US fast-food chains' bets on value meal set to face investor scrutiny
By Savyata Mishra and Juveria Tabassum
July 25 (Reuters) -The performance of McDonald's and other fast food chains' value meal launches will be closely watched when the U.S. restaurants report quarterly results over the next few weeks.
McDonald's MCD.N, Burger King and other chains have been scrambling to improve traffic as soaring menu prices put off diners, especially from the lower-income group.
"The focus will be how consumers are responding to that (value and discounts) and more importantly or equally important, how long these discounts will have to go on for to get consumers back," said BTIG analyst Peter Saleh.
In the past few months, McDonald's extended its $5 value meal into August after its launch in June 25, while rival Burger King began offering a $5 "Your Way Meal" and Wendy's WEN.O rolled out its $3 breakfast deal.
While the promotions are in their early days, some analysts have said their benefit, if any, would be temporary.
"Offering value through promotion is only limited to a couple of items such as McDouble or the McChicken sandwich which are not as enticing as a let's say, a Big Mac or maybe a Whopper Junior from Burger King," said Danilo Gargiulo, senior analyst at Bernstein.
While these offers were rolled out only at the end of the quarter, companies are yet to see meaningful traffic growth.
Foot traffic at McDonald's, Burger King and Wendy's rose 0.4%, 1.6% and 1.4%, respectively, between April and June, as per Placer.ai data.
McDonald's, set to report results on Monday, is expected to post a drop in profit for the first time in six quarters, as well as record slower growth in same-store sales from the prior three months.
Same-store sales at Wendy's, scheduled to report next week, and Burger King owner Restaurant Brands QSR.TO, which reports on Aug. 8, are expected to slow from the levels seen last year.
"The problem in the broader sector right now, is that despite a lot being thrown at consumers, it doesn't seem to be catalysing demand that has been in a rut," Morgan Stanley analyst Brian Harbour wrote in a note.
Spotlight on restaurant visits as eating out spend tempers https://reut.rs/3WBYVSo
McDonald's, Starbucks lagged S&P500 in the past year https://reut.rs/3LCKeID
Reporting by Savyata Mishra and Juveria Tabassum in Bengaluru; Editing by Arpan Varghese and Arun Koyyur
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
