MSFT) Game Studios division ruled out plans to acquire video game publisher Electronics Arts (NASDAQ:ERTS)

• Abbott Laboratories (NYSE:ABT) has offered to buy the drug unit of Belgian's conglomerate Solvay SA

• Deutsche Bank (NYSE:DB) raised its price target for HB Fuller (NYSE:FUL) to $23 from $18, while maintaining its "hold" rating

• Goldman Sachs (NYSE:GS) raised its price target on Buffalo Wild Wings (NASDAQ:BWLD) to $46

• Nintendo lowered its Wii price

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Diversified Restaurant Holdings, Inc., a restaurant management company, announced that the company has signed a letter of intent to purchase nine Buffalo Wild Wings restaurants, which includes six locations in Michigan and three locations in Florida. The company’s Board of Directors approved this agreement at its July 30, 2009 meeting.

Founded in 1982 and headquartered in Minneapolis, Minnesota, Buffalo Wild Wings is an owner, operator and franchisor of neighborhood restaurant / bar style establishments. Over the past 27 years, the concept has established widespread appeal as an inviting, neighborhood destination with more than 600 restaurants in over 40 states nationwide.

T. Michael Ansley, president and chief executive officer of Diversified Restaurant Holdings, Inc, stated, “Over the last two years our company has experienced dramatic growth increasing from $3.4 million in 2007 to $11.6 million in 2008.” He continued, “With this acquisition scheduled for August 1, 2010, we will acquire nine restaurants whose

...

Bites of Opportunity Remain in Overcooked Sector

OVERVIEW

Restaurant stocks have room on the downside

Restaurant stock prices have doubled since their November lows, retested in March. The Zacks Restaurant Index has surged 211% from its 52-week lows, far outpacing both the Russell 2000 (up 63%) and the S&P 500 index (up 48%). The major indexes remain roughly 25% off their 52-week highs.

Valuation multiples have expanded from trough levels and the group now trades at roughly 15 times 2010 earnings. While there are pockets of opportunity in the sector, we think the recovery will be slower than anticipated by the market, weighed down by a consumer sobered by shriveling home values and retirement portfolios and record levels of debt.

Casual dining cooks up positive earnings surprises, but offers no sustenance

Driving the restaurant stock rally, was a slew of better-than-expected earnings reports Ð and upward earnings estimate revisions -- including those by Darden Restaurants (

...

Bites of Opportunity Remain in Overcooked Sector

OVERVIEW

Restaurant stocks have room on the downside

Restaurant stock prices have doubled since their November lows, retested in March. The Zacks Restaurant Index has surged 211% from its 52-week lows, far outpacing both the Russell 2000 (up 63%) and the S&P 500 index (up 48%). The major indexes remain roughly 25% off their 52-week highs.

Valuation multiples have expanded from trough levels and the group now trades at roughly 15 times 2010 earnings. While there are pockets of opportunity in the sector, we think the recovery will be slower than anticipated by the market, weighed down by a consumer sobered by shriveling home values and retirement portfolios and record levels of debt.

Casual dining cooks up positive earnings surprises, but offers no sustenance

Driving the restaurant stock rally, was a slew of better-than-expected earnings reports Ð and upward earnings estimate revisions -- including those by Darden Restaurants (

...

Bites of Opportunity Remain in Overcooked Sector OVERVIEW Restaurant stocks have room on the downside Restaurant stock prices have doubled since their November lows, which were retested in March. The Zacks Restaurant Index has surged 211% from its 52-week lows, far outpacing both the Russell 2000 (up 63%) and the S&P 500 index (up 48%). The major indexes remain roughly 25% off their 52-week highs. Valuation multiples have expanded from trough levels and the group now trades at roughly 15 times 2010 earnings. While there are pockets of opportunity in the sector, we think the recovery will be slower than anticipated by the market, weighed down by a consumer sobered by shriveling home values and retirement portfolios and record levels of debt. Casual dining cooks up positive earnings surprises, but offers no sustenance Driving the restaurant stock rally, was a slew of better-than-expected ...

For Immediate Release

Chicago, IL - July 2, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BJ's Restaurant and Brewery (BJRI), Buffalo Wild Wings (BWLD), Red Robin Gourmet Burgers, Inc (RRGB), California Pizza Kitchen, Inc. (CPKI) and McCormick & Schmick's Seafood Restaurants Inc. (MSSR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday's Analyst Blog:

The Consumer & Casual Dining

We think the restaurant growth stock sector has limited upside and that achieving the high-teens 2010 EPS growth implied by consensus estimates will be challenging. Kitchen and labor scheduling

...

For Immediate Release

Chicago, IL - July 2, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BJ's Restaurant and Brewery (BJRI), Buffalo Wild Wings (BWLD), Red Robin Gourmet Burgers, Inc (RRGB), California Pizza Kitchen, Inc. (CPKI) and McCormick & Schmick's Seafood Restaurants Inc. (MSSR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday's Analyst Blog:

The Consumer & Casual Dining

We think the restaurant growth stock sector has limited upside and that achieving the high-teens 2010 EPS growth implied by consensus estimates will be challenging. Kitchen and labor scheduling

...

For Immediate Release

Chicago, IL - July 2, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BJ's Restaurant and Brewery (BJRI), Buffalo Wild Wings (BWLD), Red Robin Gourmet Burgers, Inc (RRGB), California Pizza Kitchen, Inc. (CPKI) and McCormick & Schmick's Seafood Restaurants Inc. (MSSR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday's Analyst Blog:

The Consumer & Casual Dining

We think the restaurant growth stock sector has limited upside and that achieving the high-teens 2010 EPS growth implied by consensus estimates will be challenging. Kitchen and labor scheduling

...

For Immediate Release

Chicago, IL - July 2, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BJ's Restaurant and Brewery (BJRI), Buffalo Wild Wings (BWLD), Red Robin Gourmet Burgers, Inc (RRGB), California Pizza Kitchen, Inc. (CPKI) and McCormick & Schmick's Seafood Restaurants Inc. (MSSR).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday's Analyst Blog:

The Consumer & Casual Dining

We think the restaurant growth stock sector has limited upside and that achieving the high-teens 2010 EPS growth implied by consensus estimates will be challenging. Kitchen and labor scheduling

...

Earnings continue to please the market. You can go right down the list: Microsoft, Ford, span class="blsp-spelling-error" id="SPELLING_ERROR_0"Schlumberger/span, etc. For people that follow the markets closely, it is frustrating. The market is taking any kind of news good or bad, and putting a positive spin on it. To me, it has a feel that its gone too far, but I know better than to think it can't go further. Personally, I like to wait until periods where I feel comfortable with the market action before I commit more than average capital. br /br /I helped Trader Mark a href="http://www.fundmymutualfund.com/2009/04/americas-hottest-sector-casual-dining.html"write a synopsis of the casual restaurants/a and their earnings yesterday. These companies, such as PF Chang's, Buffalo Wild Wing's, and Famous span class="blsp-spelling-error" id="SPELLING_ERROR_1"Daves/span, are performing well (on a relative basis). The past quarter, they have been restructuring to cut costs. This involves ...