sales and profits

Operations

The ongoing federal government shutdown is expected to take a toll on some chains

After a third quarter that "ended with a whimper," negative sales trends are expected to continue, said one report. Restaurant chains with a big presence in Washington, D.C. will be hit hardest.

Financing

A huge percentage of U.S. consumers are dining on a deal

Nearly 30% of commercial foodservice traffic was on a deal over the past 12 months, the highest rate in 50 years, according to data from Circana.

The Bottom Line: The coffee shop giant is closing stores and laying off workers as it deals with a surprisingly persistent decline in traffic.

The drive-thru salad chain is closing locations in Houston, Austin and San Antonio. The closures represent more than a quarter of the chain’s units.

According to the National Restaurant Association, median profitability at all restaurants remains lower than it was before the pandemic, despite historic increases in menu prices.

Tech Check: Operators say tech is making them more efficient, but not always more profitable. It may be a question of how it is measured.

The Bottom Line: Here are a few key topics we’re watching as restaurant chains start reporting their end-of-year earnings next week, including Starbucks, McDonald’s, the Trump effect, optimism and weather.

The Bottom Line: The industry had too many locations in 2019. The pandemic led to a lot of closures. But the industry has been aggressively opening restaurants since 2020.

The fast-casual chain has struggled to turn around its financial performance, but its stock price has remained below $1 long enough to trigger a warning.

The family-dining chain posted a same-store restaurant sales increase of 2.9% for the first quarter, but retail sales continued to slip.

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