WEN - The restaurant sector saw the largest increase in jobs created in September - Gordon Haskett

2023-10-06 15:40:14 ET

There were 336,000 jobs created in September, the largest increase since January, although the unemployment rate came to 3.8%, a bit higher than the consensus estimated, according to Gordon Haskett Research Advisors on Friday.

The employee count increased from 60,700 to almost 12.4M in September.

The food service and drinking places sector payroll count increased by almost 61,000 last month, accounting for 18% of September’s total non-farm payroll increase and surpassing pre-Covid-19 levels.

Wage inflation for the sector, however, decreased 80 basis points to 5.5% in August to $18.03. They were 6.1% and 6.3% in June and July, respectively.

In addition, global franchise stock ( DPZ ), ( WEN ), ( YUM ), ( MCD ) shares were all down 2–3% Friday morning.

“We attribute the lion’s share of this reaction to what a ‘higher for longer’ Fed stance on interest rates will mean for valuation multiples,” the report’s economists wrote.

The Accommodations and Food Service job quit rate increased to 730,000, or 5.1%, in August from 542,000 in July.

More on the Food and Beverage sector:

• McDonald's lands bull rating at Wells Fargo despite gloomy outlook for broad restaurant sector
• Domino's Pizza is a top restaurant sector stock at Oppenheimer
• Denny's: Low Growth Outlook Mostly Justifies Cheap Multiple
• First Watch Restaurant: Positive Takeaways From Recent Developments

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