President Donald Trump's proposed tax reform appears to be more likely to succeed than not, which has many investors wondering how best to readjust their portfolio. Baird's David Tarantino took a deep dive into the restaurant sector, where there are a handful of potential winners from both the corporate and individual sides of the tax package. Tax Cuts And Dining Go Hand In Hand From a historical perspective, there's reason to believe that a potential tax break would benefit the restaurant industry, Tarantino said in the research report. The Knapp-Track casual dining index recorded a 2.3-percent comp gain in the year following former President George W. Bush's 2003 tax changes, which marks an improvement from the 1.1-percent average seen in the full year preceding the tax changes. Similarly, restaurant comps rose following President Barack Obama's 2011 tax holiday from a prior negative 0.5 percent to 1.4-percent growth in the year following the change. The analyst's model of how restaurant foot traffic would perform in a theoretical environment fell short of the actual traffic seen during both periods following favorable tax changes, making it logical to conclude that tax cuts have a direct and positive influence on the restaurant industry. Read more