U.S. fast-food chains cut discounts, push pricy meals post-pandemic

NEW YORK - Restaurant chains including McDonald's Corp and KFC are paring back $5-and-under "value" items in favor of more expensive $10-to-$30 combination meals, a strategy employed to lift sales and profits and offset rising food costs as the U.S. economy reopens.

So far, the chains' trade-up tactic is working, helping lift comparable sales at limited-service restaurants by 11.5% this May compared to the same month in 2019, according to data from Black Box Intelligence. Profit margins are also up at several major chains. Wendy's Co said it pioneered the value menu in 1989, when it dedicated part of its menu board to 99-cent items. But today, Wendy's is "trading folks up into our best, highest-quality food items," said Chief Executive Officer Todd Penegor during a May earnings call with analysts, "and we'll continue to do that.

Franchisees typically try to maximize profits, said Credit Suisse analyst Lauren Silberman. When commodity costs are as high as they have been over the past year, franchisees discount less to maintain profitability. Many chains increased their U.S. margins during the pandemic, including McDonald's and Yum Brand's Taco Bell, she said.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

1 bottle of this ‘Wonder Water’ is sold every minute — it’s only $5 on Prime DayThe popular hair treatment definitely lives up to its name. Tried it didn't work never going to believe it hoe did you get them fake photos
Source: TODAYshow - 🏆 389. / 55 Read more »

Cristiano Ronaldo Snub Causes $5 Billion Drop In Coca-Cola Market ValueSoccer star Cristiano Ronaldo removed two bottles of Coca-Cola from a table and opted for water during a Euro 2020 press conference, causing the market value of Coca-Cola to drop by $5 billion in less than a week. What do you think? Nestle approves this massage. Well they don’t call him the goat for no reason - most marketable sportsperson in the worldttttttt 🔥 CR is the global G.O.A.T
Source: TheOnion - 🏆 724. / 51 Read more »

McDonald's and other fast-food chains slash dollar menus, push pricey 'family' meals'I've never seen consumers less price sensitive than they are today,' one fast-food franchisee said.
Source: NBCNews - 🏆 10. / 86 Read more »

Billboard Dance Emerging Artists June 2021: Elkka, Tibasko & MoreThese are the four emerging dance acts whose music has helped pushed us across the post-pandemic finish line this month. Are they actually learning moves and steps and not just shaking their as! ?
Source: billboard - 🏆 112. / 63 Read more »

Do We Really Want Fashion to 'Go Back to Normal?'In the post-pandemic rush, we're giving up the sartorial freedoms many of us found in lockdown. Up to Date...
Source: ELLE Magazine (US) - 🏆 472. / 51 Read more »

Soho House Seeks Post-Pandemic Comeback With IPOThe members-only chain of luxury clubs is looking to go public in New York.
Source: Forbes - 🏆 394. / 53 Read more »