US Restaurants "Industry Pressures Continue; Sector Oversold?" Geiger

Research evidence excerpt

US Restaurants "Industry Pressures Continue; Sector Oversold?" Geiger

Global Research

18 May 2026ab

US Restaurants Equities

AmericasIndustry Pressures Continue; Sector Oversold?

Restaurants

Dennis Geiger, CFA

Investor caution remains; Valuations increasingly attractive, but conviction low Analyst

Our meetings and investor discussions last week continued to highlight more cautious dennis.geiger@ubs.com

sector sentiment, reflecting broadly still sluggish industry demand and macro conditions +1-212-713 9313

creating risk & limited visibility into outlook. Greater investor concern remains around Paul Hao

QSRs given lower income exposure and potentially more significant macro risks. While Associate Analyst

many investors highlighted potential opportunities from valuation pressures across paul.hao@ubs.com

much of the sector and a potentially oversold group, conviction appears limited. Our +1-201-352 1091

discussions suggest generalist investors continue to maintain less exposure to Nikhil Gunderia

restaurants given broader consumer concerns and macro uncertainty currently. Our Associate Analyst

latest QSR franchisee discussions continue to highlight performance bifurcation among nikhil.gunderia@ubs.com

brands, with gas prices and broader macro challenges negatively impacting visits / spend +1-212-713 3258

for many brands. But select brands (ie Taco Bell, Burger King) appear to maintain Emily Li

significant momentum, with Taco Bell franchisees continuing to highlight strength Associate Analyst

across value, marketing, menu innovation, and digital as key contributors to ongoing emily.li@ubs.com

growth, while beverage / Live Mas Cafe optimism is particularly high. +1-212-649 8262

CAVA earnings (5/19) - key investor expectations we’ve heard include 1Q sss