Consumers might have closed their wallets to frivolous spending, but they’re ramping the spending back up by dining out at value restaurants, giving ETFs a kick.
Although visits to restaurants have fallen now for two straight years, the decline lessened in the spring quarter. The Associated Press reports that spending has spike upwards for morning meals, a bandwagon that McDonald’s (NYSE: MCD) and Burger King (NYSE: BKC) have been banking on. While traffic at restaurants is generally down, spending is up 1%.
Greg Ferrell for The Financial Times reports that in the United States, McDonald’s continued to outperform other fast food chains with a 4.6% increase in sales over the previous August. McDonald’s,the world’s largest fast-food chain, reported that its same-store sales for August were up 4.9% globally year-on-year.
McDonald’s said its performance in the United Kingdom and Russia was also strong, but that gains in those markets were offset by weakness in France.
- PowerShares Dynamic Food & Beverage (NYSEArca: PBJ): McDonald’s is 5.3%; Yum Brands (NYSE:YUM) is 5.2%; PBJ is up 3.8% in the last six months
- PowerShares Dynamic Leisure & Entertainment (NYSEArca: PEJ): McDonald’s is 5.4%; Yum Brands is 5.2%; Burger King is 2.6%; PEJ is up 2.7% in the last six months
- SPDR Consumer Discretionary (NYSEArca: XLY): McDonald’s is 7.6%; Yum Brands is 2%; XLY is up 0.8% in the last six months
Tisha Guerrero contributed to this article.