The fourth quarter of 2024 was good for the fast-food sector, so long as you ignore December.
Traffic in the last three months of the year increased 0.8%, according to Revenue Management Solutions (RMS). That was the first time in at least two years that quick-service restaurants were able to generate more customers than they did the same period the year before.
That said, it’s not entirely fair to say that the industry ended 2024 on a strong note. Traffic declined 1.9% in December, according to RMS.
Average prices at fast-food restaurants increased 3.1% in the fourth quarter, similar to the price increases earlier in the year.
Fast-food restaurants spent much of 2024 fretting about declines in traffic, as consumers pushed back against what they saw as excessive menu price inflation.
The traffic challenges ultimately led the sector to launch a value war over the summer, as chains like McDonald’s, Burger King, Jack in the Box and many others offered mostly bundled meal deals and other offers.
The value offers led to some improved over the summer. But customer count improved dramatically in October, when multiple chain executives suggested their marketing promotions had more impact starting that month. Traffic at fast-food restaurants increased 2.8% in October and then 1.3% in November.
The December data suggests that the traffic improvement was largely driven by many of those promotions, rather than some broad-based improvement in overall trends. And indeed, January has brought back a host of new promotions, including the McDonald’s McValue menu, sub-of-the-day promotion at Subway and the return of Taco Bell’s Luxe boxes.
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