What do you mean fasting doesn't mean eating fast food? Buckle up if you can. McDonald's $5 meal deal has opened up a Pandora's lunch box for fast food wars as Wendy's launches its own new value meal. At $3, the rival is hoping customers follow its slogan, "Choose wisely. Choose Wendy's".
Wendy's breakfast combo meal which combines a portion of seasoned potatoes with two breakfast muffins sounds like it'll stick to your ribs, and it has to as fast food goes aggressive. The new lower-price offering comes as customers are increasingly frustrated by rising fast-food prices. The result has been disappointing quarterly earnings at McDonaldland and Wendy's as customers, especially lower-income diners, scale back or look for other options.
Where's the beef? When Ronald threw down the Big Mac hammer earlier this month, it was the opening salvo into a brewing fast food war as chains get the message (hold the mayo) about soaring prices. In other words, there's nothing Orange Dreamsicle frosty about inflation and overpriced meal deals.
On the other side of the Baconator, not all fast food chains have experienced a customer pullback. The likes of Chipotle continue to enjoy strong sales and taco bowl earnings bonanza despite raising prices. That may also be why McDonald's is also experimenting with new food items, most notably, the Grandma McFlurry in order to add more variety.
Will it cross the road too? Yum Brands which owns KFC, Pizza Hut and Taco Bell owner Yum Brands has also seen an earnings hiccup. So the purveyor of fried chicken, pies and chimichangas is likely to follow with its own new value offerings to lure customers back https://lnkd.in/gwnbYr52 #wendys #mcdonalds #fastfood #restaurant #inflation #consumers
