Brian Sullivan (Anchor) 00:00.040
Mister appetite for restaurant stocks. It has been it's been mixed this year. You got consumers increasingly hunting for value. Some fast casual names of really sweet green. That's down 79% Cava, once hot IPO, down 48%, Chipotle, down 38%. You know what's up? Yum Brands,
Brian Sullivan (Anchor) 00:21.040
McDonald's up a little bit, and you got eat as well. Some casual dining stocks have held up relatively well. So let's get more in the setup heading into the New Year. and talk to Kate Rogers, Kate about sort of trying to figure out who's who's who's winning here. It's kind of
Brian Sullivan (Anchor) 00:35.280
mixed.
Kate Rogers (Business News Reporter) 00:36.440
Totally mixed, Brian. Good to see you. So BTIG sums it up as a humbling year for the restaurant sector and that's really putting it mildly for some of these nasties. You mentioned fast casual, quick service restaurants really took the brunt of losses this year. Cava, Shake
Kate Rogers (Business News Reporter) 00:50.400
Shack, Chipotle, Blooming Brands, all seeing major pullbacks down double digits year to date. Sweet Green actually the biggest lagger down around 80% as younger consumers kind Then McDonald's, for an example here, adding value assessments into its franchisee standards recently.
Kate Rogers (Business News Reporter) 01:35.560
Fast Casual will also aim to win consumers back. We're seeing this already with Chipotle and its new protein and GLP-1 friendly menu ahead of the new year. Charles also predicts more specialty menu offerings to come. And then finally guys, loyalty programs in focus as they
Kate Rogers (Business News Reporter) 01:50.480
provide a lot of data and the ability to really target consumers with offers in this hyper-competitive landscape. Back over to you.
Brian Sullivan (Anchor) 01:58.760
All right, Kate Rogers, Kate. Thank you very much. Steve Grassol, any hot take on these restaurants?
Steve Grasso (Director of Institutional Sales) 02:03.200
Yeah, I mean if you if you're a value menu, we see them moving away from sweet greens where you have to pay 18 bucks or 20 bucks for a salad or something that you could probably make at home. But if you look at a Chili's, a Brink's, parent company, those are the ones that offer
Steve Grasso (Director of Institutional Sales) 02:17.640
value menus and you have to stick with those. McDonald's didn't do as well, but I I do like Darden. I do like Brink's. I like things where you can get a value meal because with inflation people are looking looking to save money than going out on a line where you have to spend
Steve Grasso (Director of Institutional Sales) 02:33.440
$20 for a salad. I agree.
Brian Sullivan (Anchor) 02:35.120
I'll ask a bigger question. Is there any money to be made in restaurants at all? Like is there a reason to own restaurant stocks? Stocks.
? (?) 02:41.360
Trading stocks. vehicles Absolutely. Well, McDonald's has been a great stock. I mean, it's been lower left up or right, it set some pullbacks along the way, but I think you can still own McDonald's. I will tell you, Shake Shack, we're getting approaching the April low. The stock
? (?) 02:52.840
has been cut in half since July. I think between 73 and 75, which is probably where it's going. I think that gets interesting in the earnings. So So, these are trading vehicles and Shake Shack is the one that I'm going to be looking at over the next couple weeks for sure. 3 1 2
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