Yum Brands Inc.’s Pizza Hut and Taco Bell are enjoying strong demand from consumers amid concerns about inflation, according to foot-traffic data from analytics company Placer.
Pizza Hut is enjoying significant success, with third-quarter visits up 6.4% year-over-year, while Taco Bell visits increased 3% over the same period, Placer.ai said. However, Yum! Brands’
YUM,
+0.87%
KFC saw visits drop 2.9% year-over-year in the third quarter, although this followed two big increases in the first and second quarters.
In a report Placer.ai explained that Pizza Hut has been enjoying success by keeping its finger on the pulse of what consumers want, citing the company’s moves to extend late-night hours at thousands of U.S. locations and diversify its product selection.
Related: Inflation rises faster than expected, Fed’s preferred PCE price tracker shows
Yum Brands reports third-quarter results before market open Wednesday. Analysts surveyed by FactSet are looking for earnings of $1.27 a share and sales of $1.772 billion. Shares of Yum! Brands rose 0.01% in premarket trades Wednesday. The stock is down 6.4% in 2023, compared with the S&P 500 index’s
SPX
gain of 8.5%.
Placer.ai has also released a report on foot traffic to Restaurant Brands International Inc.’s
QSR,
+1.20%
Popeyes and Burger King. During the third quarter, Popeyes saw visits increase 0.3% year-over-year, outpacing chicken chains overall, which saw visits decline 0.8%, according to Placer.ai. Third-quarter visits to Burger King fell 1.1% year-over-year, but outpaced burger chains overall, which saw traffic decline 2.5%.
“With the exception of KFC, the five brands analyzed between the two reports largely saw successful quarters relative to their specific dining segments,” said Placer.ai, in a statement. “While consumers have been bitten by inflation, it’s clear there’s still an appetite for fast food and QSR [Quick Service Restaurant] chains.”
Related: Pizza Hut to extend late-night hours to midnight or later at thousands of U.S. locations
Restaurant Brands International reports third-quarter results on Nov. 3. Analysts surveyed by FactSet are looking for earnings of 85 cents a share and sales of $1.867 billion. Shares of Restaurant Brands International are down 0.4% in premarket trades Wednesday. The stock is up 2.7% in 2023.
Fast-food restaurant giant McDonald’s Corp.
MCD,
+0.28%
reported better-than-expected third-quarter results before market open Monday. Earlier this month, McDonald’s stock suffered its longest weekly losing streak in four years amid consumer-spending worries.
However, McDonald’s and rival Chipotle Mexican Grill Inc.
CMG,
+1.48%
are outperforming the broader dining sector, according to recent foot-traffic data from Placer.ai. Last week Chipotle kicked off restaurant earnings season with strong third-quarter results.
McDonald’s set up well for 2024 as digital sales, restaurant growth, ramp up: Wells Fargo
McDonald’s stock is up 0.8% in premarket trades Wednesday, and is down 1.3% in 2023. Shares of Chipotle are down 0.1% premarket and up 37.6% this year.
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