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NPD: Restaurant Traffic Fell 2.6% During Q2, Sharpest Decline in 28 Years

July 20, 2009 4:01 PM EDT
According to data released earlier from market research company, NPD Group, traffic to restaurants fell 2.6% in Q2, marking the sharpest quarterly decline in 28 years. While the figure seems to bode negatively for the sector, restaurant stocks are holding up today as traders may be hoping that "the worst is now behind us".

Diving a little deeper into the research report, NPD attributed more than half the decline to "fewer dinner visits to restaurants by parties with kids". Further, all segments in the restaurant group posted declines, with a 2% drop in fast-food and a 6% drop in casual dining, all while prices rose 2%. Finally, the NPD report also noted that about 4,000 retail locations have closed since the same quarter last year, certainly underscoring the sector's drastic oversupply problem.

Around the sector:
  • McDonald's (NYSE: MCD) up 0.8%
  • Darden (NYSE: DRI) up 0.9%
  • Chipotle (NYSE: CMG) up 4.2%
  • Wendy's Arby's Group (NYSE: WEN) up 1.3%
  • Brinker International (NYSE: EAT) up 2.8%
  • Panera (Nasdaq: PNRA) up 1.3%
  • PF Chang's China Bistro (Nasdaq: PFCB) up 2.5%
  • Buffalo Wild Wings (Nasdaq: BWLD) down 0.5%

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