BUZZ-Restaurant stocks slump as Trump's tariffs raise recession fears

Reuters
07 Apr
BUZZ-Restaurant stocks slump as Trump's tariffs raise recession fears

** Shares of restaurant companies fall as President Donald Trump's hefty tariffs on several countries raised fears of a recession and sparked a global markets sell-off

** UBS analysts say direct cost impact of tariffs on restaurants manageable, but see bigger risk as incremental pressure on consumer spending and industry demand

** Incremental industry traffic and sales challenges are possible over the coming quarters; focused on consumer sentiment and spending patterns, including whether lower-income consumers exhibit incremental caution and if pressures spread to higher-income cohorts - UBS

** Coffee giant Starbucks SBUX.O, pizza chain Domino's Pizza DPZ.N down as much as 20% and 10%, respectively, over the last three trading sessions since the duties were announced on April 2

** McDonald's MCD.N falls for the second straight session, last down 1.8% at $294.61

** Wendy's WEN.O, Yum Brands YUM.N, U.S.-listed shares of Restaurant Brands International QSR.N down about 1% each

** Olive Garden-parent Darden Restaurants DRI.N and restaurant chain operator Dave & Buster's Entertainment PLAY.O down about 1% each

** S&P 500 Restaurants .SPLRCREST sub-index has fallen 5.6% so far this year, while S&P 500 .SPX index down 14%

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com))

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