Amid the heavy market selling on Tuesday, restaurant stocks have performed relatively well. Shares of Cheesecake Factory Inc CAKE 0.34%, Chipotle Mexican Grill, Inc. CMG 1.06%, McDonald’s Corporation MCD 0.72% and Sonic Corporation SONC 0.52% were all in the green on Tuesday morning.

Part of the buying could be in response to strong Q1 earnings from Denny’s Corporation DENN 0.19%, which was up more than 7.4 percent on Tuesday. Stephens analyst Will Slabaugh is among the Denny’s bulls.

“We believe the Company’s ability to sustain such levels of SSS growth along with a consistent earnings profile of its 90 percent franchised mix is supportive of the stock’s premium valuation,” Slabaugh explained. Stephens has an Overweight rating on Denny’s and a $12 price target on the stock.

But restaurants may be getting a boost from commodity prices as well.

Morgan Stanley reported…

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