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Report shows fast food brands are keeping up with inflation, Chick-fil-A brings back peach milkshake

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Yahoo Finance's Brooke DiPalma joins the Live show to discuss how the fast food industry has been keeping up with inflation as well as Chick-Fil-A bringing back its peach milkshake.

Video Transcript

SEANA SMITH: While the cost of food continues to rise, fast food chains are trying to avoid the brunt of the inflation crisis. My own Brooke DiPalma is here with a new report from Placer.ai on how the fast food sector has been managing. And Brooke, are they doing OK?

BROOKE DIPALMA: Yeah, actually, according to this new report, they are maintaining relatively steady foot traffic year over year and some companies even outperforming pre-pandemic levels. We saw this at Sonic, In-N-Out, Chipotle just to name a few outpacing those 2019 levels. Now, according to this new report, of course, there's so many major macro headwinds that are facing and impacting these quick-service restaurants, but they are still able to maintain that foot traffic because of their willingness to get creative. Of course, we've seen so many bump up their digital presence.

We've seen McDonald's take a look at their physical locations that are underperforming, close them out. We've also seen Burger King also take a look at those locations and consolidate their store fleet. Now, at Popeyes, they're still riding that 2019 wave from the debut of the chicken sandwich. And at Chipotle, they're up year over year and compared to three years ago as they continue to invest in their digital presence. And it really alludes to the fact that it doesn't have to come at the expense of physical foot traffic or digital foot traffic. They can do both.

- So sometimes you to get creative, in particular in the summer months, Brooke. So Chick-fil-A rolling out their peach shake, one of my personal favorites. How does that change the bottom line for them?

BROOKE DIPALMA: Absolutely. Well, Dave, you might be a bit jealous because we actually have these new peach milkshakes on set. Now, this debuted back in 2009. And according to the company, they said that this is a standout seasonal offering for the company. It brings in foot traffic. It allows them-- while they couldn't disclose the exact sales number, you know, it insists that it brings in this foot traffic for customers who continue to come back. And this, of course, is vanilla based. It has this peach flavoring topped with a whipped cream and cherry, and--

SEANA SMITH: It's good. It's very, very good.

BROOKE DIPALMA: It is very, very, very tasty. And as we've seen at other restaurants, Seana and Dave, this really does impact foot traffic. It encourages people to get exciting. We saw for the Shamrock Shake at McDonald's during the month of February. They saw foot traffic increase. It really became synonymous with St. Patrick's Day. And according to Chick-fil-A, you know, this has been around since 2009. We saw Wendy's also debut their strawberry frosty. So the competition in this milkshake space certainly heating up as we're headed into the summer.

SEANA SMITH: Well, it's certainly very, very good, and you can see why it brings more people through the doors. Brooke DiPalma, thanks so much for that.