As fast-casual and casual-dining restaurants struggle to draw in patrons, fast-food franchises appear to be the main winners in the fourth quarter and beyond.
Although many publicly listed restaurant businesses have yet to release their most recent quarterly results, for those that have, a trend is beginning to emerge. Consumers cut back on their holiday restaurant spending due to their weariness from inflation, just as they did the same with their shopping. Smart fast-food restaurants drew in customers from all income levels by appealing to those customers with bargain menus and alluring promotions.
During recessions and periods of economic instability, the fast-food business often does better than the rest of the industry.
The fast food behemoth reported that same-store sales in the United States increased by 10.3%, aided in part by lower-income customers coming back more frequently than they had in the previous two quarters.
Domestic same-store sales at Taco Bell surged by 11% thanks to rising morning demand, the reintroduction of Mexican Pizza, and its value meals. While KFC’s sales inched up 1% while facing challenging year-ago comparisons, Pizza Hut’s same-store sales in the US increased by 4%.
Restaurant Brands International, which owns Burger King, is scheduled to release its fourth-quarter results on Tuesday, while Domino’s Pizza will do so on February 23.