In a note to investors, Analyst Bryan Elliott said that he believes dining out has become "embedded" in the American lifestyle.

The Raymond James analyst lifted Brinker International (EAT: news, chart, profile) , Darden Restaurants (DRI: news, chart, profile) , IHOP (IHP: news, chart, profile) and Rare Hospitality (RARE: news, chart, profile) to outperform from market perform ratings, while his ratings on Cheesecake Factory (CAKE: news, chart, profile) went to outperform from underperform. At the same time, Elliot upgraded Outback Steakhouse (OSI: news, chart, profile) , Panera Bread (PNRA: news, chart, profile) and Ruby Tuesday (RI: news, chart, profile) to market perform from underperform.

The moves follow two downgrades for the group since early July, the latest at the beginning of this month following news of fuel shortages and high gas prices in the wake of Hurricane Katrina.

"Our Raymond James restaurant universe is down approximately 20% since our July 7 initial group downgrade," Elliott wrote. "The group has underperformed the S&P 500 Index ($SPX: news, chart, profile) since then as well, on fears of consumer-spending declines."

"[Following] this carnage, we now believe there is sufficient investment value in many of the stocks in our universe that we are raising a number of ratings one notch," as "all but the worst-case energy and economic scenarios are now mostly [reflected] in most of the stocks."

Elliott said that channel checks had revealed only "modest" changes in spending patterns thus far, especially at chains that cater to middle- and upper-middle-income U.S. consumers.

But, he added, "we might not be at the group's lows."

The consumer spending outlook, according to the analyst, "remains very uncertain given the 'tax' effect on consumer spending from gas prices, which [are] likely to be followed by huge jumps in heating bills this winter."

That's bad news for chains catering to the less well heeled. The more chains are exposed to moderate-income-level consumers, "the greater the risk of sales and [earnings] surprises over the next few quarters."

However, he continued, Raymond James believes that effect is mostly offset by the now more-modest valuations, "as well as our belief that eating at restaurants has become embedded in most consumers' lifestyles, and is very unlikely to fall materially unless gasoline shortages materialize."

Certainly, Darden is feeling no pain yet from high prices at the pump or any other indication of economic stress. Late Thursday, the parent of Olive Garden and Red Lobster reported first-quarter earnings of $85.5 million, or 53 cents a share -- up from $71 million or 44 cents a share, and a penny ahead of the average estimate of analysts polled by Thomson First Call.

Revenue came in at $1.41 billion, up from $1.28 billion and also slightly ahead of the Wall Street view.

Darden said that same-store sales for its Olive Garden chain rose between 7% and 8% in August and were up 7.4% in the quarter, while Red Lobster saw same-store sales rise 3% or 4% in August and 5.7% in the full quarter. It also reaffirmed its fiscal 2006 target for low double-digit earnings growth.

Hurricane Katrina, according to the company, would wreak a $16 million to $17 million impact on revenue, but would have only a minimal effect on operating profit.

Shares of Darden were up more 2.2% to $29.72, as all the chains upgraded by Elliott were on the rise.

Brinker gained about 2% to $37.66; IHOP jumped 2.2% to $39.85; and Rare tacked on nearly 2.2% to $26.26. The Cheesecake Factory added 1.6% to $31.51, while Outback ground out a 1.6% gain at $38.56. Panera Bread rose 5.1% to $52.23, and Ruby Tuesday hung on to a 2.1% pop at $21.99.