Restaurant stocks could get jolted by an upcoming Supreme Court ruling
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Concern is growing in the restaurant sector over the implications of more than 40M Americans now on the schedule to restart making federal student loan payments in late August under the terms of the debt ceiling deal approved by Congress last week.
While the Supreme Court has yet to rule on the presidentâs debt cancellation proposal in a pending case, the Education Department has warned borrowers will fall behind on their loans at historic rates if the loan forgiveness plan is ruled unconstitutional. 
Analysts think the millions of borrowers who have yet to make a single student loan payment are at the most at risk of cutting back on some discretionary spending due to personal budget shock. Amid ongoing price inflation in the restaurant sector, there is rising anxiety restaurant sales could face a noticeable headwind in Q3 and Q4.
The SCOTUS decision is expected within a few weeks. Fast-food chains and fast-casual names with a higher than average mix of customers under the age of 30 include McDonald's (MCD), Yum! Brands (YUM), Restaurant Brands International (NYSE:QSR), Noodles (NDLS), Jack in the Box (JACK), Wendy's (WEN), Potbelly (PBPB), Chipotle (CMG), Domino's Pizza (DPZ), Papa John's International (PZZA), and Wingstop (WING). To a lesser extent, Starbucks (SBUX) could also be impacted if borrowers are pressed to cut back.
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