Michael M. Santiago
The restaurant sector saw sharp drops on Thursday as the reverberations from the Federal Reserve's hawkish position on monetary policy continue to hit pockets of retail.
A combination of interest rate shock, recession worries, and a flight-to-quality has led to one of the worst sessions in a few weeks for restaurant names. While the Federal Reserve kicked off the negative vibe on Wednesday by signaling a longer trajectory for higher interest rates than investors had priced in - the actions of other global central banks to raise rates, a strengthening U.S. dollar, and the expectation for pressure on consumer discretionary spending has contributed to additional pressure for restaurant stocks on Thursday.
Notable decliners included Shake Shack (SHAK) -7.85%, Cheesecake Factory (CAKE) -7.24%, Dine Brands Global (DIN) -7.13%, Sweetgreen (SG) -6.95%, Noodles (NDLS) -4.85%, Chipotle (NYSE:CMG) -4.55%, and Starbucks (SBUX) -4.23%.