What’s Devouring Restaurant Stocks? The Bite Behind the Decline

Restaurant stocks are getting chewed up—and investors want to know who's eating the profits.

Rising Costs, Shrinking Margins

Supply chain snarls and wage inflation are gutting bottom lines. Consumers are pulling back as discretionary spending tightens. It’s a perfect storm—one that’s left many casual and fast-casual brands scrambling to hold market share.

The Delivery Dilemma

Third-party delivery apps continue to take a juicy cut, leaving restaurants with slimmer margins and less control over the customer experience. Some are fighting back with in-house systems, but scaling that isn’t cheap—or easy.

Changing Tastes

Plant-based? Carb-conscious? Low-waste? Diners are more demanding than ever, and legacy chains are struggling to keep up. Innovation is happening—but not fast enough to satisfy Wall Street’s appetite for growth.

Maybe it’s not what’s eating restaurant stocks—but who. And if you’re looking for a villain, try the hedge funds shorting the sector while preaching long-term value. Classic finance.