Fast Food’s Pricing Pullback Fails To Win Back Customers As Chipotle Tumbles 13%

After years of profiteering, fast-food chains finally relaxed price hikes, but the damage has already been done. With 40% raises since 2019, operators from McDonald’sMCD

to Wendy’sWEN

are fighting to win back customers with value deals. Despite their efforts, second-quarter earnings have unmasked persisting woes, with key players like ChipotleCMG

plunging 13.3% yesterday.

• The sector raised average prices by just 0.8% in May — representing the lowest in years amid a decreasing trend, per consultancy Revenue Management Solutions.
• Despite this, foot traffic dropped 0.9% year-over-year in May — withCMG
  revealing a 4.9% plunge as the industry endured its 12th decline in 16 months.

The protein pivot: Thanks to higher prices that have priced out low-income consumers, diners are ditching steak and barbacoa for affordable proteins like chicken, which has doubled in consumption since 1970. With savings of $2 per entrée, one in four guests orders honey chicken at Chipotle, with peers like Taco BellYUM

, Din Tai Fung, and McDonald’s now beefing up their poultry offerings. Value menus didn’t work as intended, but customers are taking the latest bait (as long as it’s breaded).