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There are signs that the U.S. consumer is still spending, especially on experiences. But stubbornly high prices are squeezing consumers with lower incomes, pressuring everyday purchases and corporate profits. Broadly speaking, credit card companies like American Express, Visa and MasterCard have described spending trends as "relatively strong," "relatively stable," and even "healthy." Priceline parent Booking Holdings told analysts there are no signs consumers are taking shorter vacations or trading down in their hotel choices. McDonald's added that "the consumer is certainly being very discriminating in how they spend their dollar."
Persons: Brandon Bell, Morgan Stanley's Michael Wilson, Morgan Stanley, Mike Stocker, Stanley Black, Decker, , Anton Pinsky, Beata Zawrzel, Laxman Narasimhan, Shack, Domino's, Pavlo Gonchar Organizations: Getty, Home Depot, Walmart, American Express, Visa, MasterCard, PayPal, Booking Holdings, Las, Port, Tribune, Service, Consumers, Whirlpool, Corp, Starbucks Corp, Nurphoto, Lightrocket Locations: Austin , Texas, U.S, Las Vegas, Port of Miami, Krakow, Poland, Russia, Ukraine
I tried Red Lobster's family taco meal deal for $30 — it was not enough to feed my family of four. Red Lobster's family taco meal deal Had I not added fries and biscuits, I think my family would've been hungry later that night. As far as family-style meal deals from chain restaurants go, this one was not worth the price. AdvertisementMany chain restaurants, from Panera Bread to IHOP , have been adding family-style meal deals to their menus. So, instead of cooking dinner on Taco Tuesday, I headed to seafood chain Red Lobster to try its family taco meal deal.
Persons: Organizations: Service, Taco
Fast food has become increasingly expensive — and some consumers are changing their spending habits because of it. Fast-food chains such as Chick-Fil-A and Taco Bell are included in the limited-service meals and snacks category in the consumer price index report, which shows prices are up nearly 28% from 2019 to 2023. The full-service meals and snacks category, which covers sit-down restaurants with servers, meanwhile, has increased about 24% and overall CPI was up by about 19% in the same time period. "There were increased commodity costs. "But what continues to be ahead of historical averages is the increase in labor costs that restaurants are seeing."
Persons: Taco Bell, We've, Stephens, Jim Salera, McDonald's Organizations: Yum Brands, KFC, Taco Bell Locations: California
How fast food got so expensive
  + stars: | 2024-05-04 | by ( Ryan Baker | Natalie Rice | Jeniece Pettitt | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow fast food got so expensiveSticker shock is making customers think twice about their favorite fast-food chains. McDonald's and Yum Brands, which owns KFC, Taco Bell and Pizza Hut, missed analyst estimates in their 2024 first-quarter earnings. The limited-service restaurant category saw prices rise more than 46% over the course of the past decade, according to the U.S. Bureau of Labor Statistics. Experts say that increasing labor costs are the primary driver.
Organizations: Yum Brands, KFC, Taco Bell, U.S . Bureau of Labor Statistics
CNBC's Jim Cramer on Friday analyzed Cracker Barrel 's business over the past few years, telling investors they should wait to buy the stock until the company gives a progress update on its conference call in two weeks. So as the competition raises prices to combat inflation, Cracker Barrel has less room to do so. Cramer also said he wants to know whether the company will cut its dividend. "I want to recommend Cracker Barrel, I really do," Cramer said. Cracker Barrel did not respond immediately to CNBC's request for comment.
Persons: CNBC's Jim Cramer, Cramer, Julie Felss Masino, Masino Organizations: Taco Bell
Pfizer — Shares climbed more than 2% after New York City-based Pfizer beat Wall Street's first-quarter revenue forecast and raised its full-year profit guidance. CVS expects adjusted earnings of at least $7 per share for 2024, down from previous guidance of $8.30 per share. Analysts were expecting $8.28 per share, according to LSEG. A second-quarter revenue forecast also surpassed expectations, with Pinterest forecasting sales of $830 million to $850 million vs an LSEG consensus estimate of $827 million. Fiscal third-quarter revenue of $3.85 billion missed the Street's consensus estimate of $3.95 billion, according to LSEG.
