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.