Fitch: Shareholder Activism, Consumer Trends Among Top Concerns of U.S. Restaurant Investors

CHICAGO--()--The effect of activist shareholders on credits, the merits of having an investment grade rating, sustainable capital structures and the state of consumer spending are top-of-mind for U.S. credit investors in the restaurant industry, according to a Fitch Ratings report.

During the first-quarter of 2014, Fitch participated in multiple group discussions with investors regarding the U.S. restaurant industry and fielded questions on specific issuers and areas of interest. Fitch's report - in a Q&A format - highlights topics raised during these dialogues and summarizes both recent rating actions and credit trends for several large issuers in the restaurant and foodservice industry.

The questions are grouped into four categories:

-- The Merits of an Investment-Grade Rating

-- Activist Investor Campaigns and Credit Ratings

-- Sustainable Capital Structures for Fully-Franchised Restaurants

-- Consumer Trends: Implications for Food-Away-from-Home Spending

Fitch continues to participate in individual discussions with fixed-income investors regarding these issues but has briefly outlined its view on these subjects in this report.

The full report 'U.S. Restaurant FAQ: Inquiring Minds Want to Know' is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: U.S. Restaurant FAQ: Inquiring Minds Want to Know (Highlights from First-Quarter 2014 Discussions with Investors)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=741558

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Contacts

Fitch Ratings
Carla Norfleet Taylor, CFA
Director
+1-312-368-3195
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Wesley E. Moultrie, II, CPA
Managing Director
+1-312-368-3186
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com

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Contacts

Fitch Ratings
Carla Norfleet Taylor, CFA
Director
+1-312-368-3195
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Wesley E. Moultrie, II, CPA
Managing Director
+1-312-368-3186
or
Media Relations:
Brian Bertsch, +1-212-908-0549 (New York)
brian.bertsch@fitchratings.com