The downturn hit the casual dining and fast-casual segments particularly hard. Shares of Wingstop, Cava, Cheesecake Factory, Shake Shack, and Brinker International each retreated by 4% or more following the release of data from Placer.AI. The firm’s findings suggest that rising inflationary pressures are finally forcing diners to tighten their discretionary budgets.

Contrasting the broader sector decline, Vera Bradley offered a rare note of optimism. Chief Executive Ian Bickley reported that the handbag maker’s turnaround strategy is gaining traction, supported by steady sales growth and a robust back-to-school performance.