interest rates

The Auto Industry’s Take on the Economy

The Auto Industry’s Take on the Economy

Sales of big-ticket items like cars and houses are certainly pressured by the current economic conditions. Sales of new cars remain -17% pre-covid levels even as supply comes online at the same time used car sales are falling off the cliff. Consumers seem to be allocating financial resources that used to pay for housing & transportation to necessities like food & affordable luxuries for the time being.

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Did Investors Forget about December’s Bomb Cyclone?

Did Investors Forget about December’s Bomb Cyclone?

December’s preliminary retail sales release spooked investors who smell a recession. Normally, this would be a boost to stocks because of expectations that the Fed might start to adopt a more dovish stance. However, this represents the first time that investors have finally come to believe that Powell & company intend to keep interest rates inflated, even if hell freezes over. 

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The Fed Puts the Hurt on Uncle Sam

The Fed Puts the Hurt on Uncle Sam

Hopefully, the Fed will reconsider its rate hikes (which are incapable of curtailing supply-driven inflation) by taking pity on the federal government which is starting to share in the pain of indebted Americans everywhere.

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RR Dashboard: Volatile Capital Markets Looking for Fair Value

• Restaurant stocks on average are down -40% from their 52-week high, trading at ~15x EV/EBITDA, as investors continue to struggle to assess the impact of out-of-control inflation on consumers’ ability to maintain their dine-out habits.
• Given current inflation rates, interest rates should be much higher.
• The spread between cap rates and the 10-yr. approached the record low set in April as real estate has become the most attractive asset class to NNN investors.

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