Insights

McDonald’s 2024

McDonald’s 2024

McDonald’s enjoys substantial brand equity as the largest and possibly most influential restaurant chain with its “I’m lovin’ it” positioning and iconic brands including the Big Mac, Quarter Pounder, chicken nuggets & fries. While McDonald’s is well positioned in QSR as the go-to brand, the chain may have to make more margin unfriendly price adjustments for its lower-income customers in the near term while it continues its very important work of improving its service speed.

read more
RBI 1Q24 Revenues +9.3% & Operating Income +7.7%; Burger King U.S. Comps +3.9%; Tim Hortons Comps +6.9%; Popeyes U.S. Comps +6.2%; Firehouse Subs U.S. Comps Flat

RBI 1Q24 Revenues +9.3% & Operating Income +7.7%; Burger King U.S. Comps +3.9%; Tim Hortons Comps +6.9%; Popeyes U.S. Comps +6.2%; Firehouse Subs U.S. Comps Flat

Burger King’s results reflect traction from investments in remodels, digital, & equipment. Tim Hortons seeks to improve its afternoon menu offerings, Popeyes is riding the success of its wing platform & Firehouse Subs is making a big push to have a 100% digital mix (currently at 40%) while providing franchisees with incentives to develop new stores.

read more
Starbucks Corporation 2QFY24: Could be Better…

Starbucks Corporation 2QFY24: Could be Better…

Starbucks reported that it continues to feel the impact of a more cautious consumer, particularly as it relates to occasional customer visits during the afternoons & evenings. 2QFY24 results further reflected a deteriorating economic outlook, weak industry traffic & bad weather. Going forward, Starbucks will seek to offer more coffee variety & value to bolster its occasional customer business while seeking to add peak AM capacity.

read more
Subway 2024

Subway 2024

Subway is the largest sub sandwich chain by far and continues to progress with a brand repositioning including a new menu, marketing, and remodel program. While Subway has turned the corner in terms of improving its relevancy and market positioning, the chain has a lot of work to do to improve its unit level economics in a crowded sub sandwich field.

read more
2024 Remodel Report

2024 Remodel Report

A historically slow remodel pace reflects: significantly higher construction & equipment costs; lower store level profitability; and less favorable borrowing terms which has resulted in less than half of system units incorporating the current image.

read more
IHOP 2024

IHOP 2024

IHOP is well positioned as the largest player in the $1B+ family chain segment whose brand awareness reflects its positioning around: an unexpected twist on “all things breakfast, any time of the day”; world famous pancakes; flavored syrups; and the never empty coffee pot. While IHOP’s strategy and execution provide a solid long-term positioning, the potential need to pivot further towards value given the current economic environment could be constrained by the system’s unit level EBITDAR margin which significantly underperforms its own 2015 best.

read more
BurgerFi International, Inc. 4Q23: Revenue -8.3% Y/Y, BurgerFi Comps -10%, Anthony’s Comps -3%

BurgerFi International, Inc. 4Q23: Revenue -8.3% Y/Y, BurgerFi Comps -10%, Anthony’s Comps -3%

Management expects both BurgerFi & Anthony’s will return to positive same-store sales and positive EBITDA growth by 2H24 driven by menu upgrades, an aggressive focus on food cost, and the benefits from an updated POS platform. That would be a welcome relief given the company’s -$14MM 2023 operating income loss and BFI’s -54% 1-year total return through 4/8/24 (leaving the company with a $14MM market cap).  

read more
4Q23 Chain Restaurant Same Store Sales Results

4Q23 Chain Restaurant Same Store Sales Results

The chain restaurants reported solid 4Q23 same store sales comp results which were mostly in-line with the last several quarters. While traffic continues to represent an industry challenge, the chains have been successful in passing through menu price increases while also driving a favorable product mix. Industry players have been mostly successful in offsetting sales weakness from the lower income demo with sales growth from the more affluent. Fortunately, the possibility of interest rate cuts later this year could help spur a rebound in lower income demo spending, providing a boost to the industry, but especially to those chains most oriented towards the less affluent. 

read more
Sonic 2024

Sonic 2024

Sonic Drive-In enjoys strong brand equity (particularly in core South & Central Plains markets) around its drive-in format with car stalls, friendly carhops and a plethora of specialty drinks & frozen treats. While Sonic is executing well around its strong & distinct brand equity while strategically increasing its value game, the opportunity remains for the chain to drive a higher check by increasing its food mix and to improve its new build economics.

read more
Become a Member
NoBull Posts Thumbnail
Restaurant Research

Nobull consumer research weekly

No Bull Economics

Get Corporate & Market Insights in your inbox

Digital Marketing Opportunities
Research Services Banner

A Restaurant Research LLC Company