Gordon Haskett reviews restaurant sector estimate revisions

The Federal Reserve raised interest rates by 25 basis points, the first hike in three years, to combat inflation. Restaurant stocks are under pressure due to declining customer traffic. Companies like Restaurant Brands International (QSR) and Yum! Brands (YUM) may benefit from value menus. The Cheesecake Factory (CAKE) reported strong sales and profit margins. Investors should focus on companies that can maintain traffic and profitability amid rising rates.

Berkshire Hathaway, under new CEO Greg Abel, sold all its Domino's Pizza (DPZ) shares this year, despite the company's long-term fundamentals remaining intact. Domino's recent sales have been weak, but it continues to gain market share and expand globally. The stock's valuation has become more attractive, with its P/E ratio dropping to 18, presenting a potential buying opportunity for long-term investors.

Starbucks (SBUX) won a partial appeal, with a court rejecting most NLRB claims but upholding a finding of illegal threats to a pregnant employee. The company reported Q3 revenue decline of 1% but raised full-year EPS guidance to $2.55-$2.65. Over 700 stores have voted to unionize, and the company faces ongoing labor challenges.

Starbucks is reportedly considering selling a majority stake in its Japan business, valued at about $3 billion. The company operates 1,883 stores in Japan, accounting for 9% of its global footprint. Starbucks is evaluating options and has consulted financial advisers, but no final decisions have been made. The company aims to create value for shareholders and focus on its U.S. business. In Q3, Starbucks reported 7.9% global same-store sales growth and plans to invest $1 billion in revamping Nort

BRINKER INTERNATIONAL, INC (EAT) filed an SEC Form 8-K — Regulation FD Disclosure. EXHIBIT 99.1 BRINKER INTERNATIONAL OUTLINES GROWTH STRATEGY AND LONG-TERM TARGETS AT INVESTOR DAY DALLAS, September 17, 2026 - Brinker International, Inc. (NYSE: EAT) will host its 2026 Investor Day at its headquarters in Dallas, Texas today beginning at 8:30 a.m. CT. A live publ

Wendy's (WEN) stock fell 6% after an analyst initiated coverage with a neutral rating, citing rapid erosion in fundamentals, including a 7% drop in same-restaurant sales and 12.5% decline in customer traffic. The analyst also noted a recent dividend cut and expects sales to remain weak in Q3 and Q4. Competitive pressures and consumer trends were cited as additional challenges.