Weak Sales and More Deals Are Giving Restaurant Investors Concern -- Market Talk

Dow Jones
Sep 02

1015 ET - Restaurant stocks have lagged the broader market with flat to negative sales across brands, and increasing discounts could pressure profitability, according to UBS. The analysts also say that slower global growth due to closures in some international markets are fueling investor concerns. A recent survey from Revenue Management Solutions found more consumers said they visited restaurants less rather than more over the previous month and more consumers said they planned to visit restaurants less rather than more, according to UBS. Investors are particularly focused on the fast casual segment's hurdles with challenged consumer sentiment, elevated pricing, difficult comparisons, and risk from younger consumer exposure, the analysts say.(nicholas.miller@wsj.com)

(END) Dow Jones Newswires

September 02, 2025 10:15 ET (14:15 GMT)

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