That said, analysts recently lowered their estimates for the quarter, according to FactSet data.

It’s not hard to see why retail sales posted a strong year-over-year increase in restaurant spending last month. In March 2021, vaccines were still hard to come by for many, while this year Americans were looking to spend on activities — like restaurants — that were on hold during the pandemic. Higher food prices mean eating out also means spending more.

Still, analysts are cautious for a number of reasons – while the impact of Russia’s invasion of Ukraine has been a concern for international businesses, even domestic restaurants are facing ever-rising inflation, which simultaneously pushed up food prices and labor costs. , and reduced the purchasing power of their customers.

Christopher Carril of RBC Capital Markets on Thursday lowered his estimates for the first calendar quarter by around 5% on average for the group. “At this point, we generally see limited opportunities for upside first-quarter earnings, as we believe restaurant stocks are likely to receive little credit for in-line or better-than-expected results, while earnings losses validate concerns. in the future.”

Aside from actual results, which he says will show strong selling tied to pent-up demand, he thinks investors will focus on the outlook for restaurants, particularly in the second half, and management’s comments on continued health. of the consumer, vis-à-vis the recent price increases.

Still, Carril reiterated outperform ratings on all three stocks, leaving his $2,000 price target on Chipotle unchanged. He lowered his target on McDonald’s to $287 from $303 and on Domino’s to $480 from $525.

Chipotle shares are at $1,480.85, down 15.3% this year. McDonald’s stock is at $250.17, down 6.7% year-to-date. Domino’s recently traded at $378.83, down about 33% year-to-date.

Write to Teresa Rivas at [email protected]