Overview
- CEO Scott Boatwright said millennials and Gen Z are dining out less due to unemployment, student loan payments and slower wage growth, shifting spending to groceries.
- Households earning under $100,000, which account for about 40% of sales, have reduced visit frequency, with management stressing it is losing these guests to food at home rather than rivals.
- Comparable restaurant sales rose 0.3% in the third quarter, adjusted EPS was $0.29, and restaurant-level margin slipped to 24.5% from 25.5% a year earlier, according to company results and LSEG data.
- Sales trends at the start of the fourth quarter worsened versus the third quarter, reinforcing management’s view of pressure on younger and lower-income customers, according to commentary highlighted by Yahoo Finance.
- The company now expects 2025 comparable sales to decline in the low-single-digit range after previously forecasting roughly flat performance and is retraining employees and tweaking bonuses to address digital accuracy, ingredient availability and cleanliness.