Barclays Highlights Fast Casual Dining Strength Amid US Restaurant Market Growth

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Barclays has recently adjusted its ratings for US restaurants, highlighting the strength of the fast casual dining sector. Analyst Jeff Bernstein maintained a buy rating for First Watch Restaurant (FWRG.US) but adjusted the target price from $21 to $18. This move reflects Barclays' ongoing confidence in the growth potential of fast casual dining, despite some adjustments in specific price targets.

The fast casual restaurant market in the US is projected to grow significantly, with estimates suggesting an increase of USD 65.2 billion from 2024 to 2028. This growth is driven by several factors, including the sector's ability to adapt to changing consumer preferences and economic conditions. The fast casual segment has shown resilience, with a steady increase in consumer spending on prepared food and non-alcoholic beverages, projected to reach $921.7 billion in 2025.

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Barclays' recent report also indicates a recovery in retail and enduring entertainment sectors, which are expected to support consumer spending on dining out, including restaurants, cafes, and bakeries. This trend is likely to benefit fast casual dining establishments that offer a balance of convenience, quality, and affordability.

In summary, Barclays' recent rating adjustments underscore the robust performance and growth potential of the fast casual dining sector in the US, driven by strong consumer spending and market expansion.