Grill masters stocking up for their Memorial Day cookout were in for a rude awakening at the checkout counter this year. The price of soft cushy hamburger buns? Up 13%. Those beloved briny pickles that complete any burger worth scarfing down? Tack 14% onto last year's price. And don't even get me started on ketchup. A 32-ounce bottle would've set you back nearly 28% more than it did in 2022. Source: Axios That's right: Despite cooling inflation rates for food-at-home purchases, data from the Bureau of Labor Statistics shows grocery bills are still shaking out 7% higher than a year ago. And LikeFolio data proves those costly trips to the market are still taking their toll on consumers, with food price concern mentions remaining 191% higher on a two-year basis. But as expensive as those DIY Memorial Day hamburgers might've been – that's nothing compared to the sticker shock of grabbing one at a sit-down restaurant right now. For the first time in this post-pandemic inflationary economy, restaurant menu prices are running hotter than grocery prices at an even greater 9% year-over-year increase, according to BLS data: Source: BLS Look, if I'm gonna pay up for a meal out, I don't just want quality food – I want innovative menu offerings, tasty beverages, and most of all, stellar service. And it's not just me. Fed up with high menu prices, consumers are getting picky about where they dine out. And certain brands simply aren't making the cut anymore. Words like "overpriced," "undercooked," and "slow service" are becoming more common in social media discussions around a handful of staple restaurant chains. At the same time, many of these names have seen their stock prices rally by double-digits over the last year. But our forward-looking consumer data shows trouble brewing in the restaurant industry. And investors that buy into the hype on these "overcooked" restaurant stocks may get burned... Click here to continue reading |
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