The bitter cold hitting so much of the country has only added insult to injury in the restaurant industry … and yet, a number of restaurant stocks have busted that trend to hit all-time highs.
Frigid temps have more people hunkering down at home at a time when restaurants are still trying to get out from under the weak economic recovery. As we noted recently, restaurant chains that cater to average and lower-income consumers have been struggling to get sales. McDonald’s (MCD), for example, has been in a years-long funk, while Darden Restaurants (DRI) is having a hard time luring patrons to Red Lobster and Olive Garden.
So it comes as something of a surprise to find restaurant stocks in sprawling and hardly upscale chains hitting all-time highs this week. From donuts to pizza, here are three restaurant stocks notching personal bests — with dangerously stretched valuations: