Restaurant Performance Index indicates expansion in May - InvestingChannel

Restaurant Performance Index indicates expansion in May

Here is a minor indicator I follow from the National Restaurant Association: Restaurant Performance Index Remained in Positive Territory in May

Although same-stores sales and customer traffic levels softened somewhat in May, the National Restaurant Association’s Restaurant Performance Index (RPI) remained in positive territory. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 102.3 in May, down 0.4 percent from a level of 102.7 in April. Despite the decline, May represented the 27th consecutive month in which the RPI stood above 100, which signifies expansion in the index of key industry indicators.

“The outlook for the restaurant industry remains positive, as the RPI stood above the 102 level for the 8th consecutive month,” said Hudson Riehle, Senior Vice President of the Research and Knowledge Group for the Association. “A majority of restaurant operators reported higher same-store sales in May, and operators are generally optimistic about an improving business environment in the months ahead.”
emphasis added

Restaurant Performance Index Click on graph for larger image.

The index decreased to 102.3 in May, down from 102.7 in April. (above 100 indicates expansion).

Restaurant spending is discretionary, so even though this is “D-list” data, I like to check it every month. This is another solid reading.

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