Restaurants Pressured to Win Back Share With Lower Prices -- Market Talk

Dow Jones01-10 01:30

1229 ET - Restaurants that kept prices low coming out of the pandemic are faring best now, Mizuho analysts say. Restaurants are pressured to keep prices low after losing share to grocery and convenience stores during a period of high inflation. The analysts point to Domino's as an example of a quick-serve restaurant that kept prices low and is now poised for same-store sales growth and margin expansion. Its peers are in an earlier stage of forming an effective value strategy, the analysts say. Meanwhile, fast-casual restaurants such as Chipotle and Cava will need to keep prices below grocery inflation, which will challenge margins, the analysts say. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

January 09, 2026 12:30 ET (17:30 GMT)

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