NRA’s Performance Index Rose In November

The National Restaurant Association’s Restaurant Performance Index rose again in November, hitting a five-month high at 101.2. The Index declined over the summer, prompted in part by worries about the impending federal-government shutdown and debt-ceiling fight. Six of the index’s components moved higher. Only current capital spending activity and the staffing outlook were lower. All eight components were above the 100 level that separates expansion from contraction for the first time since June.

The indicators for current same-store sales and profits rose 0.4 and 0.8 points respectively, with the labor component also rising 0.6 point. These improvements offset a 0.6 point decline in the marker tracking capital spending during the past three months, though that indicator, at 100.8, remained above the tipping point, with 54% of operators reporting they made a capital buy. The overall Current Situation Index rose 0.3 point to 101.2.

The Expectations Index rose 0.2 point to 101.1. Operators surveyed were moderately more optimistic about the outlook for same-store sales and business conditions during the next six months. And 55% of respondents plan to make a capital buy during the period, with that marker rising 0.3 point to 101.

The complete report on the RPI is available at restaurant.org/Pressroom.”””