In a sudden twist of fate, the long-anticipated consumer pullback has finally arrived, casting a shadow over some of America’s most beloved fast-food chains.
The news from Starbucks sent shockwaves through the market, with a surprise drop in same-store sales leading to a 17% plunge in its shares. But the coffee giant isn’t alone in its struggles. Pizza Hut and KFC also reported shrinking same-store sales, signaling a broader downturn in consumer spending. Even McDonald’s, a stalwart of the fast-food industry, admitted to adopting a “street-fighting mentality” to compete for value-minded diners.
Amidst this economic turbulence, Federal Reserve Chair Jerome Powell appears unfazed, dismissing talk of a stagflation scenario. However, dissenting voices argue otherwise, pointing to discrepancies in employment and economic data.
Sources:
Jerome Powell: "Don't really understand where talk of stagflation scenario is coming from given US data."
Our employment jobs data is fake. That has been proven. We are actually losing jobs, not gaining jobs.
Our CPI data is fake.
Our GDP data is massively goosed by govt…— Wall Street Silver (@WallStreetSilv) May 2, 2024
Small business owners' top concerns pic.twitter.com/BEL2jDLA8R
— Win Smart, CFA (@WinfieldSmart) May 2, 2024