The latest round of earnings results for U.S. fast-food chains showed that consumers have shown a willingness to continue spending despite a rise in menu prices.
Wingstop led the charge with a 20.15 rise in same-store sales over the first quarter, while McDonald’s, Starbucks, and Subway each saw a rise of 12.6%, 12%, and 11.7% respectively. Chipotle, Shake Shack, and Taco Bell saw a rise in same-store sales as well.
BTIG managing director Peter Saleh claimed that this rise is a welcome surprise to many investors who would have expected rising prices to deter consumers.
Papa John’s CEO Rob Lynch stated during a call with investors that consumers have been shifting towards prioritizing value over saving money. “We’re definitely entering into a period if we’re not already all the way there…value is going to become more important than it has been over the last 3 years and so it’s critical for us to have a compelling and successful value strategy.”
YUM! Brands CEO David Gibbs claimed that his company tends to “flourish” in tough times, especially because of consumers’ gravitation towards value rather than price points. YUM! Brands own multiple fast food franchises including Taco Bell, KFC, and Pizza Hut.