U.S. restaurant spending accelerated in August, rising 3.7% year-over-year, up from 2.5% in July, as consumers returned to both chain and independent establishments, according to Bank of America’s latest aggregated credit and debit card data.
The uptick signals renewed momentum in the sector after several months of slower growth, driven by a broad-based recovery across income levels and regional markets.
Chain restaurants narrowed their decline to just 0.9% from a 2.9% drop in July, while independent eateries posted stronger growth, climbing to 5.3% from 4.3%. Segment-level trends were mixed.
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Quick-service restaurants, including McDonald’s (NYSE:MCD), Wendy’s (NASDAQ:WEN), and Restaurant Brands International (NYSE:QSR), excluding pizza, remained in negative territory at -1.3%, though the rate of decline eased from July’s 2.9% contraction.
Pizza restaurants such as Domino’s (NYSE:DPZ), Papa John’s (NASDAQ:PZZA), and Yum! Brands’ Pizza Hut (NYSE:YUM) also improved, with spending down 2.8% compared with 4.8% the previous month.
Fast-casual dining establishments like Chipotle Mexican Grill (NYSE:CMG) and Shake Shack (NYSE:SHAK), which emphasize made-to-order meals, nearly returned to growth, with declines slowing to 0.6% from 2.6%.
Casual dining chains, including Darden Restaurants (NYSE:DRI), Brinker International (NYSE:EAT), and Texas Roadhouse (NASDAQ:TXRH), rebounded into positive territory, rising 2.4% after a 1.1% contraction.
Specialty coffee chains, particularly small to mid-sized operators, continued to outperform, surging 16.7% following a 14.3% gain in July.
Shifts in consumer behavior were evident in channel trends. Brick-and-mortar spending strengthened to a 2.5% year-over-year increase from 1.0% in July, reflecting rising foot traffic, while online orders showed a slight deceleration to 8.6% growth from 8.7% in July, though they remain well ahead of in-person sales.
Income analysis indicated broad-based gains. Households earning $50,000–$125,000 led with a 7.4% increase, followed by high-income consumers over $125,000 at 5.8%, and lower-income households under $50,000 at 4.2%.
Notably, online spending was especially strong among middle- and lower-income groups, growing more than 11%, compared with 8.5% for higher earners.
Regional disparities persisted, with Cleveland posting the highest growth at 8.3%, while Denver lagged at 2.9%, underscoring the role of local economic conditions and consumer confidence.
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