Despite lackluster stock performance last year, restaurant companies had a banner year in terms of strong fundamentals and should continue to excel through 2000, providing investors with significant opportunity, according to Stacy Jamar, senior restaurant analyst for Banc of America Securities. Jamar made her remarks during a luncheon presentation at Banc of America Securities 17th Annual Hospitality Conference that has attracted 53 companies from across the nation and more than 400 institutional investors and company representatives. The Conference, featuring presentations and panel discussions geared around the premier growth companies in the lodging, lodging REIT, timeshare, ski resort, cruise line, auto rental, gaming and restaurant industries, started Monday, January 24th and will run through Friday, January 28th at the Pierre Hotel. Jamar attributes this disparity between fundamentals and stock performance to investors and consumers belief that a precipitous drop in performance is just around the corner. Consumers and investors alike have several pre-conceived notions about restaurant food quality, service and flexibility and they hold restaurants to very high standards.
Consumers have great expectations for restaurant companies.
We believe that restaurants generally excel on a daily basis in the face of seemingly insurmountable execution challenges. Jamar noted that restaurant spending has truly become a fixture of American life. This frequency with which consumers dine out has led to continually increasing customer expectations. Restaurants are constantly trying to figure out how to please ever more finicky eaters. Despite the high standards to which restaurants are held, Jamar is encouraged by the fact that consumers are spending more freely, the economy is expected to remain strong and restaurant sales growth should continue with it.