Restaurants State of the Union; Sentiment Squishy; World Cup Awaits

Research evidence excerpt

Restaurants State of the Union; Sentiment Squishy; World Cup Awaits

Equity Research

Earnings Revised — June 9, 2026

Restaurants

Restaurants State of the Union; Sentiment

Squishy; World Cup Awaits

Mid-Q Deep Dive; Prefer SBUX, TXRH, MCD

Our Call Zachary Fadem, CPA

Sentiment in Restaurants is still poor, challenges linger (gas prices, low-income softness, Equity Analyst | Wells Fargo Securities, LLC

Zachary.Fadem@wellsfargo.com | 212-214-8018

beef) & few reasons to underwrite NT improvement. SBUX pullback screen most

Anthony Trainorcompelling; TXRH & MCD too cheap but hairy; Unable to turn the corner on DPZ/QSR.

Equity Analyst | Wells Fargo Securities, LLC

Anthony.Trainor@wellsfargo.com | 212-214-1953

Setups less appetizing. Q1 prints triggered selling, w/ ~70% of our Restaurants coverage Taylor Brimberg

down (-3% avg; SPX +4%) despite EPS moving higher for ~60%+ of our group. The Associate Equity Analyst | Wells Fargo Securities, LLC

rotation away from consumer (toward AI) is real, demand still choppy & overhangs linger Taylor.Brimberg@wellsfargo.com | 212-214-2078

into an important World Cup promo period. We view June/July success a key catalyst for David Lantz

the group as stimulus benefits fade, high fuel lingers & 2H drivers more idiosyncratic. Risk/ Equity Analyst | Wells Fargo Securities, LLC

reward screens more favorable: SBUX, MCD & TXRH; CMG interesting. David.Lantz@wellsfargo.com | 212-214-5044

Jessica Louie

SBUX: Our CFO call suggests runway intact w/ US traffic -LDD% vs '19; We est +3-5c Associate Equity Analyst | Wells Fargo Securities, LLC Jessica.Louie@wellsfargo.com | 332-214-6223

from recent cost outs, FQ3 likely beats & we can bridge to $4.50+ in '28 EPS should ~70%

of $2B costs saves flow.