A McDonald’s restaurant near Times Square, NYC on July 29th, 2023.
Adam Jeffery | CNBC
Restaurant companies navigating some of the same challenges in the second quarter fell into two categories: winners and losers.
Some chains said their higher menu prices alienated diners, while others said consumer behavior hasn’t changed even as their food and drinks grow more expensive. Promotions drove customers to certain restaurants — or fell flat as diners focused on value. And low-income customers visited some restaurants more frequently, but skipped visits at other eateries.
Broadly, foot traffic to restaurants has fallen. Sales growth has slowed as many eateries hold off on another round of the price hikes that drove strong revenue a year ago. Customers have become more selective about how they spend their money, including where they eat, leading to a sharpening divide in chains’ performance.
While most restaurant companies crushed earnings expectations, a number of them fell short of…
2023-08-18 13:51:08
Source from www.cnbc.com