Consumer Companies Down on Jobs Worries - Consumer Roundup

Shares of retailers and other consumer services companies declined amid fears that the jobs market was tightening.

The "fast casual" category of restaurants is expanding at a rate that could lead to overcapacity, said analysts at brokerage Morgan Stanley. "Total chain restaurant capacity growth still about 2%, but fast casual continues to accelerate, in a possible harbinger for future overbuilding, and potential implications for incumbents Chipotle, Panera, and fast food overall," said the Morgan Stanley analysts, in a note to clients. "Our annual proprietary unit count survey suggests all may be well on the surface, but the potential for overbuilding in fast casual is beginning to loom. Overall total chain restaurant growth remains at about 2% in '15/'16, roughly consistent with the prior two years...the growth of fast casual is by far the most aggressive at more than 10% in '16, fueled by consumer demand and investor interest in capitalizing on this new trend."

Volkswagen postponed publication of its 2015 accounts and the date of its annual general meeting of shareholders, citing difficulties producing accurate valuations as it struggles to get its arms around the emissions-cheating scandal.

-By Rob Curran, [e-mail]

(END) Dow Jones Newswires

February 05, 2016 16:26 ET (21:26 GMT)

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