The Denver Post

Fast food remains the Big Mac on campus

- By Caitlin Dewey

Americans aren’t forsaking fast food just yet.

Three years after analysts predicted that Chipotle would be the death of McDonald’s and other fastfood stalwarts, the onetime fast-casual darling is in free fall — and McDonald’s is reporting its third consecutiv­e quarter of solid samestore sales.

Indeed, all of the “Big 3” burger joints — McDonald’s, Wendy’s and Burger King — have recently seen strong same-store sales growth.

Since 2015, fast-food chains have outperform­ed fast-casual and sit-down establishm­ents by more than 2 percentage points, according to an analysis by the industry publicatio­n Nation’s Restaurant News.

The developmen­t has defied some analysts’ expectatio­ns in a time of changing consumer preference­s. It also speaks to the strong hold that fast food has on the American psyche — and how hard it will be to get consumers to give up their Quarter Pounders and Big Macs.

“It’s iconic,” said Melissa Abbott, the vice president of culinary insights at the Hartman Group, a restaurant industry consulting firm. “There’s still a desire for foods that provide familiarit­y and comfort.”

As Abbott and other analysts describe it, the enduring appeal of fast-food chains goes far beyond taste. Despite an ever-expanding menu of “betterfor-you” options, chains such as McDonald’s still boast the holy trinity of convenienc­e, low cost and familiarit­y.

McDonald’s and other fast-food joints have worked hard to maintain their edge in these areas.

“Quick-service restaurant­s know they resonate well in terms of value, convenienc­e and speed,” said Victor Fernandez, the executive director of insights at the restaurant analytics firm Black Box Intelligen­ce. “So a lot of brands, including McDonald’s, are now really focusing on what they do best.”

In terms of convenienc­e, the fast-food industry has invested heavily in online and mobile ordering, delivery, and touch-screen kiosks that speed up waits. McDonald’s offers delivery via UberEats at 3,700 urban locations across the United States — and CEO Steve Easterbroo­k promised in a Tuesday earnings call that the chain would continue to expand the program, reaching as many as 5,000 locations by the end of the year.

When it comes to cost, McDonald’s has aggressive­ly discounted core items — such as soda, McNuggets and Big Macs — to maintain its value propositio­n. Wendy’s and Burger King have offered similar promotions, promising a full meal, with drink and sides, for $4 or less.

By comparison, a single burrito at Chipotle — which has also faced higher ingredient costs and a lingering food-safety scandal — can cost between $7 and $10. The company announced Tuesday that it had missed revenue projection­s for the quarter, which analysts blamed on a pair of food-borne illness outbreaks, an April malware attack and lost traffic during this year’s hurricane season.

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