Restaurant chains face declining sales and economic challenges

Restaurant chains are facing challenges as consumer spending declines amid economic uncertainty. Major companies like McDonald's and Chipotle expect improved sales this year, but recent comparable sales growth has slowed, raising concerns among investors. In the last quarter of 2024, McDonald's saw a global sales increase of just 0.4%, with a 1.4% drop in the U.S. Chipotle's growth was 5.4%, down from 8.4% a year earlier. Both companies remain optimistic about future performance. Economic factors, including potential tariffs, could negatively impact sales and profits. Consumers are shifting towards home-cooked meals, and uncertainty about tariffs adds risk for investors considering restaurant stocks. Caution is advised as conditions may not improve as expected.