Restaurant CEOs are focusing on value to attract customers back amid declining sales

From CNBC: 2024-08-11 08:00:01

Restaurant CEOs are emphasizing “value” to investors as sales lag. Prices for food away from home have risen 27.2%, causing a decline in traffic and sales. Chains like McDonald’s, Burger King, and Taco Bell are offering discounts to attract customers back. Chipotle is focusing on value amid portion size complaints.

McDonald’s CEO admits the chain’s value reputation has weakened. The $5 Meal Deal was successful, so it’s extended with franchisee collaboration. Chipotle sees strong sales growth but faces portion size criticism. Other chains like Applebee’s and IHOP report surprise sales declines due to value-driven customers.

Restaurant stocks have fallen as investors worry about industry health. Discount deals can hurt profitability despite attracting customers. The value wars between chains intensify these concerns. Despite this, discounts are bringing customers back. Burger King and Chipotle see success with $5 meal deals.

Value conversation among restaurant executives benefits customers and shareholders. Despite concerns about profitability, value deals draw in customers. Burger King and Chipotle see positive results with $5 meal offerings. Discounts are seen as a way to improve overall value perception in the industry.



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