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Casual dining gains share as fast-food sales face pressure
Technomic data show sales at about 500 casual-dining chains grew 2.9% last year, versus 1.5% in 2024, while Wendy’s has reported six straight quarters of declining same-store revenue.
Casual-dining chains are gaining momentum as diners shift from fast food to sit-down experiences, a trend showing up across both foot traffic and share performance, according to analysis published by Yahoo Finance. The piece points to stronger activity at Cheesecake Factory, BJ’s, IHOP and Chili’s, contrasting with challenges for quick-service brands like Wendy’s.
Yahoo Finance cites Technomic data tracking sales at roughly 500 casual-dining chains, showing growth of 2.9% last year, faster than 1.5% in 2024. It also says Chili’s led with double-digit growth, while Cheesecake Factory saw sales rise 5.8% and foot traffic increase 2.7%.
In quick-service, the article highlights that McDonald’s posted sales growth of less than 1% in its most recent quarter, with higher average spend per check offset by weaker traffic. It also notes that Wendy’s reported its sixth consecutive quarter of falling same-store revenue, and says Nelson Peltz’s Trian Fund Management is reportedly preparing a bid to take the company private.
The report frames the divergence as a sector split, with casual-dining benefiting from demand for experiences that cannot be replicated at home, while fast-food operators face tougher comparisons as value and execution issues weigh on performance.