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Pizza Hut, Starbucks, other food chains report dip in sales so far in 2024

Economists say this is a sign of consumers spending less money due to factors like high prices and interest rates.
Fast food drive through order
Posted at 3:58 PM, May 02, 2024
and last updated 2024-05-03 12:54:04-04

Are higher prices at fast food chains making you reconsider dining out?

Chains like KFC, Pizza Hut, and Starbucks have all reported stores with declining sales in 2024.

Pizza Hut and KFC both saw declining same-store sales — down 7% and 2% percent, respectively — in the first quarter of 2024.

Starbucks reported a 3% decline in U.S. store sales for the first quarter of 2024.

The reason? Economists say people are spending less money because of higher prices and higher interest rates.

Inflation has grown over the past few years and it’s impacting consumers. Consumer price inflation went up 19.6% from January 2020 to January 2024.

A report from Bankrate found 55% to 63% of Americans are living paycheck to paycheck as of September 2023.

On top of consumers being strapped for cash. Fast food chains themselves have been raising prices.

For years, fast food has been outpacing inflation, according to an analysis by FinanceBuzz.

From 2014 to 2024, leading fast food chains increased prices by about 60%, while inflation increased at about 31%.

McDonald’s led the pack, with data showing prices have nearly doubled in that time.

McDonald's restaurant signs are shown in in East Palestine, Ohio.

Money

McDonald's has doubled its prices since 2014, data shows

Justin Boggs
12:48 PM, Apr 02, 2024

@scrippsnews How often do you spend #money at fast food restaurants? Some chains reported stores with declining sales in the first 3 months of 2024. Here’s why. #FastFood #economy ♬ original sound - Scripps News