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Consumer Losing Their Appetite For Eating Out?

CBRL, MCD

Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL) shares are trading lower by $10 (6.6 percent) at $142.03. The catalyst for the decline is a Q4 miss and guidance cut. The issue is now $26 from its all-time-high ($169.64) made in June.

The casual restaurant operator isn't the only one in the sector undergoing some tough times.

Look no further than Bob Evans Farms Inc (NASDAQ: BOBE), which is changing hands at $38.08 in Wednesday's session. That is considerably off its yearly-high of $48.24 made in April and well off its all-time-high of $60.15 made in March 2015. It should be noted that the issue did get a nice pop off its $0.04 Q1 beat, but has now relinquished all off its gains accrued from the report.

Another widely-followed issue in the restaurant sector, but more of the fast food arena that has been selling pressure as of late, is McDonald's Corporation (NYSE: MCD). The Wall Street darling from earlier in the year has put in a dismal relative performance since early May.

As the broad market has rebounded from Brexit lows, the issue is now trading below its low from from June 27 of $116.08 at $115.43. That's over $16 from its all-time-high made in May at $131.96.

It's also dangerously close to breaching its major support at the $114 area, which has been prevented the issue to sliding to the $110 area that acted as support in mid-November.



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