July 29, 2016 CFSI Staff

Analyst Warns of a Restaurant Downturn and Sees Harbinger of U.S. Recession

According to one analyst, not even the Pokemon Go craze can save the restaurant industry.

During much of the recovery from the financial crisis, restaurant spending has been a retail highlight as other areas, like department stores, have struggled. According to Stifel Financial Corp. analyst Paul Westra, however, recent surveys point to the start of a serious decline.

“Today, we adopt a bearish outlook for restaurants as we confidently believe that, at a minimum, the simultaneous -150 basis points to -200bps deceleration of restaurant industry comps across all categories during the second quarter within our most recent Stifel Sales Survey reflects the start of a U.S. Restaurant Recession,” Westra and his team said in a note…

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