Persons: Wall, Marriott, Estée Lauder, Estee Lauder, LSEG –, Kraft Heinz —, Powell, Macheel, Alex Harring, Sarah Min, Michelle Fox Organizations: Pfizer —, New, Pfizer, CVS, Marriott, LSEG, Starbucks, AMD —, AMD, Yum, KFC, Taco Bell, Powell Industries Locations: New York City, LSEG, Houston
Super Micro Computer — The server vendor dropped 15% after missing revenue expectations for its fiscal third quarter. However, Super Micro beat analysts' expectations for its adjusted earnings and hiked its revenue guidance for its fiscal 2024 year. Starbucks posted adjusted earnings of 68 cents per share on revenue of $8.56 billion. Pfizer now expects adjusted earnings of $2.15 to $2.35 per share for the full year, higher than its previous forecast of $2.05 to $2.25 per share. Yum Brands — The fast-food giant lost nearly 4% after it reported quarterly adjusted earnings and revenue that missed analysts' expectations.
Persons: Joseph Otting, , Cowen, Skyworks, SiriusXM, Goldman Sachs, Powell, Estée Lauder —, Estée Lauder, Kraft Heinz, Pinterest's, Alex Harring, Yun Li, Lisa Kailai Han, Hakyung Kim, Michelle Fox Organizations: New York Community Bank, Super Micro, Starbucks, Pfizer, Apple, Amazon Web Services, CVS, Powell Industries, Wall, LSEG, Brands, KFC, Pizza, Taco, JPMorgan Locations: Houston, Taco Bell's
Starbucks announced a surprise drop in same-store sales for its latest quarter, sending its shares down 17% on Wednesday. Pizza Hut and KFC also reported shrinking same-store sales. Starbucks said bad weather dragged its same-store sales lower. Wingstop , Wall Street's favorite restaurant chain, reported its U.S. same-store sales soared 21.6% in the first quarter. This marks the second consecutive quarter that Burger King reported stronger U.S. same-store sales growth than McDonald's.
Persons: It's, McDonald's, it's, Taco Bell, January's snowstorms, we've, Ian Borden, Wall, International's Popeyes, Chris Kempczinski, Laxman Narasimhan, Narasimhan, David Gibbs, Taco, Yum, Burger, Organizations: Starbucks Workers, D.C, Starbucks, KFC, Yum Brands, Taco, Bureau of Labor Statistics, Taco Bell, Brands Locations: Dupont Circle, Washington, Pizza, U.S, Australia, Canada, Germany, Japan, Taco
Yum Brands on Wednesday reported quarterly earnings and revenue that missed analysts' expectations as Pizza Hut and KFC struggled to attract customers. Yum's global same-store sales also fell 3% in the quarter, missing StreetAccount estimates of 0.2% same-store sales growth. Across Yum's three largest brands, only Taco Bell reported same-store sales growth. Taco Bell's U.S. locations reported same-store sales growth of 2%, while its international business posted a decline of 2%. Pizza Hut reported same-store sales dropped 7%, as demand lagged both in its home market and internationally.
Persons: Taco Bell, Yum Organizations: Yum Brands, KFC, LSEG Locations: Austin , Texas, Yum's, Mexican, Bell's U.S, U.S, China
Eli Lilly — Shares added 5% after Eli Lilly, maker of the Mounjaro diabetes and weight loss drug, beat analysts' expectations for first-quarter adjusted earnings. PayPal — Shares gained 3.6% after the payment company posted $7.70 billion in first-quarter revenue, beating analysts' estimates for $7.51 billion, according to LSEG. The chipmaker posted adjusted earnings of $3.24 per share, higher than the consensus estimate of $3.16 per share, according to LSEG. Earnings of 24 cents per share on $1.37 billion in revenue exceeded consensus forecasts of 11 cents and $1.36 billion, according to FactSet. Adjusted earnings of 71 cents per share topped anticipated earnings of 65 cents per share.
