Why Restaurant Stocks Have Gone Bad

In this episode of Motley Fool Money, Travis Hoium leads Lou Whiteman and Rachel Warren in a discussion about the recent downturn in restaurant stocks, focusing on Cava and Chipotle. The conversation explores the factors contributing to this trend, including changing consumer tastes, inflation, and the broader macroeconomic environment. They analyze Cava's slowing traffic and lowered sales guidance, debate whether its Mediterranean menu has national appeal, and assess its growth potential. The panel also examines Chipotle's negative same-store sales, the impact of CEO Brian Niccol's departure, and whether the company can regain its growth trajectory. They further discuss the outperformance of full-service restaurants compared to fast-casual establishments, the shift in consumer spending habits, and the potential of Toast, a technology company benefiting from restaurant trends. Finally, each panelist shares which restaurant stock they would buy today, considering the current discounts and future prospects.