1225 ET - The restaurant industry could see some improvements in the second half of the year, but there are still a lot of question marks, UBS analysts say. The analysts expect consumers to show some recovery in discretionary spending as gas prices go down, which could create a small boost in traffic, the analysts say. Still, low- and middle-income consumers continue to be more pressured, creating bifurcation in the first half of the year, they say. Restaurant traffic could still face challenges from consumers eating more at home and potentially dining out less because of increasing GLP-1 use. "Investors are trying to assess underlying restaurant-demand trends, with noise from multiple crosscurrents," the analysts say. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

July 06, 2026 12:25 ET (16:25 GMT)

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