Consumer Stocks Fall as Inflation Woes Grow — Consumer Roundup

Rising oil prices pressured inflation expectations higher, bringing in question the resilience of the American consumer -- and weakening stocks in the consumer sector.

Darden Restaurants said higher food and labor costs weighed on profit in the latest quarter, more than offsetting continued sales growth. The restaurant operator said operating costs in its fiscal first quarter rose 6.5% to $2.88 billion. Chief Financial Officer Raj Vennam said that food expenses rose, because most of the company's sales growth came from its brands with higher-than-average food and beverage costs. Quarterly sales climbed 5.1% to $3.2 billion, roughly in line with Wall Street estimates.

Amazon.com, already one of the world's biggest robot makers, is scaling up production as it automates more of the work inside its warehouses. The e-commerce company said it would spend more than $100 million on a new robotics-manufacturing facility in Greenwood, Ind., which is set to open by 2028.

Starbucks plans to close around 250 underperforming cafes across North America this week, the latest move under Chief Executive Brian Niccol to streamline and boost the profitability of its operations. The closures mark the second round of cafe cuts under Niccol, who joined the coffee giant in September 2024.

The Arnault family set out a plan to simplify the structure of the companies that hold LVMH in a move designed to secure the clan's long-term control over the luxury-goods giant. Under the plan, two holding companies controlled by the family of LVMH boss Bernard Arnault will be merged into another holding, Christian Dior SE, which will be delisted from the Paris stock exchange.

Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

September 24, 2026 17:58 ET (21:58 GMT)