Forbes: Fast Casual Stocks Decline Amidst Lower Consumer Spending

Fast-casual restaurant chains are facing stock declines as younger and lower-income consumers curtail spending, according to a recent Forbes report. Chipotle, whose 25-35 year old demographic accounts for 40% of its sales, has seen its shares drop by 43.7% over the past year. CEO Scott Boatwright attributes this decline to reduced dining out frequency among this key consumer group. Other fast-casual businesses have experienced even more significant losses; Cava's stock is down 59.9% year-over-year, while Sweetgreen has seen a decrease of 82.8%. The National Restaurant Association suggests these declines are driven by economic pressures, including rising unemployment and inflation, which are impacting consumer budgets and increasing value-consciousness.