Explosive popularity of appetite suppressants may take a toll on earnings
Investors will look for signs that U.S. fast-food chains, already contending with inflation-stung consumers preferring to dine at home, will also have to grapple with the explosive popularity of weight-loss drugs.) will kick off the earnings season on Thursday and its commentary will be scrutinized by investors worried that appetite-suppressing drugs like Ozempic and Wegovy will spark a fundamental change in food consumption patterns and hurt demand for burgers and fried chicken.
What was quantifiable, however, was the progressively worsening dining traffic at fast-food chains from July to September. That was largely as inflation in food-at-home was much lower -- by as much as 360 basis points, according to Wells Fargo -- than in food-away-from-home, prompting more Americans to stretch their budgets by eating more home-cooked meals.On Thursday after the bell, Chipotle is expected to report a 4.5% increase in Q3 same-store sales, according to LSEG data, slower both on a year-over-year and a sequential basis. Profit likely rose about 18%.
Starbucks’ Q4 earnings report on Nov. 2 is expected to show a 6.5% rise in same-store sales, lower than the 10% in Q3 and 7% last year. Profit is projected to jump about 26%.The S&P 500 restaurant sub-index has risen just 0.4% year-to-date, lagging a more than 10% jump in the benchmark S&P 500.
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