Persons: Eli Lilly —, Eli Lilly, drugmaker, Jefferies, Tesla, Goldman Sachs, Tenet, Corning, FactSet, Sysco, Medifast, Paccar, Bob Bakish, Skydance, Needham, Macheel, Michelle Fox, Yun Li, Lisa Kailai Han, Pia Singh, Sarah Min Organizations: PayPal —, PayPal, Semiconductor, Tenet, FactSet, Technology, GE Healthcare Technologies, LSEG, Taco Bell, KFC, Paramount Global, CBS, Paramount Locations: Indianapolis, China, LSEG, FactSet, Houston
Make a Great Taco Even Better With Jackfruit
  + stars: | 2024-04-30 | by ( Ligaya Mishan | ) www.nytimes.com   time to read: +2 min
Rivals for the title include a 144-pounder reportedly sighted at a jackfruit festival in the southern Indian state Kerala in 2010. Kerala is where the American poet and essayist Aimee Nezhukumatathil first tasted jackfruit, at age 8. Then they watched her devour jackfruit and understood that she was one of them after all. But in 2020, when grocery supplies were running low during the pandemic, she spotted canned young jackfruit at the local store. “It’s about as close as you can get to tearing into flesh,” Nezhukumatathil says.
Persons: Aimee Nezhukumatathil, , jackfruit, ” Nezhukumatathil, Nezhukumatathil Organizations: Rivals, Miss Locations: Maharashtra, Kerala, American, Chicago, Oxford, Mississippi, United States
My husband and I use our Costco executive membership to buy food for our family of four. The Kirkland Signature chicken street-taco kit is a yummy, filling meal my kids and husband love. AdvertisementMuch like over half of Costco's shoppers, we have children to feed and like to buy our family's favorite foods in bulk. My husband is a Costco general manager, so he gets a free executive membership as an employee. This story is available exclusively to Business Insider subscribers.
Persons: rotini, Organizations: Costco, Kirkland, BBQ Company, Service, Business
To do so, Edelman recently promoted Brian Buchwald to global chair of product and AI to oversee the firm's AI investments. Buchwald joined Edelman in 2023 and was previously the global head of product, trust data, and technology at the firm. Previously, this tool used small language models and now uses generative AI and large language models, Buchwald said. Using generative AI has increased the tool's ability to predict future trustworthiness with 97% accuracy, he said. More broadly, holding companies have made significant investments into generative AI for content creation that compete with Edelman.
Persons: Edelman, Taco Bell, Brian Buchwald, Buchwald, Weber, Interpublic Group's Weber, Jay Pattisall, Forrester Organizations: eBay, Business, New York Times, Google, Adobe, Edelman, WPP Locations: Talkwaker
When the Mexican Pizza returned to Taco Bell in May 2022, it started selling out everywhere. Dolly Parton was happy to record a video message just for the staff to boost morale. AdvertisementWhen the Mexican Pizza finally returned to Taco Bell, the demand was intense. The beloved menu item returned in May 2022 but immediately started selling out in stores — leaving employees to deal with upset customers. This story is available exclusively to Business Insider subscribers.
Persons: Dolly Parton, , Taco Bell, Taco, Taylor Montgomery Organizations: Mexican Pizza, Taco Bell, Taco Bell's, Service, Taco, Business Locations: Mexican
Fast food is getting more expensive, and Americans are annoyed about it. Diners told BI they're cutting back on how often they get fast food because of rising prices. AdvertisementBut cheaper fast food may be some way off. Experts say it could have a ripple effect on wages across the fast food industry nationwide, meaning that your favorite spots could become even pricier. The main reason Rodriguez gets fast food is the taste, he said.
Persons: , Sara Senatore, Dunkin, Warren Colehour, Chad Frye, Artur Widak, Frye, Martin Jennings, it's, Chipotle, James R, Martin, Ben Heyworth, Burger King, He's, Del, Richard McConnell, Ricardo Rodriguez, Rodriguez Organizations: Service, Bank of America, McDonald's USA, Getty, Subway, Consumers, McDonald's Locations: Ukraine, McDonald's, Kentucky, California, Florida, Olive, Burger, Oregon
And they're hoping the Cantina Chicken menu will help bring the lunch crowd to Taco Bell. Taco Bell tapped Jason Sudeikis to promote the new Cantina Chicken menu. Taco BellDuring Live Más LIVE, Liz Matthews — the chain's chief food innovation officer — told the audience of superfans that Taco Bell is always listening to their reviews of the brand. Taco Bell wants the world to know that the new Cantina Chicken menu "isn't just for late-night." Here's my ranking of all five new menu items.
