Area bank, restaurant stocks pop as market sentiment improves

Wednesday, July 23, 2008 at 2:09am
CBRL Group Inc. stocks jumped more than 12 percent Tuesday.

The suffering shareholders of two prominent locally based restaurant companies got a respite yesterday as investors bet that falling oil prices will bring relief to consumers.

CBRL Group Inc., the parent of the Cracker Barrel chain, jumped more than 12 percent to close at $24.68. O’Charley’s Inc. rose almost 9 percent to close regular trading at $11.22. It continued to climb after hours, adding on another percentage point.

Both companies’ shares climbed steadily throughout the day on above-average volume, but they have a long way to go to reach their highs for the year. CBRL is 35 below its 2008 peak, O’Charley’s has steadily slid 25 percent from the $15 level, where it ended last year.

In the banking sector, an optimistic late-day Deutsche Bank analyst report helped propel stocks higher, helping locals Pinnacle Financial Partners and Tennessee Commerce Bancorp continue their recent rebound.

Pinnacle shares rose more than 6 percent to more than $25, while Tennessee Commerce jumped 10.6 percent to $14.10. Despite those big gains and others this month, both stocks also are well off their levels from earlier this year.

Filed under: City Business
By: pandabear on 12/31/69 at 6:00

It must be the restrictions the SEC put on the trades. Unfortunately, I don't think it will last. We're passed peak oil and they are going to squeeze out every last dollar they can before it's all gone. Oil will go zooming back up. Also, the banks keep reporting more and more losses. Reality is reality.

By: Funditto on 12/31/69 at 6:00

They popped? Isn't that a term used in interior design? Who writes these headlines? The dog?

By: Dragon on 12/31/69 at 6:00

Usually a bubble pops and is deflated. Not good when talking about stocks.I'll admit, I opened the article to see why the restaurant and bank stocks were doing poorly when the market was improving.

By: airvols on 12/31/69 at 6:00

POP, poor choice of words, could mean anything. The inflation bubble poped, bad thing. The car pops, good thing.