Analyst: Fast-food sales won't rise until unemployment falls

Several fast-food chains may have to wait until more young men find jobs before seeing same-store sales rise, according to a restaurant analyst.

Jefferies &Co. restaurant securities analyst Jeff Farmer said in a note to investors this week that an analysis of ten years of quarterly same-store sales trends and unemployment data shows that same-store sales for three chains – Jack in the Box, Sonic and Burger King – are the most highly correlated with the unemployment rate. The chain sales dip as unemployment rises, he said.

Farmer also noted that same-store sales at one company – Domino’s Pizza Inc. – actually appear to improve as the unemployment rate rises.