Recent Posts

Restaurant Inflation Gap to Grocery Inflation Shrinks a Little

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +2.4% in June — sequentially +20 basis points higher than May’s +2.2%. This +2.4% number compares with price for food-away-from-home (restaurants) that increased by +3.8% year-over-year in June (sequentially the same as May’s +3.8%) This marks the 27th month in a row for which restaurant pricing is outpacing grocery/supermarket pricing.

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8:54 AM

Kalinowski Restaurant Industry Same-Store Sales Index for Q2 Leaves a Lot to be Desired

With this report, we update our data-driven Kalinowski Restaurant Industry Index for Q2 2025 to +0.7%. This is sequentially improved from Q1 2025’s -0.4% result, which was the weakest non-pandemic quarter of the last 10+ years. However, +0.7% is nothing to get excited about, to be sure. For one thing, the Q1 2025 result was weather-impacted (particularly from a cold/snowy February). The Q2 2025 number was not weather-impacted to any material degree. So, when one excludes the effects of February weather, the Q2 2025 same-store sales trends for the industry were very similar to those of Q1 2025.

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7:00 AM

Updating our Q2 Kalinowski Quick-Service Pizza Same-Store Sales Index (7/7/2025)

With this report, we update our data-driven Kalinowski Quick-Service Pizza Index for Q2 to -0.6%. Comparing to Q2 2019 levels — a pre-pandemic basis — the Kalinowski Quick-Service Pizza Index for Q2 2025 is at +17.5%. Our -0.6% figure is based on our latest proprietary checks/data as regards same-store sales performance for this segment during April, May, and June.

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7:00 AM

Updating our Q2 Kalinowski Quick-Service Other Same-Store Sales Index (7/2/2025)

With this report, we update our data-driven Kalinowski Quick-Service Other Index for Q2 to +2.4%. Comparing to Q2 2019 levels – a pre-pandemic basis — the Kalinowski Quick-Service Other Index for Q2 2025 is at +30.4%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during April, May, and June.

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7:00 AM

Updating our Q2 Kalinowski Casual Dining Same-Store Sales Index (7/1/2025)

With this report, we update our data-driven Kalinowski Casual Dining Index for Q2 to +5.1%. On a pre-pandemic basis, the Kalinowski Casual Dining Index for Q2 2025 is at +37.4%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during April, May, and early-to-mid June.

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7:00 AM

Updating our Q2 Kalinowski Family Dining Same-Store Sales Index (6/25/2025)

With this report, we update our data-driven Kalinowski Family Dining Index for Q2 to up by +0.6%. Comparing to Q2 2019 levels — a pre-pandemic basis — the Kalinowski Family Dining Index for Q2 2025 is at +0.1%. This is the lowest such number of any major U.S. restaurant industry segment. Our latest numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during April, May, and early-to-mid June.

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7:00 AM

Updating our Q2 Kalinowski Fast-Casual Same-Store Sales Index (6/24/2025)

With this report, we update our Kalinowski Fast-Casual Index for Q2 to -1.6%. Comparing to Q2 2019 levels — a pre-pandemic basis — the Kalinowski Fast-Casual Index for Q2 2025 is at +54.5%. This +54.5% figure is the best of any major restaurant sector. Our latest fast-casual numbers are based on our proprietary checks/data as regards same-store sales performance for this segment during April, May, and early June.

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7:00 AM

Updating our Q2 Kalinowski Quick-Service Burger Same-Store Sales Index (6/17/2025)

With this report, we update our data-driven Kalinowski Quick-Service Burger Index for Q2 to +0.2%. Comparing to Q2 2019 levels — a pre-pandemic basis — the Kalinowski Quick-Service Burger Index for Q2 2025 is at +26.1%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during April, May, and early June.

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4:54 PM

Restaurant Inflation Gap to Grocery Inflation Narrows a Bit

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +2.2% in May — sequentially +20 basis points higher than April’s +2.0%. This +2.2% number compares with price for food-away-from-home (restaurants) that increased by +3.8% year-over-year in April (sequentially down by -10 basis points from April’s +3.9%). This marks the 26th month in a row for which restaurant pricing is outpacing grocery/supermarket pricing.

