Blog: Investors are pouring money into restaurants, even though sales remain weak
February 22, 2017
This post is part of the On the Margin blog.
Restaurant stocks have surged after President Donald Trump’s victory in November, much like Wall Street as a whole, and they’ve continued their winning ways early in 2017. Restaurant stocks are up 6 percent so far this year, according to the NRN Restaurant Index.
Meanwhile, restaurant chains have submitted a pretty long string of depressing tales about their traffic numbers.
A series of restaurant chains have reported weak same-store sales and traffic, from Potbelly Corp. to Starbucks Corp., and even McDonald’s Corp., as well as Applebee’s owner DineEquity Inc. and Outback Steakhouse owner Bloomin’ Brands Inc.
While there have been a few exceptions, in general the industry is confirming that 2016...
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