NRA’s Performance Index Bounces Back In June

The restaurant industry overcame a one-month decline into contraction territory in May and bounced back strongly in June, according to the latest data from the National Restaurant Association’s Restaurant Performance Index. The index surged to 100.6, up 0.8 point from May’s reading. In May, the index had dipped below the 100 value that separates industry expansion from contraction. The June reading is the sixth out of the past seven months the index has been above 100.

“The RPI’s solid improvement in June was due in large part to stronger same-store sales and customer traffic performances, which bounced back from their May declines,” said NRA’s monthly report on the index. The Current Situation same-store sales indicator rose more than two points, while that for traffic gained 1.9 point. The entire Current Situation Index rose 1.4 point to 100.5 as all four indicators that make up the sub-index gained.

The Expectations Index rose only 0.1 point to 100.7, but the markers for both future same-store sales and business conditions improved, after falling the past couple months. The same-store indicator rose 0.4 point and that for future business conditions 0.3 point.

The marker for operators that made a capital expenditure during the past three month was up a strong 0.7 point in June, with 48% of those surveyed making such a purchase, up from 44% in May. The indicator tracking operators planning to make a capital expenditure during the next six months was flat, with 50% planning a purchase, the same percentage as last month.