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8:52 AM

Wendy’s, Taco Bell, and Bojangles: Drive-Thru AI Mystery Shop Results

While drive-thru AI order-taking technology is presently in its infancy, we expect it to continue to grow significantly in coming years. Eventually, AI order-taking should become the standard at the drive-thru in a majority of quick-service restaurants… although it will admittedly take quite a few years to get there.

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7:00 AM

Quick-Service Restaurants: California Unit Growth Plans for 2025 vs. 2024 & 2023

California infamously raised its minimum wage for most quick-service/fast-casual employees to $20 per hour as of April 1, 2024. The bill containing this provision – AB1228 — was signed into law on September 28, 2023. As such, restaurant concepts only had about three months’ worth of official advance notice as regards their unit-opening plans for 2024. There has been much more advance notice — in addition to several months’ worth of operating results — as regards plans to 2025. So, we ask: To what extent, if any, did all this affect unit-growth plans for California in 2025?

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7:00 AM

Burger Sector: What Same-Store Sales Trends Hint at re: Average Unit Volumes (5/22/2025)

McDonald’s, Wendy’s, and Burger King (owned by Restaurant Brands International [QSR; Not Rated]) each recently reported their Q1 2025 U.S. same-store sales. In this report, we discuss how these same-store sales results — and potential results for full-year 2025 — relate to these three concepts’ average unit volumes (AUVs). We further discuss what this means for the companies, and their stocks.

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7:00 AM

Pizza Sector: What Sales Trends Hint at re: Average Unit Volumes (5/20/2025)

Recently, Domino’s, Pizza Hut (owned by Yum Brands [YUM; Neutral, $149.65]), and Papa Johns all reported their Q1 2025 U.S. same-store sales. In this report, we discuss how these same-store sales results — and potential results for full-year 2025 — relate to these three concepts’ average unit volumes (AUVs). We further discuss what this means for the companies, and their stocks.

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7:00 AM

Restaurants: Market Share vs. Grocery Stores Sets New All-Time High in April

Data out today from the U.S. Census shows that restaurants’ market share (with grocery stores/supermarkets making up the other component) was 56.6% in April 2025. This is not only +30 basis points sequentially higher than the March 2025 market-share figure of 56.3%, but it also represents a new all-time high for the restaurant industry for any month.

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9:47 AM

Restaurant Inflation Gap to Grocery Inflation Widens to Largest Gap So Far in 2025

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +2.0% in April — sequentially -40 basis points lower than March’s +2.4%. This +2.0% number compares with price for food-away-from-home (restaurants) that increased by +3.9% year-over-year in April (sequentially up by +10 basis points from March’s +3.8%). This marks the 25th month in a row for which restaurant pricing is outpacing grocery/supermarket pricing.

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12:34 PM

Restaurants: Industry Takes Some Market Share from the Grocery/Supermarket Industry in March

Data out today from the U.S. Census shows that restaurants’ market share (with grocery stores/supermarkets making up the other component) was 56.3% in March 2025. This is only -20 basis points below the all-time high of 56.5%, set in November 2024. The March 2025 data also shows a +20 basis-point sequential advance in market share from February 2025.

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9:23 AM

Kalinowski Restaurant Industry Same-Store Sales Index for Q1 Starts 2025 with Another Whimper

With this report, we update our data-driven Kalinowski Restaurant Industry Index for Q1 2025 to +0.5%. This is sequentially a little worse than Q4 2024’s +0.8% result, neither of which were all that encouraging. Excluding pandemic-hit quarters, Q1 2025 is the second-worst quarter since Q4 2016’s weak +0.6% showing. At least over Q2-Q4 2025, the industry will be lapping weak numbers, and not having to deal with as much winter/cold weather as it did in Q1 2025. That said, it’s clear that Q1 2025 dealt with much more than challenging weather.

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7:00 AM

Restaurant Inflation Gap to Grocery Inflation Lowest Since March 2023

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +2.4% in March — sequentially +50 basis points higher than February’s +1.9%. This +2.4% number compares with price for food-away-from-home (restaurants) that increased by +3.8% year-over-year in March (sequentially up by +10 basis points from February’s +3.7%). This marks the 24th month in a row for which restaurant pricing is outpacing grocery/supermarket pricing.

