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BJRI BJ's Restaurants News Story

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Consumer CyclicalsAdventurousMid CapContrarian

BUZZ-Restaurants relatively safer consumer sector amid growth worries - Citi

** Citi notes aggregate wage income is still outpacing
spending growth in non-discretionary categories, assuaging
worries that rising inflation could see consumers cut back
spending 
    ** Says real restaurant sales volumes are continuing to
reach new highs 
    ** Sees "plenty" of room for wallet share to re-set higher;
Wallet share is the amount an existing customer spends regularly
on a particular brand rather than buying from competing brands
    ** Says June data from the U.S. Bureau of Economic Analysis
that showed disposable personal income increased 0.7%, supports
Citi's view (https://bit.ly/3BAWmpU)
 
    ** Citi says historical data shows overall discretionary
spending needed to fall by ~10% before restaurant sales were at
risk; cheered by sequential increase in consumer spending on
durables 
    ** Among results this season for listed restaurants in
United States, McDonald's  MCD.N  beat profit estimates but
warned of weakening consumer demand as inflation pinches
 urn:newsml:reuters.com:*:nL4N2Z72FQ
    ** Chipotle  CMG.N  topped quarterly profit estimates, while
Chefs' Warehouse  CHEF.O  raised profit estimates
    ** BJ's Restaurants  BJRI.O  and Domino's  DPZ.N  missed
profit estimates
    ** YTD, S&P 500's restaurant's index  .SPLRCREST  down ~13%

 (Reporting by Susan Mathew)
 ((susan.mathew@thomsonreuters.com))

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