- As we recently discussed in our Soft Landing post, macro trends are generally looking up, with the major banks passing their stress test, the labor market hopefully headed for a soft landing and inflation cooling. If the Fed can chill out and the mayors of the big cities can keep things sufficiently habitable to avoid a run on commercial real estate, the U.S. economy might just get back to the business of prosperity.
Capital Markets Commentary
- Strength in QSR stocks is consistent with the idea that green shoots for an economic recovery are becoming apparent. This is especially true for fast food as consumer spending is rotating from goods to services currently.
- CAVA Group, Inc.’s 6/21/23 IPO (Mediterranean fast-casual restaurant brand with 263 units) has been very well received by the Street.
- FSR stocks are outperforming QSR’s strong results as consumers pivot not just to services, but to a dining experience.
- This trend is particularly notable with Dave & Buster’s which is well positioned to capture consumers trading down from more expensive vacations to “staycations” that include a trip to Dave & Buster’s.