Washington, D.C. — “Fueled by solid same-store sales and traffic results and a bullish outlook among restaurant operators, the National Restaurant Association’s Restaurant Performance Index (RPI) rose sharply in December. The RPI – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 102.2 in December, up 1.6 percent from November and its highest level in nearly six years. In addition, December represented the third time in the last four months that the RPI stood above 100, which signifies expansion in the index of key industry indicators.

The Current Situation Index, which measures current trends in four industry indicators (same-store sales, traffic, labor and capital expenditures), stood at 102.1 in December – up a solid 1.9 percent from November and its strongest level in seven years (see chart above).

The Expectations Index, which measures restaurant operators’ six-month outlook for four industry indicators (same-store sales, employees, capital expenditures and business conditions), stood at 102.3 in December – up 1.3 percent from November and its highest level in a year. In addition, December marked the fourth consecutive month that the Expectations Index stood above 100, which represents a positive outlook among restaurant operators for business conditions in the months ahead.”

MP: All three indexes: the current situation index, the expectations index, and the overall performance index are now at levels above pre-recession levels, and the current situation is at the highest level in seven years.  The rebound in the performance of America’s restaurants in recent months to levels not seen since 2005-2007 shows that there are some underlying strengths in the U.S. economy.  Based on the elevated level for the expectations index, we can expect continued improvements for the restaurant industry in 2012.  

Go to Source