Same-Store Sales Discussion
During the second quarter of 2017 (“Q2 2017”), the restaurant industry saw mixed performance in same-store sales (“SSS”). On average, restaurant same-store sales decreased 0.6% yearover-year (“YOY”) in Q2 2017. Of the 67 companies we follow, only 30, or 45%, enjoyed positive same-store sales growth in Q2 2017. Data over the last several quarters have showed a consistent slowdown for the industry. Q2 2017 extended the streak of industry SSS decreases to five quarters.
QSR: In the QSR segment, 13 of the 23 concepts we track showed positive same-store sales growth during Q2 2017, with the segment as a whole up 0.5% YOY. Mexican concepts led the segment at 5.6% growth as Taco Bell (+4.0%) and Del Taco (+7.1%) both turned in strong results. Chicken concepts struggled in Q2 2017 and were down 2.0%, led by large decreases at Pollo Tropical (-7.7%) and Popeye’s (-3.3%), which suffered its second consecutive down quarter after years of positive comps. Domino’s (+9.5%) strong performance continued. If it’s any indication of how strong Domino’s recent performance has been, +9.5% was the third worst result of the past 12 quarters.Read the Full Commentary