Wingstop’s solution to solving inflation.
Gas prices are playing a huge role in consumer spending as reported by a number of restaurant chains but also most recently by AutoZone.
Gas prices and consumer confidence are directly correlated.
Rent increased +22% for the month of July, the Fed may have to choose between rent controls or rate cuts.
In this issue of our Insights Journal we explore impact of gas hikes on traffic by looking at comp sales correlations and franchisee comments. While the economic data suggests that consumers have some cushion to deal with the gas price shock, franchisees have a different opinion.
Oil prices are rapidly approaching the $100 per barrel marker. We will observe how different corporations are responding to the rapid increase in price, and if there is any incentive for companies to drill for more oil.
• 1Q21 comps were very strong with the $1B+ Chains reporting +10.8% growth on a weighted average basis (+8.5% on a 2-year stacked basis).
• What is notable is how well most of the industry performed since the 1Q20 lockdowns, with 3 QSR segments up double-digits on a 2-year stacked basis during 1Q21.
• While the sit-down chains are getting back to normal, they still have a good bit of lost ground to recover.
RR Insights Journal – January 2021: Manageable 2020 Closure Rates; Silver Lining for Restaurants = Lower Gas Prices; Executive Summaries for KFC & Pizza Hut.
RR’s 3Q:20 Same Store Sales Report provides annual, quarterly & interim sales results for the $1B+ restaurant chains as well as key economic data including retail sales, CPI, gas prices, GDP growth and unemployment rate.
RR’s 1Q:20 Same Store Sales Report provides annual & quarterly sales results for the $1B+ restaurant chains as well as key economic data including retail sales, CPI, gas prices, GDP growth and unemployment rate.