Excluded from the feast: Restaurant stocks have been overlooked in the AI-driven surge.

Restaurant Sector Performance: Restaurant stocks have significantly underperformed compared to broader retail, with declining traffic and same-store sales, while costs remain high, leading to pressure on profit margins.

Consumer Behavior Shift: Consumers are increasingly favoring value-oriented dining options and at-home meals due to affordability concerns, making restaurant concepts appear more cyclical and less stable to investors.

AI Adoption Challenges: The impact of AI on restaurant chains has been less pronounced compared to other retail sectors, with limited benefits in e-commerce and operations, resulting in a lukewarm reception from analysts and investors.

Stock Performance Variability: While many restaurant stocks have declined sharply, some companies like Brinker International, Yum! Brands, Dutch Bros, and McDonald's have seen positive growth, contrasting with the overall negative trend in the sector.