Restaurant giants report earnings this week, including Chipotle Mexican Grill and McDonald’s. The reports could show whether consumers are still willing to spend more to eat out. Although the AdvisorShares Restaurant ETF is up 24% this year, growth may have slowed, Wells Fargo told its clients.
• Sales at food services and drinking places rose 0.1% in June, a slowdown from May’s 1.2% gain, according to retail sales data. Prices for food away from home rose 7.7% in June compared with last year, while grocery prices rose 4.7%.
• Consumers torn between the costs of dining out or buying food to cook at home are frequenting cheaper restaurants. Fast food and fast-casual restaurants were 60.4% of total restaurant visits in the second quarter, Placer.ai data said.
• Analysts expect McDonald’s to report earnings per share of $2.78 on Thursday, with revenue of $6.3 billion, according to estimates tracked by FactSet. Same-store sales are seen rising 9.2%, but that is slower growth than in the first quarter.
• Wall Street expects burrito chain Chipotle to report earnings per share of $12.31 on revenue of $2.5 billion on Wednesday. Same-store sales are seen rising 7.6%, also a slower pace than the first quarter.
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