Life in the fast (food) lane: Fast food companies are picking up market steam
By Jack Herbert • August 2, 2019
The past couple of years have proved to be cash cows for fast food chains. Fast food brands like McDonald’s, Taco Bell, Chipotle, and Shake Shack have helped the fast food industry outperform the S&P by 27% over the last 12 months. Some of the credit is due to fast food companies investing in digital engagement, but there are other factors at play.
Goldman’s research team estimates 70% of the industry’s growth over the past 5 years can be linked to rising wages and flourishing third-party apps like Uber Eats. You would think rising wages would hurt the “cheap food” business, but, as gas prices stay steady, the rising paychecks of minimum-wage workers is leading to more cash dropped at the drive-thru.