Hudson Riehle Strong Quotations

The March increase in the Restaurant Performance Index was driven by solid gains in the current situation indicators. Nearly two-thirds of restaurant operators reported a same-store sales gain in March -- the strongest performance in 15 months. Restaurant operators also reported increased capital expenditure activity, which bodes well for both the restaurant industry and the overall economy.

Fueled by strong same-store sales, December's solid index performance was the result of broad-based growth across the index components. Three out of five restaurant operators reported a same-store sales gain in December -- the strongest level in 12 months. In addition, the Expectations Index posted its fourth consecutive monthly increase, which points toward growth in sales, staffing levels and capital expenditures during the next several months.

The November performance of the Restaurant Performance Index is a positive sign for the restaurant industry heading into the new year. Of particular note is restaurant operators' optimistic outlook for the overall economy, which rose to its strongest level in nine months.