Can Toast Thrive in the Restaurant Renaissance?

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 14 July 2025

⏱️ 23 minutes

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Summary

Despite inflation concerns and tariff uncertainty, restaurants are busier than ever. Can it continue? Tim Beyers and Rick Munarriz discuss: - Surprisingly good data from the Restaurant Performance Index. - The metrics that matter when investing in the restaurant sector. - And a Fool’s duel over the future of Toast! Tickers: Companies discussed: CMG, CAVA, TOST, SG, WING Host: Tim Beyers Guests: Rick Munarriz Producer: Anand Chokkavelu Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Are restaurants rising? You're listening to Motley Fool Money.
0:08.9	I'm Tim Byers, senior analyst at Motley Fool Rule Breakers with me.
0:25.2	One of my teammates here, Rick Bionara, is Rick.
0:27.8	We need to talk restaurants because you are the original TMF edible.
0:33.9	I know that you haven't carried that name for years, but if I want to talk restaurants,
0:39.2	I want to talk to you. And we need to talk restaurants today, Rick. And I'm going to hit you with
0:43.9	a lead line that I really want you to dig into. The Restaurant Performance Index, which is something
0:50.3	that tracks overall business at restaurants, was up 0.4% in May.
0:56.2	But this is interesting, Rick.
0:57.8	It's the third consecutive month of increases.
1:01.7	What do you make of this?
1:02.7	Like, we've had weird economic numbers, and yet restaurants are on the rise?
1:08.2	Yeah, again, and it's that unexpected and refreshingly surprising because the year
1:14.1	started off pretty rough. Sweet Green posted their first quarter as a public company with
1:18.7	negative comps. We've had companies like Starbucks. I've had five consecutive quarters of negative
1:23.3	comps, Applebee's, IHop, Papa John's Pizza Pizza Hut, KFC, all these chains have had at least a year,
1:29.7	a quarterly negative comps. It's been a rough time for restaurants. And then you see this. And it's
1:34.3	not just that it was three quarters of positive, the restaurant performance index, is that it
1:39.5	actually clocked in over 100 for the index, which basically signifies expansion, which is actually what you
1:44.6	want, not just a bounce, but expansion. And, yeah, again, it's a matter of will it stick.
1:50.3	And that's the biggest thing because even, even like in the whole story that the Nation's
1:54.8	Restaurant Association put out discussing it, even restaurant owners said, hey, only a third
	...

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