McDonald’s is still struggling from the impact of last fall’s E. coli outbreak. | Photo: Shutterstock.
Welcome to Restaurant Business’ Week in Review for the week of Feb. 10, 2025.
For McDonald’s, E. coli is the gift that keeps on taking
As the world continues its relentless march toward culinary mediocrity, McDonald’s stands tall like a sentry who can’t quite forget the smell of last fall’s E. coli outbreak. In their fourth-quarter earnings report, the chain revealed an invigorating drop in U.S. same-store sales, down a staggering 1.4%. But wait—traffic increased slightly! Perhaps consumers were just curious about the health advisories on the drive-thru menu. McDonald’s is now banking on selling more chicken and drinks, perhaps hoping to distract from the lingering taste of germs.
Restaurant menu prices stabilize, if you ignore eggs
In a stroke of irony, restaurant menu price inflation tiptoed to an almost respectable 0.2% in January, far less troubling than the inflation faced in grocery stores. Meanwhile, prices at home escalated by 1.9%—perhaps due to egg prices soaring like a poultry factory’s stock options, shooting up 15.2% from the month prior. So, if you’re looking to save a penny or two, might I suggest steering clear of omelettes for the foreseeable future?
Infighting at a Twin Peaks franchise
In the realm of melodrama, we have Florida-based Twin Peaks, where the former COO is taking legal action against his business partners for a buffet of alleged fraudulent activities. It sounds like a TV show waiting to happen—“Desperate Franchisees,” anyone? As the spat continues, both parties seem to be playing a game of “who can throw dirt the best.” Spoiler: no one’s going to win a Michelin star here.
Does it come with a side of crinkle-cut fries?
In a plot twist for the ages, the fast-casual sensation Dave’s Hot Chicken is rumored to be up for sale. Once a parking lot pop-up, this rising star now has nearly 300 locations, making waves in the Nashville hot chicken universe. The investors have enlisted an investment bank in a noble quest to find a buyer—because who doesn’t want to own a franchise where the heat isn’t just in the kitchen?
Denny’s sees opportunity in virtual brands
Amid whispers of impending doom, Denny’s is shuffling its cards and planning to close up to 90 underperforming locations this year. But fret not! The retro diner chain isn’t throwing in the greasy towel just yet. Instead, it has spotted a shiny beacon of hope within its virtual brands. After all, who needs an actual restaurant when you can just serve up nostalgia via the internet, right?
ICYMI
In case you missed it, check out our exclusive chat with Patrick Doyle, the executive chairman of Burger King’s parent company, because nothing says culinary insight like a guy who presides over fast food royalty. Additionally, Piada Italian Street Food is in a sprint to national fame, and Golden Corral is conjuring up a tech stack that promises to make 2025 look like a picnic—minus the ants. Oh, and convenience stores are hopping on the limited-time offers bandwagon, proving that almost everyone wants a slice of the fast-food pie.
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