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Restaurant industry stocks appear to be lackluster for most investors in the late 1990s with unpredictable commodity costs, upward labor cost pressures, and competition in every industry segment. Investors need to evaluate these stocks on an individual basis regardless of what the industry looks like as a whole. In addition, demographic and econometric models, such as two-income families, will have impacts on the industry in the future, as well.

The prospects for the restaurant industry in 1998 and later is not good when conventional measures are used on a macro-level industry-wide. However, when individual equities within the industry are evaluated the timeliness of many of these stocks appears to be better. Many individual companies, along with food processors, have been taking advantage of economic and social trends in the US, and investors may find some timely stocks on this basis.

Home meal replacement is the latest version of take out that restaurants are offering. It is too new a concept to discern whether it will be successful. There seems to be too high a supply of restaurants in relation to the demand. The abundance of single person households, the lack of time and the different schedules and food habits of families have caused restaurants to offer consumers an alternative to cooking their own meals. Each restaurant must be reviewed to discern whether it is a good investment.

The restaurant industry has become oversupplied with locations during the 1990s in almost every segment, even though demand has increased and is likely to do so in the future. There are also many individual restaurant concepts which can become successful with operational efficiency and good marketing management. There are several stocks in this industry that have potential, and investors need to seek those which are the most timely.

The restaurant industry may prove a wise investment decision as more people get busier and eat meals prepared by restaurants. The home-meal-replacement market is becoming a popular trend for several restaurants to follow. The concern at several restaurants, such as McDonald's and Boston Chicken, is the decrease in the quality of the meals.

Restaurant industry share prices increased in the 2nd qtr of 1996 after good 1st qtr 1996 earnings. Restaurant chains will be affected by the minimum wage increase under consideration by Congress in 1996, but will be able to pass this on through higher prices. Low ingredient costs in 1995 and 1996, which could increase in 1997, have helped restaurant finances. Many stocks are timely in 1996, and several have potential for 1999-2001.

Short-term investors in the restaurant industry will likely be disappointed in the 1st qtr 1996 but find earnings better in the spring. Longer-term prospects are better for the industry, as the trend among two-income families to eat out continues to gain momentum. Three rapidly growing specialty chains are being tracked for the first time by Value Line: Boston Chicken, Papa John's International, and Lone Star Steakhouse and Saloon.

Papa John's International Inc is outperforming analysts' expectations as its stock rose 32% in the period between August 1995 and March 1996 from a starting price of $39.25 per share. The pizza restaurant chain has in part achieved this notable degree of success, despite being in a highly competitive sector of the restaurant business, by focusing its attention solely on making great pizzas., Last August, when Raymond James & Associates in St. Petersburg, Fla., initiated its coverage of Papa John's International Inc., restaurant analyst Michael Fineman projected that the company's stock price would [...]

LOUISVILLE, Ky. -- Profits at Papa John's International Inc. were up 48 percent in the first half of 1998, to $17.67 million, from $11.96 million in the comparable period last [...]

BIRMINGHAM, Ala. -- The rapid growth rate and strong financial performance of Papa John's International, the Louisville, Ky., operator and franchisor of the 1,600unit pizza chain, seems to be rubbing [...]

LOUISVILLE, Ky. -- Papa John's International Inc., buoyed by continued aggressive expansion and same-store sales gains, reported a 49-percent gain in profits through the first three quarters to $18.82 million, [...]

LOUISVILLE, Ky. - With the opening of a record 90 new units during the quarter ended March 30, pizza operator Papa John's International Inc. reported a 62-percent gain in profits, [...]

Few figured there was room for another large pizza chain but John Schnatter proved them wrong. In 12 years Papa John's, the franchised chain he founded in Jefferson, Ind., has [...]

LOUISVILLE, Ky. -- With 750 restaurants in its system and an ambitious plan to add more than 100 new units through 1996, Papa John's International Inc. posted a 50-percent increase [...]