While Wendy’s has done well to magnify its significant menu prowess sufficient to generate a respectable +18% cumulative U.S. comp growth from 2019 – 2022, the chain must continue to work to translate its QSR+ positioning into increased frequency from a higher income demo sufficient to drive a higher check and store level profits.
RR 2023 IHOP Report
IHOP is well positioned as the largest player in the $1B+ family chain segment with 30% market share and the largest marketing budget in the segment. The chain is well known for: an unexpected twist on “all things breakfast, any time of the day”; world famous pancakes; flavored syrups; and the never empty coffee pot
RR 2023 McDonald’s Report
While McDonald’s is well positioned for the long-term with solid execution around sound fundamentals, the current macro environment may prompt its core value-oriented customers to demand more deals and concessions than the system is prepared for.
Jack in the Box 2023
While Jack has done a great job of reviving an iconic West Coast brand in a crowded field, it remains to be seen how the chain’s value equation will fare over the medium-term given a turbulent macro environment amplified through a problematic California lens.
While Chili’s has been able to distinguish itself in a crowded FSR space with an attractive Tex-Mex menu, fun experience, leading value and digital strength, the chain’s immediate challenge is to survive the onslaught of economic pressures on its value oriented customer base.
While Panera is well positioned for the long-term with a healthy halo and digital strength, near-term results may be tempered by the need for more value in a difficult economy and the need for a higher level of labor efficiency to support store-level profitability.
4Q:22 Investor Call Analysis
4Q:22 Investor Call Summary provides a concise analysis of how the $1B+ chains performed including sales, costs & popular promotions.
Restaurant Finance & 2H:22 Valuations
RR’s Finance & Valuation report is based on survey responses (equally weighted) from 60 finance companies including traditional cash flow lenders, sale leaseback companies, SBA lenders and equipment finance companies.
Church’s Texas Chicken 2023
Church’s is executing around a well-conceived strategic plan, the chain’s performance is currently challenged by ongoing inflationary pressures that are particularly hard on its core low income target market.
Sonic & Annual Databook Insights 2023
Sonic enjoys strong brand equity (particularly in core South & Central Plains markets) around its unique drive-in format with car stalls, friendly carhops and a plethora of specialty drinks & frozen treats. While Sonic’s unique positioning provides valuable brand equity, the chain’s prospects will also be a function of the success of its burger repositioning and, likely, the strength of its value equation given the current economic environment.