Who's winning from narrowing fast food-fast casual price gap?

The pricing gap between fast casual and fast food chains is narrowing, a trend that appears to be benefiting fast casual brands such as Cava (CAVA) and Wingstop (WING).

Yahoo Finance retail reporter Brooke DiPalma analyzes how this shift in pricing trends is reshaping consumer dining choices and impacting company performance, comparing the sales figures out from Cava, Wingstop, Chipotle (CMG), Yum! Brands (YUM), Papa John's (PZZA), and McDonald's (MCD).

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This post was written by Angel Smith

Video Transcript

You've got a special guest with us for a third story here.

Our very own the whole time I just been, I've been hanging out so Brooke, I mean this is, this is a really fun story that we're gonna get, get off and our show with rather what do you got for us?

Yeah, so we're talking about the price gap between fast casual and fast food, which seems to have shrunk here as consumers saw out the best Bang for their buck that boosted same sort of sales for fast casual chains like Wing Stop Cava and Chipotle, as well as Grin and Q Two Taco Bell also saw sales growth after its premium chicken canteen offering boosted sales.

And that's a far different story from fast food players, KFC, Pizza Hut, Papa John's and mcdonald's other players in the space that saw sales, same source sales decline include Starbucks.

And what it really comes down to you guys is this concept of value these days.

What exactly is value?

Is it experience is it just price, is it all them together and what we've seen and its consumers go to fast casual chains, both Kava and uh sweet green CEO weighing in on this, that the price gap has shrunk and that's benefiting them.

We gotta, we gotta go one word answer.

Do you think Chipotle's hot honey chicken is gonna save?

And I'm excited about it.

I mean, we've seen in the past Chicken, Al Pastor and uh Barbeque uh do really well for Chipotle.

So innovation seems to be a, a key trend that boasts well for them.

That was more than one word, but you are the only person that gets an exception here, Brooke.

Thank you so much for taking the time here.