Thursday, March 31, 2011

Restaurant Performance Index increases in February

by Bill McBride on 3/31/2011 08:11:00 PM

Earlier:
Kansas City Manufacturing Survey at Record High, Chicago PMI Strong in March
Employment Situation Preview: More Jobs, but still Grim

This is one of several industry specific indexes I track each month.

Restaurant Performance Index Click on graph for larger image in graph gallery.

The index increased to 100.7 in February indicating expansion.

Unfortunately the data for this index only goes back to 2002.

From the National Restaurant Association: Restaurant Industry Outlook Improved in February as Restaurant Performance Index Stood Above 100 for the Fifth Time in Six Months

The National Restaurant Association’s Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.7 in February, up 0.4 percent from its January level. In addition, February represented the fifth time in the last six months that the RPI stood above 100, which signifies expansion in the index of key industry indicators.

“February’s RPI gain was driven by solid improvements in the same-store sales and customer traffic indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Restaurant operators reported positive same-store sales and customer traffic results in February, after January’s results were dampened by extreme weather conditions in many parts of the country.”

“In addition to improving sales and traffic indicators, restaurant operators’ outlook for capital spending hit a 40-month high, while their expectations for staffing growth rose to the highest level in nearly four years,” Riehle added.
...
Restaurant operators reported a solid improvement in same-store sales in February. ... Restaurant operators also reported a net increase in customer traffic levels in February.
...
Bolstered by an improving sales outlook, restaurant operators’ plans for capital spending rose to its highest level in 40 months. ... For the fifth consecutive month, restaurant operators reported a positive outlook for staffing gains in the months ahead.
Increased traffic and sales, and a positive outlook for capital spending and hiring ... a solid report. Also, February was a record high sales month for the restaurant industry.