--- title: "Casual Dining Restaurants Industry" description: "31 SEC filers are classified under the Standard Industrial Classification code that describes the casual dining restaurants industry." canonical: https://www.getswoopr.com/stocks/industries/consumer-discretionary/casual-dining-restaurants/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Casual Dining Restaurants Industry ## Direct Answer 31 SEC filers are classified under the Standard Industrial Classification code that describes the casual dining restaurants industry, and their latest annual reports show $114.3 billion of combined revenue and a median operating margin of 4.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Casual dining restaurants offer table service meals at moderate prices, earning from food and beverage sales and operating many company-owned locations. Traffic, check size and labor cost drive profit. The first numbers to compare across companies here are same-restaurant sales, traffic and check and restaurant-level margin. ## Key Industry Metrics - **Same-restaurant sales**: Sales growth at restaurants open at least a year. It excludes new openings and shows whether existing locations are drawing more spending, which can come from price or visits. - **Traffic and check**: Number of guest visits and average amount spent per check. Price increases lift check, so falling traffic with rising check suggests customers are being pushed away. - **Restaurant-level margin**: Profit at the restaurant before corporate costs, as a share of sales. It shows the health of the unit model after food, labor and occupancy costs. - **Labor and food cost**: Cost of ingredients and staff as shares of sales. These are the largest costs, so inflation not offset by menu prices or efficiency appears here first. - **Unit growth**: Growth in the number of restaurants. New units add sales but need capital, and slower openings can reflect saturation or reluctance to invest. ## Primary Macro Drivers - **Consumer discretionary spending**: Eating out at table-service restaurants is optional, so household budgets influence traffic and check. - **Food and labor inflation**: Ingredients and wages are the largest costs, so inflation moves restaurant-level margin if menu prices lag. - **Menu pricing and promotions**: Price increases lift check but can reduce traffic, while promotions do the opposite; same-restaurant sales show the balance. - **Competition from fast casual and delivery**: Cheaper, quicker alternatives draw occasions away, requiring value offers and affecting traffic. ## Major Risks - **Traffic declines**: Fewer visits reduce sales and spread fixed costs thinly, so margin falls; check traffic and check separately. - **Wage and commodity inflation**: Rapid rises in staff pay or ingredients squeeze margin faster than menu price changes can respond. - **Competition**: Rival chains and local restaurants compete for the same meal occasions, limiting pricing power; watch traffic versus peers. - **Lease obligations**: Long leases create fixed commitments that remain even if units perform poorly; watch lease liabilities and closure charges. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Medium | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | U.S. | ## Casual Dining Restaurants Filers in the SEC Record 31 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 5812. Their latest fiscal years end between 2025 and 2026, and together they reported $114.3 billion of revenue. Median revenue growth over the prior year was 4.4%. Median operating margin was 4.1% and median net margin 1.6%. Median total liabilities were 69% of total assets, and 18 of 31 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Mcdonalds Corp](https://www.getswoopr.com/stocks/companies/mcdonalds/) | $26.9 billion | 3.7% | 46.1% | 31.9% | FY 2025 | | [Aramark](https://www.getswoopr.com/stocks/companies/aramark/) | $18.5 billion | 6.4% | 4.3% | 1.8% | FY 2025 | | [Darden Restaurants Inc](https://www.getswoopr.com/stocks/companies/darden-restaurants/) | $13.2 billion | 9.4% | 12.0% | 9.1% | FY 2026 | | [Chipotle Mexican Grill Inc](https://www.getswoopr.com/stocks/companies/chipotle-mexican-grill/) | $11.9 billion | 5.4% | 16.2% | 12.9% | FY 2025 | | [Yum China Holdings, Inc.](https://www.getswoopr.com/stocks/companies/yum-china-holdings-inc/) | $11.8 billion | 4.4% | 10.9% | 7.9% | FY 2025 | | [Yum Brands Inc](https://www.getswoopr.com/stocks/companies/yum-brands/) | $8.2 billion | 8.8% | 31.3% | 19.0% | FY 2025 | | [Texas Roadhouse, Inc.](https://www.getswoopr.com/stocks/companies/texas-roadhouse-inc/) | $5.9 billion | 9.4% | 8.1% | 6.9% | FY 2025 | | [Bloomin' Brands, Inc.](https://www.getswoopr.com/stocks/companies/bloomin-brands-inc/) | $4.0 billion | 0.1% | 0.9% | 0.2% | FY 2025 | The 8 largest of 31 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Casual Dining Restaurants guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Consumer Discretionary - [Consumer Discretionary sector overview](https://www.getswoopr.com/stocks/industries/consumer-discretionary/) - [Child Care Services](https://www.getswoopr.com/stocks/industries/consumer-discretionary/child-care-services/) - [Casinos](https://www.getswoopr.com/stocks/industries/consumer-discretionary/casinos/) - [Coffee Shops](https://www.getswoopr.com/stocks/industries/consumer-discretionary/coffee-shops/) - [Building Products Distribution](https://www.getswoopr.com/stocks/industries/consumer-discretionary/building-products-distribution/) - [Collectibles Retail](https://www.getswoopr.com/stocks/industries/consumer-discretionary/collectibles-retail/) - [Broadline Retail](https://www.getswoopr.com/stocks/industries/consumer-discretionary/broadline-retail/) - [Commercial Vehicle Manufacturers](https://www.getswoopr.com/stocks/industries/consumer-discretionary/commercial-vehicle-manufacturers/) - [Brand Licensing & Management](https://www.getswoopr.com/stocks/industries/consumer-discretionary/brand-licensing-and-management/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Casual Dining Restaurants industry? Key performance indicators for the Casual Dining Restaurants industry include: Same-restaurant sales, Traffic and check, Restaurant-level margin, Labor and food cost, Unit growth. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Casual Dining Restaurants industry? The Casual Dining Restaurants industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Casual Dining Restaurants industry? The primary risks for Casual Dining Restaurants companies include: Traffic declines, Wage and commodity inflation, Competition, Lease obligations. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).