After dismissal announcements, a Starbucks store is presented in Encinitas, California, United States, February 24, 2025. Reuters / Mike Blake
Mike Blake | Reuters
The actions of the restaurants fell in the morning of Morning Trading on Monday, fueled by the fears of investors that a recession arrives.
American actions have dropped For three consecutive days after the president Donald Trump shocked the markets with high prices On goods imported from key business partners. Although analysts do not expect the prices to hit most restoration companies directly, the inflation that should follow would express pressure on consumers' wallets and could cause an economic slowdown.
“We consider the direct impact on the costs of prices on restaurants as manageable, emphasizing certain basic products costs, but consider the higher risk as additional pressure on consumption expenditure and the demand for the industry,” UBS analyst Dennis Geiger wrote in a note on Monday.
The concerns of investors have struck restaurant stocks in all sectors.
Actions of Starbucks has dropped by more than 2%, after a baird neutral demotion, citing short -term economic winds. The coffee chain, which is already trying to overthrow its American activitiessaw its stock flow by almost 20% since Trump unveiled the new prices.
“The explanations of the attraction we heard included higher coffee costs of prices, anti-American feelings and risk of recession,” Bank of America Securities Sara Senatore in a research note wrote on Saturday.
Most of the world coffee is cultivated in an equatorial region that extends over Latin America, the Asia-Pacific region and Africa known as coffee belt. Last week, Trump slapped higher prices on key coffee exporters such as Vietnam, Brazil and Switzerland, where grains are roasted. As bananas and vanillaCoffee production cannot be easily moved to the United States due to high domestic demand and climatic limitations.
Trade tensions also endanger international sales of Starbucks. Consumers in China, the second business market, have previously boycotted Western brands for political reasons.
A sign is displayed in front of an Applebee restaurant on June 12, 2024 in Hayward, California.
Justin Sullivan | Getty images
The relaxed restoration channels also took a fall. Actions of Dinner the brandswhich has Applebee and Ihop, flowed almost 3%, while its rivals Darden restaurants And Texas Roadhouse fell less than 1% and 2%, respectively.
Quick actions, a recent investor favorite, have also slipped. Chipotle Shares have slipped almost 2%, Sweetgreen the action dropped by 1% and actions Wingstop sunk less than 1%.
Fast food actions were not spared from Monday decreases. Actions of McDonald's,, Restaurant Brands International And Yum brands All plunged into morning trading.
Historically, fast food chains have managed the best during recessions, because guests looking for cheap meals exchange restaurants with full service or fast boxes in McDonald's or Taco Bell. But the withdrawal last year in consumption expenses saw the fast food restaurants hit hard. Low -income consumers have visited less frequently and have their orders, while consumers with higher incomes have stuck to their usual catering habits, leading to comparable store reductions for fast -service restaurants.
Few stocks of restaurants were in the green. Actions of Dutch bros., a rapid growth rival of Starbucks, increased by more than 4% in afternoon trading after plummeting almost 10% on Friday. How are you won more than 6%.