Cooking at Home And Spending Less On Clothing: How Gen Z's Response to Financial Chaos May Affect Restaurant, Apparel And Retail Stocks
Portfolio Pulse from Nabaparna Bhattacharya
A recent survey by Bank of America reveals that Gen Z individuals are adjusting their spending habits due to rising living costs and economic uncertainty. A significant 73% of respondents have economized on essentials like groceries and fuel, and 43% are cooking at home more. This trend may negatively impact restaurant stocks like McDonald's, Starbucks, and Chipotle. Additionally, 40% of Gen Zers have reduced their clothing expenses, potentially affecting apparel stocks like Nike and Foot Locker. Gen Z's focus on essential items could also impact retail giants like Walmart, Caseys General Stores, and Kroger.

October 14, 2023 | 7:42 pm
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NEGATIVE IMPACT
Caseys General Stores could be negatively impacted by Gen Z's focus on essential items. The stock has fallen 4.81% in one month.
The survey indicates a shift in Gen Z's spending habits, with a focus on essential items. This could lead to decreased revenues for Caseys General Stores.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Chipotle could be negatively impacted by Gen Z's trend of cooking at home more. The stock has fallen nearly 8% in the last month.
The survey indicates a shift in Gen Z's spending habits, with more cooking at home. This could lead to decreased revenues for Chipotle.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Foot Locker could be negatively impacted by Gen Z's trend of reducing clothing expenses. The stock has plummeted 47.59% in the last six months.
The survey indicates a shift in Gen Z's spending habits, with reduced clothing expenses. This could lead to decreased revenues for Foot Locker.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Kroger could be negatively impacted by Gen Z's focus on essential items. The stock has fallen 3.56% in one month.
The survey indicates a shift in Gen Z's spending habits, with a focus on essential items. This could lead to decreased revenues for Kroger.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
McDonald's could be negatively impacted by Gen Z's trend of cooking at home more. The stock has plunged 14.7% in the last six months.
The survey indicates a shift in Gen Z's spending habits, with more cooking at home. This could lead to decreased revenues for McDonald's.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nike could be negatively impacted by Gen Z's trend of reducing clothing expenses. The stock has fallen nearly 20.7% in the last six months.
The survey indicates a shift in Gen Z's spending habits, with reduced clothing expenses. This could lead to decreased revenues for Nike.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Starbucks could be negatively impacted by Gen Z's trend of cooking at home more. The stock has fallen 14.88% in the last six months.
The survey indicates a shift in Gen Z's spending habits, with more cooking at home. This could lead to decreased revenues for Starbucks.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Walmart could be negatively impacted by Gen Z's focus on essential items. The stock has fallen 3.28% in one month.
The survey indicates a shift in Gen Z's spending habits, with a focus on essential items. This could lead to decreased revenues for Walmart.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80