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8:52 AM

Updating our Q1 Kalinowski Family Dining Same-Store Sales Index (4/9/2025)

With this report, we update our data-driven Kalinowski Family Dining Index for Q1 to down by -0.9%. Comparing to Q1 2019 levels — a pre-pandemic basis — the Kalinowski Family Dining Index for Q1 2025 is at +6.6%. This is the lowest such number of any major U.S. restaurant industry segment. Our latest numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during January, February, and March.

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7:00 AM

Updating our Q1 Kalinowski Quick-Service Other Same-Store Sales Index (4/8/2025)

With this report, we update our data-driven Kalinowski Quick-Service Other Index for Q1 to +3.8%. Comparing to Q1 2019 levels – a pre-pandemic basis — the Kalinowski Quick-Service Other Index for Q1 2025 is at +28.9%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during January, February, and March.

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7:00 AM

Updating our Q1 Kalinowski Casual Dining Same-Store Sales Index (4/2/2025)

With this report, we update our data-driven Kalinowski Casual Dining Index for Q1 to +4.2%. On a pre-pandemic basis, the Kalinowski Casual Dining Index for Q1 2025 is at +29.4%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during January, February, and March.

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7:00 AM

Updating our Q1 Kalinowski Quick-Service Pizza Same-Store Sales Index (4/1/2025)

With this report, we update our data-driven Kalinowski Quick-Service Pizza Index for Q1 to 0.0%. Comparing to Q1 2019 levels — a pre-pandemic basis — the Kalinowski Quick-Service Pizza Index for Q1 2025 is at +18.2%. Our 0.0% figure is based on our latest proprietary checks/data as regards same-store sales performance for this segment during January, February, and early-to-mid March.

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7:00 AM

Updating our Q1 Kalinowski Quick-Service Burger Same-Store Sales Index (3/27/2025)

With this report, we update our data-driven Kalinowski Quick-Service Burger Index for Q1 to -1.6%. Comparing to Q1 2019 levels — a pre-pandemic basis — the Kalinowski Quick-Service Burger Index for Q1 2025 is at +27.8%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during January, February, and early-to-mid March.

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7:00 AM

Updating our Q1 Kalinowski Fast-Casual Same-Store Sales Index (3/26/2025)

With this report, we update our data-driven Kalinowski Fast-Casual Index for Q1 to +2.3%. Comparing to Q1 2019 levels — a pre-pandemic basis — the Kalinowski Fast-Casual Index for Q1 2025 is at +55.8%. This +55.8% figure is the best of any major restaurant sector. Our latest fast-casual numbers are based on our proprietary checks/data as regards same-store sales performance for this segment during January, February, and early-to-mid March.

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7:00 AM

Restaurant Inflation Posts Largest Sequential Rise Since March 2023

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +1.9% in February — sequentially the same as January’s +1.9%. This +1.9% number compares with price for food-away-from-home (restaurants) that increased by +3.7% year-over-year in February (sequentially up by +30 basis points from January’s +3.4%). This marks the 23rd month in a row for which restaurant pricing is outpacing grocery/supermarket pricing. We would also note that the +30 basis-point sequential gain for restaurant pricing is the largest such sequential gain since a +40 basis-point move back in March 2023.

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8:58 AM

Pizza Sector: Examining Customer Satisfaction and Speed of Service by Brand

Intouch Insight recently published its “2025 Pizza Delivery and Carryout Study.” In this publication, the results from mystery shoppers in late 2024 at 12 leading pizza purveyors were examined. These brands include Domino’s (DPZ; Buy, $440.03), Pizza Hut (owned by Yum Brands [YUM; Neutral, $158.09]), and Papa Johns (PZZA; Buy, $48.97) – the publicly-traded pizza concepts that rank #1, #2, and #4 in terms of domestic systemwide sales within the pizza sector. In general, this report from Intouch Insight is the most comprehensive report of its type that we have come across in our 25+ years of researching the restaurant industry. Today, we look at results from the Intouch Insight report in the critical areas of Overall Satisfaction by Brand, Satisfaction with Speed of Service by Brand, and Total Time by Brand.

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7:00 AM

Restaurants: Market-Share Gains Resume, at the Expense of Groceries and Supermarkets

Data out today from the U.S. Census shows that restaurants’ market share (with grocery stores/supermarkets making up the other component) was 56.4% in January 2025. This matches the all-time high, previously also set in November 2024. The January 2025 data marks a sequential reversal from December 2024, which is the only month in which the restaurant industry ceded market share to the grocery industry since pandemic-affected February 2021.

