Restaurant sales are expected to improve in the second half of the year, despite a weak start to 2025. Executives from major chains like Chipotle, Wendy’s, and McDonald’s predict stronger results as the industry recovers from harsh winter weather conditions and consumer caution.
While some restaurants reported improved sales in the fourth quarter, executives warned that the first quarter will be weaker due to lower traffic and sales growth. In January, freezing temperatures, wildfires, and a cautious consumer led to lower sales, with Chipotle estimating its January same-store traffic growth was hurt by 400 basis points due to the weather.
However, many chains are optimistic about the second half of the year, citing easy comparisons to last year’s declines in traffic and sales. Restaurant Brands’ CFO Sami Siddiqui said that “year-over-year comparisons will ease into the summer months.” Chipotle also expects its first-quarter same-store sales to be roughly flat, but predicts stronger sales in the second half.
Fast-food chains like McDonald’s are looking forward to a rebound in demand after an E. coli outbreak weighed on sales in mid-October. The company predicts that demand will recover by the beginning of the second quarter, with CEO Chris Kempczinski saying that if the underlying environment improves, McDonald’s can expect significant gains.
Starbucks, which suspended its outlook for fiscal 2025, expects its earnings to improve in the second half of the year. CFO Rachel Ruggeri told investors that while the first quarter will be challenging due to seasonality and restructuring efforts, the company is poised for improvement later in the year.
Source: https://www.cnbc.com/2025/02/16/restaurant-earnings-mcdonalds-chipotle-warn-of-weak-first-quarter.html