3 Overpriced Restaurant Stocks to Sell

Restaurants stocks like DNKN, PZZA and EAT stock are hitting all-time highs -- and now look far too pricey

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3 Overpriced Restaurant Stocks to Sell

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.

burger king 185 3 Overpriced Restaurant Stocks to SellFrigid 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.

Sure, chains that cater to customers with more disposable income are on a tear, such as Starbucks (SBUX) or Chipotle Mexican Grill (CMG), but beyond that, it’s a mixed bag.

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:


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/dnkn-pzza-eat-stock/.

©2014 InvestorPlace Media, LLC

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