Thursday Jun 01, 2023

$1 menus may already be a thing of the past, Restaurant Brands CEO says

$1 menus may already be a thing of the past, Restaurant Brands CEO says

The slowdown in the U.S. economy hasn’t warranted a dollar menu from the likes of Burger King, but Restaurant Brands CEO José Cil says it does require restaurants to provide a steady stream of value.

“We have had dollar menus or kind of entry-level a la carte menus,” the CEO overseeing Burger King and other brands said on Yahoo Finance Live (video above). “I don’t know if a dollar is any longer the relevant price point, but having an everyday entry-level price point product that consumers can go to is an important aspect of being a broad-based and very thoughtful restaurant business. That’s something that we continue to explore and look at.”

Despite the rising economic challenges and a lack of dollar offerings, consumers continued to seek out Restaurant Brands’ chains in the third quarter.

DES PLAINES, IL - APRIL 14:  The price board hangs insiThe price board hangs inside the McDonald's USA First Store Museum April 14, 2005 in Des Plaines, Illinois.(Photo by Tim Boyle/Getty Images)de the McDonald's USA First Store Museum April 14, 2005 in Des Plaines, Illinois. The McDonald's museum is a recreation of the first McDonald's restaurant opened at this location by founder Ray Kroc on April 15, 1955. The original red and white tiled restaurant was finally torn down in 1984 and the present facility was built according to the original blueprints with some modifications to accommodate visitors and staff. The customer service and food preparation areas contain original equipment and the all male crew is represented by mannequins dressed in the 1955 uniform of dark trousers, white shirts, aprons and paper hats. McDonald's will mark their 50th anniversary with an opening of a new restaurant in Chicago. (Photo by Tim Boyle/Getty Images)

The price board hangs inside the McDonald’s USA First Store Museum on April 14, 2005, in Des Plaines, Illinois. (Photo by Tim Boyle/Getty Images)

U.S. same-store sales at Burger King rose 4% for the quarter while Popeye’s and Firehouse Subs’ U.S. same-store sales rose 1.3% and 0.8%, respectively. And overall same-store sales grew by 9%, supported by big gains internationally at Tim Horton’s and Burger King.

Here is how Restaurant Brands performed compared to Wall Street estimates for the third quarter.

Restaurant Brands stock rose 2% in Friday trading on the heels of the company’s results.

“Net-net, we could see shares rally near-term on better results, but follow-through may be limited as investor concerns regarding unit growth and key core market performance (BK US/PLK US) remain,” Citi Analyst Jon Tower wrote in a note to clients.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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