Persons: Taco, Taco Bell, Jason Sudeikis, Liz Matthews, , Bell Organizations: Taco Bell, Bell, Taco
Restaurant franchisees say they're the real losers of California's $20 fast-food minimum wage. AdvertisementFranchisees say they have to bear the brunt of California's new $20 minimum wage for fast-food workers. But the $20 wage applies to both corporate-owned and franchise restaurants, even if the franchisee just owns one or two restaurants. She added that the new $20 wage felt like an "unfair target on our backs." "You're going to have to have the mega owners as they're called, or 20 stores, a hundred stores, 500 outlets.
Persons: , Keith Miller, Brian Hom, We're, Hom, Miller, he'd, Mike Mangoine, Jessica D'Ambre, D'Ambre, Matthew Haller, Burger King, they're Organizations: Service, Business, Subway, McDonald's Corporation, Los Angeles Times, Times, International Franchise Association, Taco Bell Locations: California, San Jose , California, Los Angeles, Inland, Burger, McDonald's
Fast-food franchisees in California fear diners will flock to Chili's and Applebee's to avoid price hikes. As a result, the price gap between fast-food and casual dining restaurants could narrow. This could potentially cause the price difference between fast-food and casual dining restaurants to shrink. Fast-food restaurants in California have been hiking prices to offset the wage, which is 25% above the state's general minimum wage. "We're gonna start to compete with them," Ghai said, speaking about the casual dining restaurants.
Persons: , Shane Paul, Paul, Scott Olson, Taco Bell, Ghai, he's, wouldn't, Scott Rodrick, Rodrick, Hajime Uba, Brian Vaccaro, Raymond James, Sal Vitalie, Vaccaro, Sharon Zackfia, William Blair Organizations: Service, Burger Locations: California, San Diego, South San Francisco
Cowan's earnings from using FrontHouz regularly average more than $5,500 monthly. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . To manage my responsibilities, I pick up shifts through FrontHouz, a staffing platform for hospitality workers that allows for flexible scheduling. Restaurant shifts are usually posted a week in advance, but it's not uncommon for a last-minute shift to pop up for the same night. Consider dedicating specific days or nights to FrontHouz shifts, particularly when restaurants are busier, like special event nights or popular weekly specials (think: Taco Tuesday or Sunday brunch).
Persons: Kai Cowan, FrontHouz, Cowan, bartend, , It's, Starr Douglas, Starr, I'm Organizations: Service Locations: Atlanta, FrontHouz
"We all make compromises," Pollan told Business Insider ahead of the release of his latest documentary, Food, Inc. 2, out April 12. "We do the best we can, and people pick out the issues they want to deal with, and can deal with." AdvertisementAt home, Pollan tries his best to avoid eating industrial meat, eggs, or any other product from big factory farms. They keep a stash of well-sharpened knives, ready to chop and cook a rainbow of veggies for dinner most nights. The reality is that Pollan does participate in America's industrialized food system.
Persons: Michael Pollan, it's, Pollan, I'd, He's, Joey Hadden, Jon Tester, he's Organizations: New York Times, Food, Inc, Business, Amazon, Taco Bell, Democratic, Food Inc Locations: Alaska, yuba, Moroccan, Berkeley , California, Waterloo , Iowa, Florida, Washington, Montana
A huge Burger King franchisee is rushing to cut costs over California's $20 minimum wage for fast-food workers. AdvertisementA major fast-food franchisee in California says he's rushing to roll out digital order kiosks as part of plans to cut costs over the state's new $20 minimum wage for fast-food workers. Ghai said he owns 180 fast-food restaurants in California, including about 140 Burger King locations and numerous Taco Bell and Popeyes restaurants. Ghai says he can't raise prices any moreThe new minimum wage, which applies to limited-service restaurant chains with at least 60 locations nationwide, came into effect on April 1. It's 25% higher than the state's general minimum wage of $16 an hour, though many cities and counties in California have set theirs higher.
