** TD Cowen trims PTs on quick-service restaurants like Jack in the Box , McDonald's and Restaurant Brands
, citing a slowdown in customer traffic in 1H24
** Brokerage notes pricing at quick service chains outpaced fast-casual restaurants, while traffic lagged at the former, worsening quick service's exposure to lower-income consumers
** Adds that its survey data suggests middle-income consumers are opting to dine at fast-casual restaurants, given stronger perceptions of "what you get vs what you pay for"
** Brokerage trims PT on MCD to $305 from $325; PT on QSR down to $84 from $90 and JACK's PT cut to $73 from $82
** Points out that market leader MCD has intensified value activity among quick service, leaning into sub-$3 value price points
** Quick service is intensifying focus on value, giving us optimism that quick service traffic can improve in 2H24- analyst Andrew Charles
** So far this year, JACK down ~26%, MCD down ~9% and QSR down about 8%
(Reporting by Savyata Mishra in Bengaluru)
((Savyata.Mishra@thomsonreuters.com))
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