Ms. Regan: To tell you the truth, we are looking at what traditionally is called the barbell strategy. We call it the "dog bone," and we are focused on either end, with the low end in limited service, and fine dining on the high end.
TWST: Would you explain why you're avoiding the middle?
Ms. Regan: Really, we are seeing underweighting in general the casual dining space. The reason is it tends to be a little bit more oversupplied versus the other areas of the industry. We believe that demographic trends favor again the low end and high end more so than the casual dining space, meaning the way Gen Y continues thinking about the next wave of a big population, with lots of people and lots of money to spend. And also maybe up until recently, valuations were more rich as it pertained to the casual dining stock.
Tickers included in this excerpt: BAGL, BKC, CMG, DRI, MCD, MRT, MSSR, PFCB, PNRA, RUTH, SBUX, SONC, UN
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