Fast food slowdown

Fast food is suffering a slowdown, with companies citing causes including cheaper groceries and political uncertainty.

Major chains including McDonald’s, Burger King and Wendy’s reported disappointing sales in the United States for the latest quarter. Pinpointing why sales tactics aren’t attracting more customers often includes guesswork. It’s not always clear how much a company is affected by its own problems, versus external forces.

Dunkin’ Donuts said franchisees hiked prices too much, which drove off customers. Starbucks said an overhaul of its rewards program interrupted a Frappuccino promotion. Wendy’s said cheaper groceries are encouraging people to eat at home rather than dine out. Nobody blamed the weather — which can be a go-to explanation — but some did cite the political uncertainty created by the U.S. presidential election. Even among chains that reported higher sales at established restaurants, the lift appears to have been driven by higher pricing rather than more visits. 8+6C=>= note that big chains may be losing business to smaller competitors. There was a bright spot among major companies: Domino’s and Papa John’s sales were strong, supporting the idea that people want to hunker down at home.