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9:10 AM

Restaurant Inflation Back to Historical Average for First Time Since Mid-2021

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +1.9% in January — sequentially up by +10 basis points from December’s +1.8%. This +1.9% number compares with price for food-away-from-home (restaurants) that increased by +3.4% year-over-year in January (sequentially down by -20 basis points from December’s +3.6%). This marks the 22nd month in a row for which restaurant pricing is outpacing grocery/supermarket pricing. However, the gap between grocery pricing and restaurant pricing in January 2025 was the smallest since April 2023’s -150 basis-point gap.

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9:02 AM

Kalinowski Restaurant Industry Same-Store Sales Index for Q4 Ends 2024 with a Whimper

With this report, we update our data-driven Kalinowski Restaurant Industry Index for Q4 2024 to +0.7%. While this is sequentially a little better than Q3 2024’s +0.2% result, it’s still not all that encouraging. Excluding pandemic-hit quarters, all four quarters of 2024 are the worst such quarters since Q4 2016’s weak +0.6% number. At least in 2025, the industry will be lapping weak numbers throughout the year.

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7:00 AM

Updating our Q4 Kalinowski Casual Dining Same-Store Sales Index (1/21/2025)

With this report, we update our data-driven Kalinowski Casual Dining Index for Q4 to +2.7%. On a five-year (pre-pandemic) basis, the Kalinowski Casual Dining Index for Q4 2024 is at +28.1%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during October, November, and December.

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7:00 AM

Restaurants: Growth in U.S. Industry Spending Remained Sluggish in December

Data out today from the U.S. Census shows that restaurants’ market share (with grocery stores/supermarkets making up the other component) was 56.1% in December 2024. This is only -30 basis points below the all-time monthly high for the domestic restaurant industry in this regard. But, the year-over-year gain was actually not a gain at all, as the December 2023 market share was 56.3% — restaurants lost about -20 basis points of market share in December 2024 year-over-year. This is the first month in which restaurant lost market share since the pandemic-affected February 2021.

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9:15 AM

Pricing Gap in Favor of Grocery Stores over Restaurants Continues to Narrow

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +1.8% in December — sequentially up by +20 basis points from November’s +1.6%. This +1.8% number compares with price for food-away-from-home (restaurants) that increased by +3.6% year-over-year in December (sequentially equal to November’s +3.6%). This marks the 21st month in a row for which restaurant pricing is outpacing grocery/supermarket pricing. However, the gap between grocery pricing and restaurant pricing in December 2024 was the smallest since April 2023’s -150 basis-point gap.

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8:54 AM

Updating our Q4 Kalinowski Quick-Service Pizza Same-Store Sales Index (1/8/2025)

With this report, we update our data-driven Kalinowski Quick-Service Pizza Index for Q4 to +0.5%. Comparing to Q4 2019 levels — a five-year (pre-pandemic) basis — the Kalinowski Quick-Service Pizza Index for Q3 2024 is at +17.5%. Our +0.5% figure is based on our latest proprietary checks/data as regards same-store sales performance for this segment during October, November, and December.

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7:00 AM

Updating our Q4 Kalinowski Quick-Service Burger Same-Store Sales Index (1/7/2025)

With this report, we update our data-driven Kalinowski Quick-Service Burger Index for Q4 to +0.5%. Comparing to Q4 2019 levels — a five-year (pre-pandemic) basis — the Kalinowski Quick-Service Burger Index for Q4 2024 is at +32.0%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during October, November, and December.

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7:00 AM

McDonald’s (MCD) and Yum Brands (YUM): A Simple Investment Strategy (Updated 1/6/25)

In the past, we’ve sometimes remarked to buysiders that it wouldn’t be a bad investment strategy — when choosing between large-cap restaurant stocks McDonald’s and Yum Brands — to simply pick the one with the more attractive (i.e., lower) valuation. In that frame of mind, we published note examining this simple strategy back on January 8, 2023 and on January 7, 2024. With this note, we take an updated look at that approach as a possible simple investment strategy.

