Restaurant stocks tick down as Powell warns of tight policy, economic pain

Dennys

26/08/2022 16:35

** Shares in U.S. restaurants drop after Fed Chair Jerome
Powell's comments suggest the central bank will keep raising
interest rates to fight inflation
    ** Powell warns of slower growth, weaker job market and
"some pain" for households and businesses, sending Wall Street
down sharply on Friday  .N  
    ** Shares of top fast-food chains McDonald's  MCD.N ,
KFC-parent Yum Brands  YUM.N , Burger King owner Restaurant
Brands International  QSR.N  and Wendy's  WEN.O  fall between 1%
and 2% 
    ** Coffee chain Starbucks  SBUX.O  drops 2.5%, while
doughnut chain Krispy Kreme  DNUT.O  slips ~2%; Shake Shack
 SHAK.O  down ~6% 
    ** Pizza restaurants Domino's Pizza  DPZ.N  and Papa John's
International  PZZA.O  down 2% and 3.2%, respectively, while
burrito chain Chipotle Mexican Grill  CMG.N  falls 1.8% 
    ** Chili's-owner Brinker International  EAT.N  falls more
than 4%, while Denny's  DENN.O  and Olive Garden-parent Darden
Restaurants  DRI.N  drop ~3% 
    ** The S&P 500 Restaurants  .SPLRCREST  index has fallen
~12% this year, as of last close

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))