Everyone is talking about the Republican tax reform plan, but within that discussion, one sector is being forgotten as a beneficiary. That sector is restaurants, which stand to gain from the tax reform plan in a major way. The biggest winner will not be giants like McDonalds, or Darden, but rather small to medium size operators. The sector as a whole pays a 28% tax rate, so a 21-22% rate would be a major win for many.
FINSUM: There are some big exceptions to the point that smaller operators will gain. In particular, Starbucks would see up to a 22% combined earnings benefit from the cuts.