Better Buy: Sweetgreen or Cava?
One of the broadest segments of the consumer discretionary sector is restaurants and fast-food companies. Both of these types of businesses are far from immune to fluctuations in the macroeconomic environment.
Although inflation has cooled down significantly over the past year (to just 3% in June), the outlook for the economy remains an enigma. Moreover, the Federal Reserve's aggressive interest rate hikes have brought the federal funds rate to its highest levels in more than two decades.
Generally speaking, ordering a takeout meal or dining at a restaurant are non-essential purchases. For this reason, during more tumultuous economic times, consumers may be wary to spend on a weekly Friday-night takeout meal, and instead choose to cook at home.
Source Fool.com
