Restaurants are rebounding — but Starbucks and McDonald's still have work to do
Starbucks is expected to report its quarterly earnings on Tuesday, kicking off several weeks of reports from restaurant companies as investors anticipate improving demand for dining out.
Starbucks is expected to report its quarterly earnings on Tuesday, kicking off several weeks of reports from restaurant companies as investors anticipate improving demand for dining out.
A handful of restaurants released preliminary results earlier in January ahead of presentations at the annual ICR Conference in Orlando. For many, like Red Robin and Noodles & Company, their early report showed sales trends improved during the fourth quarter, giving investors more confidence and pushing their shares higher. Only Shake Shack saw its stock fall; its outlook disappointed shareholders, who were hoping for higher targets.
But the largest restaurant companies have yet to announce any results. Starbucks paves the way with its announcement on Tuesday after the bell. Yum Brands and Chipotle won’t share their earnings until next week. McDonald’s, often considered a consumer bellwether, isn’t on deck until Feb. 10.
However, a rollercoaster 2024 for restaurants might have ended on a high note — and that could bode well for the industry in the year ahead.
Industry data suggests that the fourth quarter was better for restaurants overall than the rest of the year. Same-store sales grew in both October and November, according to data from market research firm Black Box Intelligence. December was the only month same-store sales fell during the quarter, but Black Box attributed the swing to the calendar shift caused by a late Thanksgiving.
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