Q3 2018 Industry Research

Same-Store Sales Discussion

Restaurant industry same-store sales (“SSS”) increased for the fourth consecutive quarter in Q3 2018 following six straight quarters of SSS declines. Of the 57 companies we follow, 40, or 70%, generated SSS growth – an increase of 25% over Q3 2017.

As shown in the figure below, longer term performance remains most consistent in QSR measured over 3, 5 and 10 year periods. Fast casual provided the most growth over the past 10 years, but most of that growth occurred more than five years ago. Casual dining and fine dining have suffered the most, with minimal SSS growth for all time periods over the past 10 years, as diners started flocking to fast casual restaurants.

QSR: The QSR segment extended its streak of positive year-over-year (“YOY”) SSS growth to six quarters with a 1.2% increase. Mexican concepts again led the segment with 2.8% growth, making it the segment leader for nine straight quarters. Domino’s outperformed all other QSR concepts with YOY SSS growth of 6.3%. Sonic Drive-In performed well in Q3 2018 and led Sandwich concepts with a 2.6% increase in SSS; although, this growth follows eight consecutive quarters of SSS declines.

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