Baird survey shows restaurant sales slowed in late June

Investing.com -- A survey of private restaurant chains showed same-store sales growth slowed in the week ended June 28, with weaker performance in fast casual and quick-service segments.

Baird polled executives at private restaurant chains representing $26 billion in annual sales. The survey showed comparable sales rose close to 2% for the week, down from an average of 4% in the first three weeks of June.

The June average was slightly below the 3% growth seen in both April and May, and below the first quarter's 2.7% increase. Cooler and wetter weather compared to last year may have affected demand trends in the final week of June, according to Baird's preliminary analysis.

Quick-service restaurants showed comparable sales down 1% in the most recent week and up less than 1% for June overall. This compared to 2% growth in May and roughly 1% to 2% in April. For the second quarter, the quick-service segment averaged 1% to 2% growth, below the first quarter's 2.2%.

Casual dining locations posted comparable sales down less than 1% in the final week of June. The segment averaged a 1% decline for the full month, matching May's performance. Second quarter comparable sales averaged a 1% decline, an improvement from the first quarter's 1.6% drop.

Fast casual chains reported 7% comparable sales growth in the most recent week, bringing June's average to 10%. This compared to 5% growth in both May and April. One large participant with company-specific factors drove much of June's improvement in this segment.

Coffee concepts showed 4% to 5% comparable sales growth in the final week of June and 3% to 4% for the full month. This compared to 3% to 4% in May and 5% in April. The second quarter averaged close to 4% growth.

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