Over the past 60 trading, roughly three months, Darden (DRI), Texas Roadhouse (TXRH), Brinker (EAT), Cheesecake Factory (CAKE), and BJ's Restaurants (BJRI) have gained roughly 62% at the median. Meanwhile, Chipotle (CMG), Wingstop (WING), and Shake Shack (SHAK) have gone essentially nowhere. That 62-percentage-point gap is wider than anything seen from 2016 through 2025, according to Yahoo Finance data.
It reached a record 66 points on Aug. 7, topping the previous high of 50 points set in November 2019. This is not simply a sit-down-versus-fast-food trade. Traditional quick-service names have been much less dramatic.
The biggest divide is between established operators and restaurant concepts investors had been willing to pay more for because of faster growth. The numbers suggest investors are getting pickier about the price of growth. The sit-down group trades at a median forward price-to-earnings (P/E) ratio of 22, compared with 35 for the growth chains.
Those growth chains still boast much faster expected earnings-per-share (EPS) growth, but their same-store sales and recent earnings revisions trail the established group. The winners also have customers showing up. BJ's comparable sales rose 6.5% last quarter from a year ago as traffic jumped 8.3%, marking an eighth straight quarter of sales and traffic growth.
Cheesecake Factory posted 5.8% comparable-sales growth, including 2.7% traffic growth. Wingstop shows the other side. Revenue still rose as the chain expanded, but domestic same-store sales fell 7.5% as transaction volumes declined.
Investors appear to be distinguishing between growth from opening more restaurants and growth from getting more customers into the restaurants already open. The growth chains are hardly broken. Shake Shack still increased revenue 17.2% last quarter while same-store sales rose 3.5%.
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