Restaurant stocks slump as Trump's tariffs raise recession fears

Shares of restaurant companies fall as President Donald Trump's hefty tariffs on several countries raised fears of a recession and sparked a global markets sell-off

UBS analysts say direct cost impact of tariffs on restaurants manageable, but see bigger risk as incremental pressure on consumer spending and industry demand

Incremental industry traffic and sales challenges are possible over the coming quarters; focused on consumer sentiment and spending patterns, including whether lower-income consumers exhibit incremental caution and if pressures spread to higher-income cohorts - UBS

Coffee giant Starbucks SBUX.O, pizza chain Domino's Pizza DPZ.N down as much as 20% and 10%, respectively, over the last three trading sessions since the duties were announced on April 2

McDonald's MCD.N falls for the second straight session, last down 1.8% at $294.61

Wendy's WEN.O, Yum Brands YUM.N, U.S.-listed shares of Restaurant Brands International QSR.N down about 1% each

Olive Garden-parent Darden Restaurants DRI.N and restaurant chain operator Dave & Buster's Entertainment PLAY.O down about 1% each

S&P 500 Restaurants .SPLRCREST sub-index has fallen 5.6% so far this year, while S&P 500 .SPX index down 14%