Consumer sentiment plummeted last quarter, as concerns about tariffs and the stock market weighed on everyone’s minds. Some restaurant chains have suffered amid this decline in sentiment, recent earnings calls suggest, while others have risen to the challenge and prospered. Chipotle, for instance, had a rough quarter. Its same-store sales dipped 0.4%, the first time they’ve dropped since 2020. Revenue came in below analysts’ estimates, and the company lowered its same-store sales guidance for the year. KFC, Pizza Hut, and Starbucks all saw US same-store sales drop year over year, and Starbucks’ EPS was down 50% year over year. Chipotle CEO Scott Boatwright pinned his chain’s weak quarter on dampened consumer spending due to uncertainty about the economy. The company performed a “visitation study” and found that “saving money because of concerns around the economy was the overwhelming reason consumers were reducing the frequency of restaurant visits.” Promotions and a value focus are helping some chains thrive: But other restaurant chains are seeing gains in the same macroeconomic environment. Taco Bell—owned by Yum Brands, the same company that runs KFC and Pizza Hut—saw its overall US sales grow by 11% and its same-store sales by 9%. And Chili’s is downright booming: It enjoyed 31% same-store sales growth and 21% growth in foot traffic year over year. Its parent company, Brinker International, saw its EPS more than double YoY, from $1.08 to $2.56. Keep reading here.—CV |