"We continue to see a bifurcated consumer base with [quick-service restaurant] traffic from lower-income consumers declining nearly double digits in the third quarter, a trend that's persisted for nearly two years,"
"In contrast, QSR traffic growth among higher-income consumers remains strong, increasing nearly double digits in the quarter."
"We don't want to overstate the challenges of the consumer, but you can look at the data,"
"They're clearly out there, whether it's student loan repayment, consumer sentiment, just the inflationary pressures all around them, whether it's health care cost, housi"
Restaurant chains are experiencing a K-shaped consumer recovery: higher-income customers continue to visit and spend while lower-income consumers significantly reduce dining out. McDonald's reported lower-income quick-service traffic declining nearly double digits for almost two years, even as higher-income QSR traffic increased nearly double digits; U.S. comparable sales rose 2.5% but earnings missed estimates. Cava reported flat foot traffic and 1.9% comparable sales growth, lowering guidance as it struggles to reach younger, financially burdened customers. Factors cited for reduced demand among lower-income and younger diners include student-loan repayments, weak consumer sentiment, inflationary pressures, healthcare and housing costs.
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