BUZZ-US fast-food chains will lean on offers to tap budget diners, Stifel says

Reuters04-11

** Stifel says traffic at U.S. restaurant chains weakened into March, signaling the need for higher promotions to bolster visits and win back lower-income diners

** Analyst Chris O'Cull says quick-service franchises are in a "tough spot" after California's $20-an-hour minimum wage in April, low unemployment levels and pushback on less attractive pricing and offers

** Hikes PT on Chipotle Mexican Grill to $3,270 from $2,700; raises PT on Domino's Pizza to $550 from $500

** CMG, DPZ and Chili's performing well among low-income cohorts owing to their price-value perception and promotional strategy - Stifel

** Estimates that Starbucks is facing some challenges with weaker spending from cash-strapped customers; cuts PT to $90 from $102

** Brokerage sees competition across pizza category to heat up in 2024, with Pizza Hut, Domino's and Papa John's

already running a flurry of promotions on their websites

** So far this year, DPZ stock up 23%, CMG up about 30%, while SBUX and PZZA down 10.5% and 17%, respectively

(Reporting by Savyata Mishra in Bengaluru)

((Savyata.Mishra@thomsonreuters.com))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment