- It's been another tough quarter for the fast-food sector.
- Both KFC and Burger King saw sales fall in the US in the three months to the end of September.
- Soaring prices have been putting off some diners who are opting to cook at home or eat elsewhere.
It's been another tough few months for fast-food giants.
McDonald's kicked off earnings last week by reporting a drop in global sales for the most recent quarter. On Tuesday, Burger King owner Restaurant Brands International and the parent company of KFC followed in its footsteps.
Same-store sales worldwide for Yum! Brands, which owns KFC, Taco Bell, and Pizza Hut, dropped by 2% year over year.
Its biggest brand — KFC — saw same-store sales in the US slide 5%.
Meanwhile, Restaurant Brands International, which owns chains including Burger King, Tim Hortons, and Popeyes, reported a weaker-than-expected 0.3% increase in same-store sales across the group for Q3.
Comparable sales dropped by 0.4% for Burger King and 3.8% at Popeyes in the US. Globally, comparable sales fell 0.7% and 4%, respectively.
Tim Hortons and Taco Bell were bright spots for both parent companies in the US, however, reporting an uptick in sales. The latter has won over diners with cheaper fast food and value menus.
Fast-food chains have struggled recently as price hikes have increasingly put off some consumers.
Chains raised their menu prices to account for rising food and labor costs in the years after the pandemic.
McDonald's, KFC, and Burger King are among those trying to lure back diners with new value menu deals. But it looks like it hasn't been enough.
Some consumers say they're increasingly turning to independent restaurants, casual dining chains, or home cooking to get a better deal.