Seeking Alpha

Restaurant sales sluggish in June

  • Same-store sales at restaurant chains fell 0.1% in June on a 1.7% decline in traffic, according to Black Box Intelligence.
  • The sub-par performance knocks down the argument that weakness in Q1 and for the early part of Q2 was largely due to weather factors.
  • Restaurant Finance Monitor notes that the increase in quality of to-go meals by grocery store chains and pharmacies could be having an impact.
  • Related stocks: CAKE, CBRL, DRI, EAT, PNRA, RRGB, RT, BWLD, THI, BDL, NATH, LUB, CHUY, BLMN, TXRH, DENN, BBRG, DFRG, BOBE, RUTH, IRG, DIN.
Comments (4)
  • SivBum
    , contributor
    Comments (1836) | Send Message
     
    They keep adding more sugar, artificial sweetener at that, and more salt ... they are hard to eat even with 1/2 price beer.
    14 Jul, 01:42 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1067) | Send Message
     
    I think the problem is not grocery stores but individually owned restaurants and/or small chains that are not part of that survey. There is a lot of innovation in the restaurant space, and most of it is coming from small businesses and not large chains. A lot of people prefer to patronize non-chain restaurants as well.
    14 Jul, 02:41 PM Reply Like
  • Just Some Guy
    , contributor
    Comments (565) | Send Message
     
    I have been concerned that CAKE is not going to make their numbers and the stock may take a hit. I remain long and bullish, and on a large dip may add. Actually, perhaps I should sell now, hmm, ...

     

    An article posted elsewhere discussed trends and suggested that "casual dining" was taking a hit not from grocery stores but from "quality" fast food like Chipotle and Panera. Whether or not CAKE is "casual dining" is a matter of opinion.
    14 Jul, 06:40 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (602) | Send Message
     
    Going out to eat is a zoo in Tucson, Phoenix, El Paso and Santa Fe.
    14 Jul, 08:46 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector