Rising oil prices may be starting to crimp the improving picture for casual dining chain Brinker International (NYSE: EAT).



Chart Courtesy of StockCharts.com



There is a fairly good correlation between oil prices and the action in the stocks of casual dining companies. It's pretty simple. When oil prices rise, so do gasoline prices. And that means less driving, which can translate into less restaurant traffic.

Higher gasoline prices also compete with disposable income, which is the lifeblood of casual dining.

It's still early as oil prices are struggling to rise above $80 convincingly. But Brinker's recent run has stalled, although the stock was due for a bit of consolidation.

The key is to see what happens over the next couple of weeks. If the economy shows more improvement, it could spur another run in Brinker and the restaurant sector.

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