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The restaurant sector is on watch after a pre-earnings warning from Darden Restaurants (DRI) and...

The restaurant sector is on watch after a pre-earnings warning from Darden Restaurants (DRI) and a harsh downgrade on Wendy's (WEN) sets a negative tone. The picture being painted for 2013 is starting to get pretty consistent - margin pain and soft traffic trends. Other things to watch in 2013 for the sector: 1) The impact of higher payroll taxes. 2) The coming costs of the Affordable Care Act. 3) The push to raise the minimum wage. 4) Which chains can succeed in China and India?
Comments (5)
  • minecanary
    , contributor
    Comments (427) | Send Message
     
    Man, this is getting confusing. The fast food guys need to hire more folks to goose the unemployment figures but cut everyone's hours so they don't count as full time and still pay a higher minimum wage and provide some heathcare (or pay the fine) but then the workers can get food stamps and subsidies to go w/their free cell phones and housing..unless their gov't loans for college, that they no longer attend, are in arrears but they can show hardship or at least prove they voted for the Dems who keep this clusterfudge going.....grrrrr
    22 Feb 2013, 12:02 PM Reply Like
  • rnixi
    , contributor
    Comments (5) | Send Message
     
    Boy, do I agree with you. I think there is one correction, hasn't MCD been excused from having to meet the Obama care requirements?
    23 Feb 2013, 07:46 AM Reply Like
  • minecanary
    , contributor
    Comments (427) | Send Message
     
    I believe there are companies getting exemptions but I'm not current on the fine points. Major tenets of the bill are still being 'interpreted' as sections of the Dem. powerbase discover they aren't coming out smelling good. The labor unions are the latest to suddenly be not happy.
    23 Feb 2013, 10:16 AM Reply Like
  • Pros and Cons
    , contributor
    Comments (143) | Send Message
     
    Less and Less people are eating out, tipping less, and using coupons according to a few owners i know!
    22 Feb 2013, 02:36 PM Reply Like
  • tampabay
    , contributor
    Comments (286) | Send Message
     
    MCD has a $1.00 menu, no tipping, no coupons, eat for $3, try that at the grocery store, and don't say eat healthy, Americans don't care..
    23 Feb 2013, 02:14 PM Reply Like
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