BUZZ-US restaurant chains fail to shake off consumer blues, margin pressures

** S&P 500 Restaurants sub index .SPLRCREST down 1.3% YTD vs a 17.3% rise for the broader S&P 500 index .SPX

** Weak spending by younger customers and middle-income households hurt chains such as Chipotle Mexican Grill CMG.N and Mediterranean restaurant chain Cava Group CAVA.N, with shares falling ~40% and ~50% YTD, respectively

** Still demand for value meals helped McDonald's MCD.N revive sales this year, sending its shares up 6%, while Domino's Pizza DPZ.O shares rose marginally

** Value meals at Burger King and continued strength at Tim Hortons helped U.S.-listed shares of Restaurant Brands International QSR.N rise nearly 6% YTD

** Yum Brands shares YUM.N rose 13.5%, marking its third year of rise, as Taco Bell strength helps offset weakness in its KFC and Pizza Hut chains in the U.S.

** Yum also said it was mulling a sale of Pizza Hut

** It was also a turnaround year for Wendy's WEN.O, Jack in the Box JACK.O and Shake Shack SHAK.N as they contended with a highly competitive restaurant industry

** JACK and WEN on track to lose nearly half their value, while SHAK down nearly 37%

** A year into its turnaround under Brian Niccol, Starbucks' SBUX.O shares down ~6% this year, with high coffee prices hurting margins, even as sales improved

** SBUX and QSR both found local partners for their businesses in China this year to help revive sales in the market

** A bifurcated consumer spending environment, high costs of commodities such as beef, and high discounting, were some trends expected to continue in 2026, according to RBC Capital Markets analyst Logan Reich

** Investors are also closely watching the impact of weight loss drugs on consumer appetite for fast food and dining out

(Reporting by Juveria Tabassum and Sanskriti Shekhar in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com))