Earnings from the first three months of 2026 show food businesses leaning on value menus and price cuts are gaining share as mid-tier fast food chains like Wingstop and Popeyes are losing, with executives warning they expect low-income consumers to pull back even more as rising gas prices from the Iran War and inflationary pressure heighten anxiety about spending.
A McDonald's Big Mac Combo Meal is shown. (AP Photo/Paul Sancya)
Reporting U.S. same-store sales growth of 3.9% in the first quarter—which the company attributed to its Extra Value Meals and McValue menus—McDonald's CEO Chris Kempczinski warned Thursday that elevated gas prices will disproportionately impact low-income consumers and fast food visits from households earning $45,000 or less are continuing to decline.
Restaurant Brands International reported Wednesday Burger King US same-store sales growth of 5.8% in the first quarter, roughly double analyst expectations of about 3%, driven by value items including the $3.99 King Junior Meal, while Popeyes same-store sales declined 6.5% in the quarter.
Last week, Yum Brands reported Taco Bell same-store sales growth of 8% in the first quarter largely due to its Luxe Value Menu, while its other portfolio brands KFC and Pizza Hut lagged behind as CEO Chris Turner said the company is planning on adopting Taco Bell’s value playbook across its other brands to capture customers again.
