Franchisors, High-Traffic Restaurants Are Industry's Resilient Few -- Market Talk

Dow Jones04-08

1454 ET - Restaurants could have some bumps ahead, Baird analysts say, as dining spending typically correlates with factors including consumer confidence and stock-market volatility, which are currently unfavorable. The analysts downgrade Starbucks and Portillo's, factoring in new economic scenarios after previously expecting 2025 to bring more dining traffic than the year before. Some restaurants are still strong, but investors should be more selective, the analysts say. Franchisors, such as Wingstop and Dominos, or companies that can produce above average traffic performance in the near-term, such as Chipotle and Cava, are safer bets, they say.(katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

April 07, 2025 14:54 ET (18:54 GMT)

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