---
title: "CNBC: Consumers’ Upbeat Mood May Boost Casual Dining Fortunes"
url: https://burnaze.com/article/ed5316e0-b704-46b5-a982-745abfe6b700
source: "1851 Franchise"
original_url: https://1851franchise.com/cnbc-consumers-upbeat-mood-may-boost-casual-dining-fortunes-8157
category: "Casual dining"
industry: "Restaurants"
segment: "Casual dining"
topics: ["Finance & M&A"]
published: 2016-12-01T18:13:15.000Z
modified: 2026-11-01T04:14:12.700Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/829580f81a2558559075369c21184a0a9330.jpg
---

# CNBC: Consumers’ Upbeat Mood May Boost Casual Dining Fortunes

**TL;DR:** A Guggenheim analyst predicts that casual-dining stocks will benefit from consumers' improved mood, while quick-service stocks may struggle due to increased gas prices and rising interest rates. Casual-dining restaurants may see improvements in same-store sales with a moderate increase in consumer confidence.

*originally published in 1851 Franchise on 2016-12-01. [Read the original](https://1851franchise.com/cnbc-consumers-upbeat-mood-may-boost-casual-dining-fortunes-8157).*

## Story

There are already signs that consumers are willing to spend more this holiday season. In a recent article by CNBC, Matthew DiFrisco, a Guggenheim analyst, describes how this improved consumer confidence should have investors leaning towards casual-dining over quick-service dining stocks.

Quick-service burger chains will see the effects of increased gas prices and rising interest rates, which will hurt same-store sales and franchise investment. Franchisees will find it harder to get loans with the higher interest rates and quick-service brands such as McDonald's and Wendy's have 80 percent of their locations franchised.

"[Same-store sales] catalysts more specific to quick service restaurants appear to be decelerating and both brands shares already reflect the successful execution of their strategic restructuring programs," DiFrisco wrote.

On the other hand, the casual-dining sector may not be as harshly affected. With a moderate increase in consumer confidence, casual restaurants are likely to see improvements in same-store sales.

DiFrisco sees delivery as an opportunity for the casual dining space. Close to 25 percent of delivery orders are placed online and online transactions often leads to larger checks. Delivery service providers or operators that offer delivery could stand to benefit from this trend.

## Entities

- 1851 Franchise (publication)
- Restaurants (sector)
- McDonald's (company)
- Wendy's (company)
- casual dining (topic)
- quick service (topic)
- interest rates (topic)
- consumer confidence (topic)
- delivery trend (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/cnbc-consumers-upbeat-mood-may-boost-casual-dining-fortunes-8157). Summarized by Burnaze (https://burnaze.com/article/ed5316e0-b704-46b5-a982-745abfe6b700).