BUZZ-TD Cowen trims PTs of quick-service restaurants on slowing customer traffic

Reuters04-12

** 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))

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