RR Roundtable Discussion: 2Q18 Results




  • It’s all about value even as CPI price increases outdistanced comps (+1.8% comp average for $1B+ chains) during the quarter.
  • Results were supported by a turn-around in casual chains (Applebee’s, Outback & Olive Garden) which are executing well around compelling value, improved quality & execution and better access (to-go which further improves value by eliminating tip). Better loyalty programs also offer more customized, relevant value offers.
  • On the QSR side, chains with value at every price point, starting with $1, did the best. This includes MCD’s 1,2,3 menu; Taco Bell’s $1 Nacho Fries; and BK’s $1.69 10 piece chicken nuggets.


Source: Quarterly Concept & Comp Update Reports (click for outlines)

  • But even with offers at the dollar level, the QSR chains continue to struggle with driving traffic. This suggests that there is more to the story than simply low price points and the chains may benefit from more innovation to better balance their promotional focus on value.



Source: RR Menu & Promotions Report (click for outline)

  • ‚ÄčIt is possible that today’s definition of value includes more than just low entry points, but also quality, innovation and convenience for higher-end consumers in a bifurcated market.




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Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research® LLC believes to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without notice and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. Restaurant Research’s analysis and opinions are not a guarantee of the future performance of any company or individual franchisee.  RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this report available, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to provide an overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound business judgment. Copyright 2018.


1Q18 Results



4Q17 Results


3Q17 Results