Dashboard Capital Markets August 2023

Aug 1, 2023 | Dashboard, Restaurant Research

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Economic Outlook

  • After decent 2Q results, the GDP is expected to flat line because of the Fed’s ill-conceived rate hikes as discussed in this post.
  • While the consumer continues to hang-in, largely because they remain employed, the labor market does seem to be loosening according to Robert Half and ManpowerGroup.
  • Equifax further reports that consumers are spending and borrowing with credit card & personal loan balances back above pre-covid levels, although delinquencies remain at a record low.
  • So, despite an increase in the Consumer Confidence Index in July to its highest level since July 2021, it seems that consumer strength is generally softening.
Key Economic & Consumer Date Chart

Capital Markets Commentary

QSR Stock Summary July 2023
  • FSR stocks also had a nice July, helped by BJ’s reporting that its 2Q23 restaurant-level margin reached its highest level since covid. However, Texas Roadhouse’s stock performance reflects that it told a mixed story, reporting strong demand with consumers trading down into its restaurants but then selecting value items, thus driving alcohol & entrée mix declines.
FSR Stock Summary July 2023
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