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Monday, December 02, 2013

Restaurant Performance Index increases in October

by Calculated Risk on 12/02/2013 01:59:00 PM

From the National Restaurant Association: Restaurant Performance Index Hit a Four-Month High in October

Fueled by stronger same-store sales and traffic and a more optimistic outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) rose to a four-month high in October. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 100.9 in October, up 0.7 percent from September and the strongest level since June. In addition, the RPI stood above 100 for the eighth consecutive month, which signifies expansion in the index of key industry indicators.

“The RPI’s October gain was driven by broad-based gains in the index components, most notably solid improvements in same-store sales and customer traffic,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.
The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 100.9 in October – up 1.0 percent from a level of 99.9 in September and the highest level in five months.

A majority of restaurant operators reported higher same-store sales in October, and the results were a solid improvement over September’s performance. ... Restaurant operators also reported stronger customer traffic levels in October.
emphasis added
Restaurant Performance Index Click on graph for larger image.

The index increased to 100.9 in October, up from 100.2 in September. (above 100 indicates expansion).

Restaurant spending is discretionary, so even though this is "D-list" data, I like to check it every month.