Popeye's 2Q19: Key Points

• 2Q19 comps increased +2.9% & corporate reported that its layered offerings are gaining traction (including strength with its Hot Honey Crunch Tenders LTO).
• While its bone-in chicken platform works well for guests coming alone or in small groups, the brand identified a gap in addressing the important family segment in late 2018. Popeye’s has been able to stabilize & then grow this layer in 2Q with deals for larger parties.
• Roll-out of new chicken sandwich across several new markets has generated encouraging initial results with plans for a system-wide roll-out supported by national media.

Outback 2Q19: Key Points

• 2Q19 comps increased +1.3% (-1.6% traffic/+2.9% check) as a -21% y/y decrease in discounting negatively impacted traffic by -1% while helping check & profitability.
• Off-premise sales grew +18% y/y to a 14.1% mix. Frequency & behaviors of off-premises consumers suggest this is a different type of customer with distinct purchasing patterns.
• In-house delivery is available in 494 stores with plans to compliment this platform with an omni-channel 3rd party DSP arrangement that will tap a new customer base.

Dunkin' 2Q19: Key Points

• 2Q19 comps increased +1.7% as ticket growth was partially offset by a traffic decrease. Ticket was driven by: strategic pricing increases; favorable mix shift to premium priced espresso & cold brew beverages; & continued adoption of its Go2s value platform (average ticket of nearly $9 with a 90% attach rate).
• Focus on espresso (10% mix) reflects strategy to expand menu beyond hot & iced drip coffee by maximizing opportunity to market quality espresso at an affordable price (democratization of a premium product).
• On-the-Go ordering increased +30% y/y to 4% of mix (7% of transactions in many urban areas). Multi-Tender payment featured on app in 4/19 eliminates the need to preload with cash.

Taco Bell 2Q19: Key Points

• 2Q19 comps increased +7%, benefitting from a focus on value & innovation which included: $1 Loaded Nacho Taco; $5 Grande Nacho Box (mix peaking at 10%); and the return of Nacho Fries which was supported by its 4th faux movie trailer which broke weekly sales records 2x during the promotion.
• Additional 6MM cars drove through drive-throughs y/y as service speed increased by 7 seconds.

KFC 2Q19: Key Points

• 2Q19 comps increased +2%, reflecting a continued focus on core menu items balanced with an accelerated pace of promotion. The quarter began with innovation with a return of Chicken & Waffles and then the introduction of Cinnabon Biscuits. Value was supported by the launch of A La Carte menu items and 2 for $6 Mix & Match which drove traffic.