Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Walmart says more diners are buying its groceries as fast food gets pricey

by May 17, 2024
May 17, 2024
Walmart says more diners are buying its groceries as fast food gets pricey

Forget the drive-thru. Walmart wants diners to find a value meal in its grocery aisles.

As fast food gets pricier, the nation’s largest grocer sees a sales opportunity.

On a call with CNBC on Thursday, Walmart Chief Financial Officer John David Rainey said some of the discounter’s sales growth in the recent quarter came from customers who turned to its grocery aisles for cheaper meals than they can get at quick-service restaurants.

“It’s roughly 4.3 times more expensive to eat out than it is to eat at home,” he said. “And that’s benefiting our business.”

As customers see some grocery items stay the same price or even become cheaper, the gap between buying menu items and cooking food at home has grown even wider, he said.

Walmart’s stock soared to an all-time high on Thursday, after it beat Wall Street’s quarterly sales and revenue expectations and said it expected its full-year results to be on the high end of, or better than, its previous forecast. Transactions in the U.S. rose 3.8%, as more customers visited its stores and website.

Walmart’s strong store traffic and quarterly results are at odds with those of restaurant companies, including McDonald’s, Starbucks and Yum Brands. Foot traffic to limited-service chains, which includes fast-food and fast-casual restaurants, fell 3.5% in the first quarter, according to Revenue Management Solutions. Restaurant executives blamed bad weather in January and February — and a consumer slowdown, particularly among lower-income diners.

Like many restaurants, McDonald’s has faced backlash to its prices. An $18 Big Mac combo sold at one of its franchised restaurants in Connecticut went viral on social media, prompting executives to defend the chain’s pricing on its conference call. The burger giant reported disappointing U.S. same-store sales growth of 2.5%, suggesting that its foot traffic fell during the quarter.

Still, McDonald’s CEO Chris Kempczinski said consumers, particularly those earning lower incomes, are hunting for deals. The chain will offer a $5 value meal starting June 25 for roughly a month.

Not all restaurants have had trouble getting diners to pay higher prices: fast-casual chains like Chipotle, Wingstop and Sweetgreen all reported strong sales in their most recent quarters.

Inflation data from the U.S. Labor Department reflects the difference between the price that customers pay for food they cook at home or pack for lunch, compared with what they pay at a coffee shop or restaurant. As of April, the price of food at home, a category that measures the total cost of food purchased at grocers or other food stores, was up 1.1% year over year. The price of food away from home rose significantly more: 4.1% year over year.

On the company’s earnings call on Thursday, Walmart U.S. CEO John Furner pointed to newer tool in Walmart’s arsenal that it can use to compete more aggressively with restaurants: its new grocery brand, Bettergoods.

The premium line includes unique flavors and merchandise tailored for more health-conscious customers or ones with a special diet, such as gluten-free or plant-based items. For example, it includes strawberries and cream-flavored Greek yogurt, curry chicken empanadas, restaurant-style chicken wings and salted caramel oat milk ice cream.

Seventy percent of the brand’s items are under $5, Furner said — a price point that may catch the eye of shoppers “trying to feed a family of four, five, [or] six.”

— CNBC’s Amelia Lucas contributed to this report.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Larry Williams: Dow 40k, Cycle Analysis, and Lessons Learned
next post
Netflix ad-supported tier has 40 million monthly users, nearly double previous count

Related Posts

Stanley tumbler ‘quenchers’ maker is being sued over...

February 23, 2024

S&P downgrades multiple U.S. banks on growing liquidity...

August 23, 2023

Boeing, Alaska Airlines point fingers at each other...

March 14, 2024

Walgreens plans store closures as CEO says consumers...

June 28, 2024

Weeks into the Covid booster rollout, parents of...

October 4, 2023

Rite Aid shutting down 27 more locations, bringing...

June 24, 2024

Why are frozen vegetable prices so high? Blame...

July 22, 2023

Weekly mortgage refinance demand rose 5% after a...

May 10, 2024

Sex, Signal messages and sabotage: SBF’s top execs...

October 9, 2023

As ‘Dry January’ becomes more popular, some express...

January 14, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Standard Uranium Confirms High-Grade Uranium Mineralization up to 8.10% U3O8 at Surface on the Corvo Project

    • Prismo Metals Announces Private Placement and Ripsey Gold Project Overlimit Silver Assay Results

    • Canadian Investment Regulatory Organization Trade Resumption – CRDL

    • Bold Ventures Highlights Burchell Gold Copper Project News

    • Eric Sprott Announces Acquisition of Common Shares of Silverco Mining Ltd.

    Categories

    • Business (1,400)
    • Investing (3,048)
    • Politics (3,699)
    • Stocks (1,825)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved