From CNBC: 2024-11-17 08:00:01

Restaurant industry executives are looking forward to 2025 after a tough 2024, with bankruptcy filings up over 50% and declining year-over-year traffic. However, sales are improving, interest rates are falling, and restaurant valuations are on the rise, sparking hope for future growth and potential IPOs in the industry.

At Shake Shack, CFO Katie Fogertey anticipates a boost in consumer confidence as interest rates fall, despite ongoing cautious consumer behavior. The burger chain has reported increasing same-store sales each quarter this year, reflecting a positive trend in the market.

While Shake Shack remains optimistic, Panera Bread and Inspire Brands are among potential candidates for future blockbuster IPOs. However, challenges persist in the industry, as fast-casual chain Portillo’s has seen falling same-store sales for three consecutive quarters. The value wars between chains continue, with the looming threat of bankruptcy for those relying heavily on discounts.



Read more at CNBC: McDonald’s, Starbucks aim to improve