Restaurant and Fitness Stocks Plummet as Middle-Class Consumers Cut Back
Three prominent restaurant and fitness companies - McDonald's (MCD), Planet Fitness (PLNT) and Shake Shack (SHAK) - hit their lowest stock prices in a year on Thursday, May 7th. The declines suggest that middle-income consumers are cutting back on non-essential spending.
The companies' disappointing earnings updates, weaker outlooks, and rising costs all contributed to the sell-off. McDonald's CEO Chris Kempczinski warned that the consumer environment may worsen due to higher fuel costs and broader inflation.
Planet Fitness reported a Q1 revenue of $337.2 million, beating analyst estimates, but its decision to pause planned price increases on its premium membership tier signaled weakening pricing power. The company lowered its 2026 outlook after adding fewer new members than expected in Q1.