Persons: , Harsh Ghai, Ghai, he's, Shack, Burger King, Taco Bell Organizations: Burger King, Service, Taco Bell, BI, Taco Locations: California, West Coast, Burger
Chick-fil-A dominated its fast food peers with average restaurant sales of $9.3 million. By contrast, McDonald's and Taco Bell make $3.7 million and $1.9 million, respectively. AdvertisementWhen it comes to average restaurant sales, no fast food brand does better than Chick-fil-A. The chicken chain again dominated its industry peers, with average stand-alone restaurant sales of $9.3 million last year, according to company documents. That's more than twice as much as McDonalds' US locations ($3.7 million) and nearly five times what Taco Bell ($1.9 million) made last year, according to Technomic, a foodservice industry group.
Persons: , Taco Organizations: Taco Bell, Service, McDonalds, Business
Taco Bell CMO Taylor Montgomery told BI that he eats at the chain "every other day." CEO Sean Tresvant told BI he eats at Taco Bell three to four times a week. The chain's CMO sat down with Business Insider at Live Más LIVE, its first-ever superfan convention, and revealed he eats Taco Bell "every other day." He always opts for one beef and one chicken taco, as well as a bean burrito. While their go-to orders may vary, both Montgomery and Tresvant are huge fans of Taco Bell's Cantina chicken menu, which features five new dishes — the Cantina chicken burrito, the Cantina chicken taco (available soft or crispy), the Cantina chicken bowl, and the Cantina chicken quesadilla.
Persons: Taylor Montgomery, Montgomery, Sean Tresvant, , Anneta, Sean Tresvant —, Tresvant, Liz Matthews, Taco, Taco Bell Organizations: Taco Bell, Service, Business, Taco, Bell, CNN Locations: Irvine , California, Montgomery
New York CNN —California just raised the minimum wage for the state’s fast food sector workers by $4 to $20. And, although many casual observers disagree, higher wages for fast food workers could actually help fast food owners, Dongoski said. The employment level in fast food restaurants still hasn’t reached pre-pandemic levels. This has nothing to do with minimum wage.”However, the minimum wage increase serves as an accelerant, Brown said. The changes are necessary, said Ghai, who employs 3,700 fast food workers in California.
Persons: , Rob Dongoski, Dongoski, hasn’t, ” Dongoski, McDonald’s, Katie Fogerty, , David Paul Morris, Burger, Marbue Brown, we’ve, ” Brown, that’s, Brown, “ It’s, Taco, Ghai, “ Everyone’s, ” Ghai, he’s, Harsh Ghai, Condie, ” Condie Organizations: New, New York CNN, Bloomberg, Getty, Burger, Taco Bell, CNN, California Restaurant Association Locations: New York, California, Kearney, Larkspur , California, New York City
Chains owned by publicly traded restaurant companies accounted for half of the top 10 fastest-growing retail brands in the U.S. last year, according to a new Yelp report. Of the 50 fastest-growing chains in Yelp's report, 35 were restaurant brands. Jack in the Box, First Watch and Dutch Bros were among the public restaurant chains included in the report, but they didn't crack the top 10. Popeyes' higher sales have encouraged franchisees to open more locations and led new operators to join the brand, Restaurant Brands executives have previously said. In 2023, Popeyes surpassed KFC as the second-most popular chicken chain in the U.S. by sales, trailing only Chick-fil-A.
Persons: Jack, Levi Strauss, Cava CAVA, Cava, Zachary Lucy, Scott Olson, Darden, Yum, Stephanie Dhue, Tim Hortons, Burger King, Randy Risling, Popeyes, Michael Siluk, Freddy's, Kyle Rivas, It's, Justin Sullivan Organizations: Dutch Bros, Publicly, Nordstrom, Costco, New York Stock Exchange, Pacific Coast League, Omaha Storm, Memphis Redbirds, AP, LongHorn, Getty, Darden, steakhouse, Parent, Yum Brands, Taco Bell, KFC, East, CNBC, Wawa, Toronto Star, Brands, Restaurant Brands, UCG, Thompson, Capital Partners, Rally House, Kansas City Chiefs, Tampa Bay Buccaneers, Subs Locations: U.S, Cava, Werner, Omaha , Nebraska, Nebraska, Skokie , Illinois, California, West, Wawa, Bethany Beach , Delaware, Philadelphia, It's, Louisiana, Lansing , Kansas, Kansas City , Missouri, Midwest, Pennsylvania, Arizona, Olive, Lincolnwood , Illinois, Jersey, Petaluma , California
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