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economy

Financing

Stocks enter bear territory and restaurants go right with it

Shares of restaurant companies have lost nearly a quarter of their value so far this year amid higher interest rates and recession fears. Winners remain few.

Financing

Restaurants continued to add jobs in April

The industry added 43,800 workers last month, continuing its gradual recovery from post-pandemic job losses. But the rate of growth is slowing.

The Bottom Line: Tucked in the company’s earnings are signs that some consumers are cutting back. The burger giant’s executives believe they need to have some value to keep them coming.

The Bottom Line: A Placer.ai analysis found customers are less willing to drive long distances to visit Sonic or The Cheesecake Factory, suggesting a quiet impact of inflation on dining habits.

The Bottom Line: Fears are growing that higher interest rates to stifle inflation will ultimately trigger a recession. Here’s what this could mean for restaurants.

The Bottom Line: With the omicron surge subsiding and local regulations easing, consumers were feeling increasingly comfortable dining out. The Ukraine invasion changed all that.

Limited-service menu prices rose 8% while full-service prices increased 7.5%, but overall inflation was just as bad.

The Bottom Line: Operators are raising prices at levels not seen in decades. They say consumers are paying them. But that may only last so long.

Oil and corn prices soared, leading to inflationary concerns. But stocks had a roller-coaster day. And operators don’t fear more supply disruptions, at least yet.

Industry sales declined for the third time in four months in January, according to new federal data. And the slowdown appeared to accelerate.

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