Restaurant Research’s Unit Economic Dashboard for June 2024

Jun 11, 2024 | Dashboard, Restaurant Research

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1Q Average Store-Level Margin Was 4th Highest in 3 Years

  • The average company owned unit-level margin for the $1B+ public chains improved +0.5% y/y to 18.0% during 1Q24, reflecting lower food costs (-1.1%) partially offset by higher labor (+0.3%).
  • This represented the fourth best quarterly results since 1Q21, exceeding the 17.2% average and in-between the 20% high in 2Q21 & the 14.9% low in 1Q22.

Sales & Op. Margin ($1B+ Public Chains) Graph

Performance of Public Co. Owned Stores Chart

2024 Commodity Outlook

  • The RR Commodity Cost Index was favorable during the first 4 months of 2024 with mostly deflationary results.
  • However, there is a wide dispersion between ingredient categories as outlined in the bottom table, with wings doubling during the YTD period ending 5/31/24 while potato prices have halved.
  • Operators are relying on favorable food prices given their FY24 focus on providing price value in order to regain traffic from lower-income consumers.

RR Commodity Cost Index Graph

Key Cost Trends Chart

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