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The results are in: Restaurants’ Q3 earnings show inflation’s effect

Sam Oches here, Editor-in-Chief of Nation's Restaurant News. It’s nearly Halloween, which means a few things: I’m going to attend way too many parades with children in costumes, I’m going to have a dangerous amount of chocolate in my household, and I’m going to run out of both rum and cider in short order.  

Oh, and it’s Q3 earnings report season!

That’s right, the major restaurant companies have started sharing their results from the third quarter, and our editors at Nation’s Restaurant News are all over them. Some interesting trends are already starting to emerge, particularly as it relates to inflation. It’s clear that the price hikes that major chains have implemented to combat climbing costs are largely responsible for the positive sales results they’re seeing. But also, the industry’s pivot to digital ordering and off-premises service — particularly delivery — could be providing a sort of modern-day value equation that leads to a trade-down effect, especially for quick-service and fast-casual companies. 

What else can you learn from the quarterly earnings we’ve seen so far? Click through the headlines below to see how some major companies are performing, then head to our LinkedIn to share your thoughts.

McDonald’s higher menu prices didn’t deter traffic in Q3

McDonald’s reported its third quarter earnings Thursday morning, including a 6.1% increase in same-store sales for its U.S. system. This marks the company’s ninth consecutive quarter of comp sales growth in the U.S., and the 22nd out of the past 23 quarters.

READ MORE ON MCDONALD'S Q3 EARNINGS

Wingstop Q3 benefits from wing-price deflation, expanded delivery

Wingstop Inc. continued to benefit from slipping wholesale costs for bone-in chicken wings during its third quarter, allowing it to hold the line on menu price increases and increase transactions with a new chicken sandwich and expanded delivery platforms, executives said Wednesday.

FIND OUT MORE

Chipotle Mexican Grill's Q3 exceeds expectations as consumers return to dine-in

Chipotle reported its Q3 results Tuesday after the markets closed, with comp sales up 7.6%, exceeding analysts’ expectations of 7.3%.

LEARN MORE ABOUT CHIPOTLE'S Q3 EARNINGS

In the Mix this week: White Castle’s culture, a CREATE recap, Denver’s restaurant scene and more

We’re curious to hear from you about actions you’re taking to combat inflation. Are you offering discounts or other value-oriented deals to your customers? Are you streamlining operations, whether that’s cutting back on labor or downsizing your menu? Or are you trying something else entirely? CLICK HERE to answer our poll, and leave a comment about strategies you’re utilizing to combat inflation; we might be in touch to learn more for a story.

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