The slowing has just started
Restaurants and bars added just 6,000 jobs during October, or less than a tenth of the hires made in the prior month, according to the latest employment report from the U.S. Bureau of Labor Statistics (BLS). The marked deceleration was part of a slowdown across most sectors of the economy. A total of 261,000 nonfarm jobs were added during October, compared with averages of 407,000 per month year to date in 2022 and 562,000 per month the prior year, BLS said. The national unemployment rate ticked up to 3.7%. The lackluster hiring figures are sure to fuel speculation that the nation is slipping into a recession. BLS noted that hiring in most industry sectors stagnated. The notable exceptions were health care, professional and technical services, and manufacturing. The hours worked by employees in the leisure and hospitality industry, which encompasses restaurants, slipped to 25.6 per week in October, compared with a year-ago average of 26.3 hours. The average hourly wage for the sector inched upward to $20.43. Eating and drinking places ended October with 11.8 million employees. That remains about 500,000 workers short of pre-pandemic employment.
First Watch
LONG BIAS - my bias of being short Casual Dining is keeping me from getting more aggressive. The earnings miss is not positive, but the traffic numbers are impressive. A well-positioned concept.
3Q22 GAAP EPS of $0.00 misses by $0.03, and Revenue of $186.85M (+18.7% Y/Y) beats by $5.72M. Comps +12% vs. FS +9.4% and Traffic +3.7%... Restaurant $184.0M vs. FS $178.3M; Franchise $2.9M vs. FS $2.8M; Food & beverage 24.2% vs. FS 24.4%; Restaurant margin 17.3% vs. FS 18.6% and Adjusted EBITDA margin 9.1% vs. FS 8.9%
BYND
The company needs something positive to talk about on the earnings call.
"Building on the brand's recent launch of Beyond Steak™, the new chicken innovations are the latest additions to Beyond Meat's growing portfolio of delicious, better-for-you, and sustainable plant-based products." BYND launched Beyond Chicken® Nuggets and Beyond Popcorn Chicken™, the latest addition to Beyond Meat's award-winning chicken platform that also includes Beyond Chicken® Tenders. The new plant-based chicken products will launch at more than 5,000 Kroger and Walmart stores nationwide, as well as at select Albertsons and Ahold divisions and other retailers across the country. Crispy, golden brown on the outside and juicy on the inside, Beyond Chicken Nuggets and Beyond Popcorn Chicken satisfy consumers'' craving for delicious chicken options that are better for people and the planet. The two new products offer nutritional benefits like having 14g of plant-based protein derived from a blend of faba bean and pea, 50% less saturated fat than a leading brand of traditional breaded chicken nuggets, 0mg of cholesterol, and no added antibiotics, hormones or soy1. Beyond Chicken Nuggets come pre-cooked and can be conveniently made in the air fryer in under 5 minutes, offering parents a delicious, quick, and lunchbox-friendly option that kids will love. Beyond Popcorn Chicken is a bite-sized party favorite made easy that goes from freezer to plate in just a few minutes in the air fryer.
