Dashboard: Capital Markets

Nov 1, 2022 | Dashboard, Restaurant Research

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Stock Performance

THE ECONOMY NEEDS A LITTLE LOVE FROM THE ENERGY PRODUCERS  

The good news is that Americans are largely employed and the GDP is printing in the black. However, the macro dashboard below reveals the following headwinds: (1) higher interest rates; (2) stalling disposable income growth; (3) rising consumer debt & a substantial drop in the savings rate; (4) significant inflation in energy prices and rent. So long as the powers that be decide to start increasing the supply of oil all is not lost.  

Early 3Q22 results from the publicly traded restaurant companies are encouraging, and this is reflected in the stock price performance outlined below. Check out our nobull 15 second posts for quick take-aways from the early reporting here.

Unit-Level Valuation Metrics Provide Insight into Restaurant Stock Prices (Sum-of-Parts)

FRANCHISE VALUATION OUTLOOK GROWS LESS BEARISH

Unit-level buyers are starting to factor-in positive news currently being reported by the public companies. 

Cap Rates

CAP RATE SPREAD IS AT RECORD LOW AS SELLERS HOLD THEIR GROUND

The cap rate vs. 10-year gap continued to shrink in October as sellers are reluctant to lower their selling prices despite a higher rate environment.

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