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7:00 AM

McDonald’s (MCD) and Yum Brands (YUM): A Simple Investment Strategy (Updated 1/6/25)

In the past, we’ve sometimes remarked to buysiders that it wouldn’t be a bad investment strategy — when choosing between large-cap restaurant stocks McDonald’s and Yum Brands — to simply pick the one with the more attractive (i.e., lower) valuation. In that frame of mind, we published note examining this simple strategy back on January 8, 2023 and on January 7, 2024. With this note, we take an updated look at that approach as a possible simple investment strategy.

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7:00 AM

Updating our Q4 Kalinowski Quick-Service Other Same-Store Sales Index (12/24/2024)

With this report, we update our data-driven Kalinowski Quick-Service Other Index for Q4 to +2.0%. Comparing to Q4 2019 levels — a five-year (pre-pandemic) basis — the Kalinowski Quick-Service Other Index for Q3 2024 is at +19.2%. These numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during October, November, and early-to-mid December.

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7:00 AM

Updating our Q4 Kalinowski Fast-Casual Same-Store Sales Index (12/23/2024)

With this report, we update our data-driven Kalinowski Fast-Casual Index for Q4 to +6.3%. Comparing to Q4 2019 levels — a five-year (pre-pandemic) basis — the Kalinowski Fast-Casual Index for Q4 2024 is at +44.7%. This +44.7% figure is the best of any major restaurant sector. Our latest fast-casual numbers are based on our proprietary checks/data as regards same-store sales performance for this segment during October, November, and December.

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7:00 AM

Updating our Q4 Kalinowski Family Dining Same-Store Sales Index (12/19/2024)

With this report, we update our data-driven Kalinowski Family Dining Index for Q4 to +0.3%. Comparing to Q4 2019 levels — a five-year (pre-pandemic) basis — the Kalinowski Family Dining Index for Q4 2024 is at +4.7%. This is the lowest such number of any major U.S. restaurant industry segment. Our latest numbers are based on our latest proprietary checks/data as regards same-store sales performance for this segment during October, November, and early-to-mid December.

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7:00 AM

Restaurants: Growth in U.S. Industry Spending Lowest Since February 2021

Data out today from the U.S. Census shows that restaurants’ market share (with grocery stores/supermarkets making up the other component) was 56.3% in November 2024. This is only -10 basis points below the all-time monthly high for the domestic restaurant industry in this regard. But, the year-over-year gain was less than +10 basis points, marking the lowest year-over-year rise in share for the restaurant industry since February 2021.

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9:29 AM

Pricing Gap in Favor of Grocery Stores over Restaurants Narrows Considerably

The latest Consumer Price Index (CPI) data shows that prices for food-at-home (grocery stores and supermarkets) rose by +1.6% in November — sequentially up by +50 basis points from October’s +1.1%. This +1.6% number compares with price for food-away-from-home (restaurants) that increased by +3.6% year-over-year in November (sequentially down by -20 basis points from October’s +3.8%). This marks the 20th month in a row for which restaurant pricing is outpacing grocery/supermarket pricing. However, the gap between grocery pricing and restaurant pricing in November 2024 was the smallest since April 2023’s -150 basis-point gap.

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8:58 AM

Quick-Service: What Concept has the Next Large Breakfast Opportunity?

Over the last 10-15 years, multiple large restaurant concepts have launched a breakfast daypart in the U.S., with varying degrees of success (or lack of it). These concepts include three of the largest (top-ten sized) U.S. restaurant concepts, Taco Bell (4th-largest domestic restaurant concept, as ranked by U.S. systemwide sales), Burger King (7th-largest), and Subway (8th-largest). Which brings us to the question: which large, quick-service restaurant concept that doesn’t currently have a meaningful breakfast business, might have the courage one day to launch a breakfast business?

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7:00 AM

Pizza Sector: What Sales Trends Hint at re: Average Unit Volumes (11/21/2024)

Recently, Domino’s, Pizza Hut (owned by Yum Brands [YUM; Neutral, $132.88]), and Papa Johns all reported their Q3 2024 U.S. same-store sales. In this report, we discuss how these same-store sales results — and potential results for full-year 2024 — relate to these three concepts’ average unit volumes (AUVs). We further discuss what this means for the companies, and their stocks.

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7:00 AM
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