McDonald’s Outperforms Its Peers in Same-Store Sales Growth
Same-store sales growth
Expressed in percentage, same-store sales growth (or SSSG) measures growth in a company’s sales in existing restaurants over a certain time. SSSG is an important metric for investors to monitor, as it raises the company’s revenue without increasing its capital expenditure.
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With SSSG of 6.6%, McDonald’s (MCD) outperformed peers in 2Q17. The company’s SSSG was driven by enhancement of guest convenience and menu innovations. During the quarter, the company expanded its mobile order and pay facilities and delivery services to more restaurants and also introduced its Signature Crafted line and cold beverage value platform across the United States.
McDonald’s was followed by Burger King. Burger King, which operates under the umbrella of Restaurant Brands International (QSR), posted SSSG of 3.9%. The SSSG was driven by value promotions, menu innovations, implementation of technological advancements, and expansion of home delivery services.
Burger King was followed by Wendy’s (WEN), which has posted SSSG of 3.2%. Wendy’s SSSG was driven by improvements in food quality, value propositions, menu innovations, enhancement of customer experience through the implementation of digital advancements and image activation, and a balanced marketing approach. During the quarter, the company launched its fresh mozzarella chicken salad and sandwich, which was followed by the introduction of its Strawberry Mango Chicken Salad.
During the quarter, the SSSG of Jack in the Box brand, which operates under the umbrella of Jack in the Box (JACK), fell 0.2%. The decline in the number of transactions brought the company’s SSSG down. However, some of the declines were offset by the rise in prices of menu items and a favorable product mix.
Next, we will look at the unit growth of fast food restaurants.