New Unit Investment Report provides average building cost estimate details (excluding land) for the $1B+ Chains in addition to new store ROI, franchisor incentives, franchise fees and new prototypes.
Dunkin’s famous coffee, donuts & munchkins are legendary in core Northeast markets and the Dunkin’ way (get in, get out & get on your way) is consistent with its famous “America runs on Dunkin'” tagline. Dunkin’ is progressing in its strategy to execute a more upscale repositioning, allowing the chain to tap into the purchasing power of a new, younger clientele to layer onto a stream of sales from the brand’s core base of middle America.
Wendy’s is building upon recent sales strength & a normalizing store-level margin with plans to: improve its corporate efficiency; and return cash to shareholders.
A +10% average menu price increase is far from uniform as evidenced by the analysis of a Sonic drive-thru menu board at the same location one year later. Pricing has become a very sophisticated endeavor with granular changes that vary dramatically.
KFC is a leader in traditional hand-breaded, bone-in Southern fried chicken with considerable brand equity around its Original Recipe seasoning and Extra Crispy option. While KFC’s efforts to improve its relevancy are bearing fruit, the chain must currently deal with material inflationary pressures around chicken prices that are stressing core customers.
Jersey Mike’s is well positioned to continue its outperformance given a reasonably healthy economy by leveraging its core equities around off-premise, a compelling quality/service positioning, a brand commitment to give back to its customers as well as its communities and effective digital/loyalty marketing efforts.
Pizza Hut enjoys substantial scale and strong brand equity as the 2nd largest national player in the $1B+ chain pizza segment by domestic system sales.
While the growing prevalence of tipping bears watching as a method for operators to directly pass along labor cost inflation to the consumer, this may be a positive development as it reinforces higher service standards.
Good Times Restaurants reported that minimal traffic declines at its primarily drive-thru brand are encouraging as consumers seem to be resuming their pre-covid behaviors. However, the corporate also reported that its profitability has suffered because of efforts to prioritize the preservation of its food quality, portion sizes, reasonable pricing & restaurant staffing.
Carrols’ preliminary 4Q22 results demonstrate accelerating fourth-quarter growth for its QSR brands (BK & Popeyes) while Denny’s results reveal a fourth-quarter slowdown for family dining.