A more optimistic outlook for U.S. restaurant sector sales into 2025 is anticipated, driven by expected improvements in the U.S. macro backdrop and industry environment. Many companies should see margin improvements in 2025 due to benign food inflation. Key variables will include traffic, while challenges may arise from reduced pricing, ongoing labor inflation, and elevated discounting activity.

Expectations are set for the company to aim for 2025 comparable growth in the low single-digit-plus range, with expansion in the mid-teens-plus range fostering mid teens-plus revenue growth. Given relatively modest comparative metrics and a valuation that is no longer excessive compared to high-growth counterparts, the company's shares are anticipated to continue outperforming in 2025.

Yum! Brands, described as a large-cap idea with low investor enthusiasm, is expected to showcase an above-average rebound in same-store sales in 2025. This outlook reflects a financial model that might surpass the performance of its global counterparts. Darden has reportedly experienced a notable increase following its December earnings report, led by impactful catalysts and favorable comparisons, coupled with projections of earnings outperformance amid modest expectations. For Shake Shack, the strategy implemented by its new management is viewed as a potentially undervalued catalyst, offering several untapped opportunities for sales and margin improvements.