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Motley Fool Money

What’s Eating at Restaurant Stocks?

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 18 August 2025

⏱️ 16 minutes

🧾️ Download transcript

Summary

Summer is heating up, but restaurant stocks are cooling down. Today on Motley Fool Money, Rick Munarriz, with analysts Alicia Alfiere and Jason Hall will dig into problems at your favorite chains. There’s also a look at some companies reporting earnings this week and it’s report card time for some of this year’s biggest gainers.They unpack: Three companies worth watching are reporting earnings this week. Sluggish comps at many leading restaurants. A few unexpected stocks have more than doubled this year. Can they keep the upticks coming? Companies discussed: CMG, CAVA, WING, SG, MCD, TJX, VIK, BIDU, CELH, RBLX, PLTR Host: Rick Munarriz, Jason Hall, Alicia Alfiere Producer: Anand Chokkavelu Engineer: Dan Boyd, Natasha Hall 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. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. 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

Indigestion for stocks.

0:07.8

Interesting companies reporting earnings this week.

0:10.2

Incredible gains this year from unlikely companies.

0:13.3

Let's dive in to find out right now on Motley Full Money.

0:20.7

I'm Rick Minars, and today I'm joined by fellow analysts Alicia Alfieri and Jason motley full money.

0:25.7

I'm Rick Minars, and today I'm joined by fellow analysts Alicia Alfieri and Jason Hall with a look at what's eating at restaurant stocks this summer. We'll also look at some of the more

0:29.7

surprising companies that have more than doubled this year. But first, it's still earning season.

0:35.4

A lot of familiar names are stepping up with fresh financials this week. A lot of obscure ones, too, of course. I want to go around the room to see if there's a company that has your eye, if not your heart, reporting quarterly results this week. Let's start with you, Jason. Yeah, so TJX companies, it's definitely got my eye, a little bit of my heart, but none of my wallet yet because of valuation. But TJX companies, it's a parent company of TJ Max, Marshalls, home goods, other clothing and home furnishing retailers,

0:58.0

reports Wednesday morning. And I'll be honest with you, Rick. I think besides Costco,

1:01.9

TJX may be the best retailer in the U.S. It is exceptional.

1:06.7

It's two really important things. The one that doesn't get enough credit from the average

1:10.4

person or investor is how good of a buyer it is. It's like the release valve for excess inventory for manufacturers, other retailers and distributors. It's really good at getting great deals on the cost side of buying that. But here's the thing. The actual hardest part is getting that merchandise in the right stores and the right markets to move it quickly and then turn it into more cash than it paid for it.

1:30.3

It's exceptional if that part of its business model is the treasure hunt experience.

1:36.3

They cater both to people that have plenty of extra disposable income that are looking for

1:41.0

that great deal, but also just the regular people that are looking

1:44.5

for value for name brand products at extremely low costs. And that combined expertise is a savvy

1:50.0

buyer and extremely efficient retail operator results in great margins. It keeps customers coming in

1:56.9

across economic environments. If you look, last quarter, comps were up 3%.

2:01.5

As customers are spending more money, you look at most of the competition and discount retail.

2:05.9

You see the other thing, comps are shrinking, people are coming in less and spending less.

2:09.3

I'm really interested to see if TjX can continue in operating so well in what's really a challenging

2:15.9

environment for discount retail.

...

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