Second-quarter earnings season is nearly over, and 25 of the 27 restaurant companies included in the index have reported their quarterly results. Nearly half of the restaurants have become less profitable with many suffering from rising overhead costs , in a further sign of an impending recession for the industry , Philip van Dam wrote in MarketWatch . Stifel Nicholaus analyst , John Westra , recently downgraded the restaurants , stating that falling prices are the " canary that lays the recessionary egg , " since historically , restaurants have led the stock market lower ahead of previous financial crises .
Nearly half of the restaurants have become less profitable with many suffering from rising overhead costs , in a further sign of an impending recession for the industry , Philip van Dam wrote in MarketWatch . Stifel Nicholaus analyst , John Westra , recently downgraded the restaurants , stating that falling prices are the " canary that lays the recessionary egg , " since historically , restaurants have led the stock market lower ahead of previous financial crises .