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Restaurant stocks hover near 52-week lows amid weaker US traffic
The National Restaurant Association said August sales rose 1.2%, but same-store US sales at one mega-cap chain grew only 0.8% and lower-income diners face pressure from high gas and inflation on food away from home.
Restaurant shares are trading near 52-week lows as US consumer pressure weighs on the sector, MarketBeat Ratings reports. The National Restaurant Association said total eating and drinking place sales increased 1.2% in August after a modest gain in July, offering relief after months of rising commodity costs and declining consumer sentiment, but the report also noted high earners are driving most foot traffic while lower-income consumers remain squeezed by high gas prices.
The underlying data is also showing consumers shifting away from eating out. Food away from home inflation is now outpacing grocery price growth, which can reduce restaurant visits as diners opt to stay home and cook, according to MarketBeat Ratings.
The story highlights McDonald’s as an example of how demand has softened, pointing to disappointing comments shared during its Q2 2026 conference call on Aug. 4. Management reported revenue missed expectations, with only 3.7% year-over-year growth, global comps growing 1.3%, and same-store US sales rising just 0.8%, with July comps turning negative despite a FIFA World Cup marketing push.
MarketBeat Ratings also notes that analysts have moved down their targets for the restaurant group, citing a weaker outlook for the US market. It adds that McDonald’s NEXT strategy includes roughly $8.5 billion in franchisee partnering support through 2036 for modernization and technology, with targets for a low-to-mid 50% operating margin by 2030, while franchisees have raised concerns about high beef and labor costs.