7 Reasons Why Fast-Food Company Stocks Are Falling

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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.

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