Q2 2019 Industry Research

Same-Store Sales Discussion

Restaurant industry same-store sales (“SSS”) increased for the seventh straight quarter in Q2 2019 following six consecutive quarters of SSS declines. Of the 52 companies reporting SSS results this quarter, 38, or 73.1%, generated SSS growth.

As shown in the figure below, long-term performance, measured over 3-, 5- and 10-year periods, has been most consistent in QSR. Fast casual provided the most growth over the past 10 years; however, the segment was negative over the past three years, as was the family dining segment. QSR led the industry with 1.7% growth in Q2 2019, extending its positive streak to nine consecutive quarters.

QSR:  The QSR segment extended its streak of positive year-over-year (“YOY”) SSS growth to nine consecutive quarters with a 1.7% increase. Mexican concepts led the segment for the 13th straight quarter with 3.7% growth, largely due to another strong quarter from Taco Bell (+7.0%). Chicken concepts rebounded from a disappointing Q1 with a 1.2% increase, driven by a 2.6% increase for Popeye’s, partially offset by 2.6% decrease for Pollo Tropical, its third consecutive negative quarter. Domino’s (+3.0%) delivered another strong quarter in Q2, however this represents a fifth consecutive quarter of slowed growth. The sandwich (+2.6%) and coffee/snack (+2.0%) segments also posted modest growth led by industry leaders McDonald’s (+5.7%) and Starbucks (+7.0%), respectively.

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