NRA’s Performance Index Pushed 1.1 Point Higher In December

After a disappointing fall-back in November, the Restaurant Performance Index maintained by the National Restaurant Association posted a strong 1.1 point gain in the December survey, moving to 101, clearly ahead of the 100 point that marks the difference between industry expansion and contraction. The index has shown gains for three of the past four months, since passing the 100 mark in September. All eight components of the index were higher, including both capital purchasing markers.

The Current Situation Index rose a full point to 99.7, led by a 1.7 point gain in the same-store sales indicator and a 1.9 point jump in customer traffic. The Expectations Index rose 1.2 points to 102.4, as the same-store sales component jumped 1.9 points and the expected business conditions marker rose 1.5 points.

The component tracking operators that made a capital purchase during the past three months held relatively steady and was up only 0.1 point; 41% of operators reported such a purchase, the same percentage as November.

Those planning a capital purchase during the next six months rose 0.6 point, as the indicator hit the 100 tipping point for the first time since February 2008. The percentage of operators planning a capital buy reached the 50% mark for the first time since then. The percentage was up from 47% in November.