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With Americans spending less money on eating out last month, McDonald’s and other fast-food company stocks slumped, holding back The Dow Jones industrial average. While McDonald’s was the biggest decliner, others chains followed suit, including Buffalo Wild Wings, Burger King and Wendy’s.
An Associated Press news report yesterday morning said that the slump in those fast-food companies stocks “keeps any chance of a Dow record in the bag.”
The Dow Jones industrial average shed 35.79 points to close at 13,982.91. The Dow has gained 6.7 percent this year and is just 182 points below the record close of 14,164 it set in October 2007.
Analyst Bryan Elliott at Raymond James was quoted saying, “Consumer spending is coming under pressure. It's the easiest way to save money, stay at home and cook."
Investors are concerned that Americans will spend less on eating out following a rise in Social Security taxes and higher taxes in consumer paychecks starting this year. Government reports also show retail sales growth slowed to 0.1 percent in January, from 0.5 percent increase last December.
President Obama announced in his State of the Union address on Tuesday that his administration was focused on strengthening the economy and creating jobs. But the AP report stated,
Although the economy is healthier than it was four years ago, growth remains slow and unemployment high.