From CNBC: 2024-05-01 16:00:01

Fast-food chains like Starbucks, Pizza Hut, KFC, and McDonald’s see shrinking same-store sales due to consumer pullback, competition for value-minded diners, and increasing prices. Wingstop, Chipotle, and Popeyes see rising same-store sales thanks to loyal customers. Industry-wide, low-income consumers are cutting back on quick-service restaurant visits due to budget concerns.

Despite efforts like value deals and promotions, fast-food chains continue to struggle with declining sales, driven by consumer caution in spending post-stimulus. McDonald’s, Yum Brands, and Starbucks report challenges in luring customers back, with plans for value menus and promotions to drive sales. Franchisees express concerns over profitability in competitive markets. McDonald’s facing pressure from Burger King’s stronger sales growth in the last quarter.

Executives like Wingstop CEO Michael Skipworth and Yum CEO David Gibbs implement strategies like value offers and emphasizing value leadership to drive sales growth. Fast-food chains explore ways to appeal to price-conscious consumers, including nationwide value menus and value deals. Companies like Starbucks invest in app upgrades and new product lines to attract customers and boost sales.



Read more at CNBC: Starbucks, McDonald’s, Yum earnings show consumers pulling back