economy

Financing

Restaurant chains turn to value and marketing as they navigate a tough market

With same-store sales weak so far this year amid a difficult economy, operators are boosting marketing, adding new menu items and turning back to what worked. They’re also discounting more.

Financing

Fitch Ratings lowers its U.S. restaurant industry outlook to 'deteriorating'

The credit ratings agency cited softening consumer sentiment while persistent inflation eats into discretionary spending. It’s the latest indication of what has been a challenging year thus far.

A Deeper Dive: Neal Sherman, CEO of the used equipment company Tagex Brands, joins the restaurant finance podcast to talk about the state of restaurants and the potential impact of tariffs.

McDonald's and Yum Brands report resilient international sales despite rising anti-American sentiment, with both companies seeing steady growth in global markets amid trade war concerns. Leading U.S. restaurant chains maintain strong performance overseas, particularly in developing markets.

The Bottom Line: Consumer sentiment hit the fast-food giant harder than expected. But comments from the company, and results from other chains, suggest a broadening economic malaise.

Restaurant operators and executives, both in public and private, fret about the impact of import taxes on food costs, construction costs and wonder whether they can raise prices. But they’re more worried about the state of the consumer.

A recent University of Michigan survey revealed a dramatic drop in consumer confidence, driven by fears of rising inflation and unemployment. As diners pull back on spending, restaurants face ongoing challenges in a deteriorating economic landscape.

The data firm lowered its projection for foodservice sales this year as weather, economic uncertainty and industry headwinds continue to plague restaurants.

The president paused so-called reciprocal tariffs for 90 days on all countries but China. Imports from that country will now be taxed at 125%.

All but two restaurant stocks plunged on a second day of a market selloff, prompted by a dramatic increase in import taxes.

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