To The Moon

Last week, it wasn’t just tech stocks that fell on Wall Street — the restaurant sector also took a major hit amid high inflation and rising job losses. Papa John’s plunged more than 20% after Apollo abandoned its $2.2 billion takeover bid, while Pizza Hut reported its eighth straight quarter of declining sales, prompting parent company Yum! Brands to consider going private. These setbacks reflect a broader slowdown in young Americans’ spending power, squeezed by soaring living costs, layoffs, and mounting debt, leading foreign investors to downgrade popular chains like Cava, Dutch Bros, Shake Shack, and Starbucks.

$McDonald's(MCD)$ $Yum(YUM)$  

$CAVA Group Inc.(CAVA)$  $Dutch Bros Inc.(BROS)$  $Shake Shack(SHAK)$  

$Starbucks(SBUX)$  

Chipotle has cut its revenue outlook for three consecutive quarters, with the CEO admitting that customers across all income levels are dining out less often — especially those aged 25 to 35, pressured by job insecurity, student debt, stagnant wages, and high inflation. Similar consumer pullbacks have been reported at Cava and Sweetgreen, where the notion that “young people can’t even afford salad bowls” has become a symbol of the 2025 economic squeeze.

In contrast, McDonald’s continues to outperform expectations — its budget-friendly meals are even attracting higher-income diners, marking two straight quarters of stronger-than-expected same-store sales. The polarization in America’s restaurant industry has never been clearer.

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