- Brian Bittner, an eminent analyst, provides his industry forecast for 2024, studying key players in the quick-service restaurant industry like Domino's Pizza, Restaurant Brands, and Sweetgreen.
- The article discusses Bittner's reasoning for downgrading McDonald's Corp and upgrading Yum! Brands, considering factors like digital sales growth and potential organizational challenges.
- Lastly, implications for retail investors are examined, providing insights into potential investment strategies that could be influenced by expert forecasts in the quick-service restaurant industry.
In the high-stakes world of the quick-service food industry, Domino's Pizza stands tall, partly due to its techno-savvy methods and finger-on-the-pulse aspect, suggests analyst Bittner. Essential to its success has been a marriage of customer-centric appetizing offerings and digital advancement. Domino's savvy use of tech propelled it headlong into a user-friendly experience coupled with improved operational efficiency. Asserting this, the company's digital sales grew from 25% in 2012 to over 65% in 2020, outpacing rivals such as Papa John's and Pizza Hut, which touted a more humble growth in digital sales, marking 54% and 49% respectively in the same timeline.
To cast light on Restaurant Brands' distinguishing feature, it’s the variety of brands it owns that makes it stand out. Brands as loved as Burger King and Popeyes that cater to a wide demographic of food lovers are part of its portfolio. This, Bittner believes, can be the powerful driving force behind the company's growth trajectory in the years to come. This theory isn't without precedent. Take the case of Yum! Brands—its suite of brands including Taco Bell, KFC, and Pizza Hut pushed its star high up the fame sky. As evidence, between 2014 and 2019, Yum Brands' share price escalated, showing an over 130% steady increase, highlighting the might of a diverse portfolio.
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