7 Reasons Why Fast-Food Company Stocks Are Falling

mcdonalds headquarters tour

Photo: Kim Bhasin / Business Insider

Earlier we noted that McDonald’s was down a fair amount today, and that one possibility is that it has to do with Obamas call for a $9 minimum wage. Other fast food companies are down as well.Analysts have actually a range of ideas for what’s causing the sector to lag.

JPM has put out a note going over some possibilities.

We summarize their points in bullets.

  • Casual dining Same-Store Sales as measured by KnappTrack came in weak for January.
  • A number of retailers have made comments about weak consumer discretionary spending.
  • Payroll tax hike.
  • Minimum wage idea.
  • Buffalo Wild Wings miss — higher margins.
  • Gas prices rising.
  • Restaurant supply company Sysco (SYY) mentioning some restaurant industry softness.

Anyway, so it’s not one thing, but a range of issues popping up.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In