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Walmart says more diners are buying its groceries as fast food gets pricey

by Busines Newswire
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Fast food is getting expensive, and people are noticing! Because of this, Walmart, the giant grocery store chain, is seeing more customers. Their boss, John David Rainey, said on TV that many people cook at home instead of eating out. It makes sense – eating at home is almost four times cheaper than a quick fast-food meal!

Walmart exceeded Wall Street’s forecasts for its quarterly sales and revenue. It stated that it expected its full-year results to be on the high end of, or higher than, its previous prediction, sending its stock skyrocketing to an all-time high on Thursday. Due to increased visitors visiting its stores and website, transactions increased by 3.8% in the US.

Walmart Seeing a Boom in Fast Food Prices

Meanwhile, restaurants like McDonald’s, Starbucks, and Yum Brands (which owns KFC, Pizza Hut, and Taco Bell) are having a rough time. Fewer people are visiting these restaurants – business is down 3.5%! Restaurant owners say bad weather and careful customers, especially those with less money, are to blame.

The price difference is big. The government tracks how much groceries cost, and they say prices have only increased slightly (1.1%) over the past year. But eating out has become much more expensive (4.1% increase)! Remember that crazy expensive Big Mac combo that went viral on social media? That shows how much fast food prices are jumping. McDonald’s had to explain why their food is so pricey, and their sales haven’t However, Chris Kempczinski, McDonald’s CEO, stated in an interview on CNBC Live Stream that shoppers are looking for discounts, especially those with lower incomes. Starting on June 25, the restaurant chain will offer a $5 value dinner for around a month.

Not all restaurants have had difficulty charging more; fast-casual companies like Sweetgreen, Wingstop, and Chipotle have reported robust sales in recent quarters.

Walmart’s Secret Strategy to Increase Sales

Walmart isn’t just relying on rising fast-food prices to win customers. They’ve introduced a new brand: Bettergoods, a premium grocery line. This exciting brand caters to health-conscious shoppers and those with specific dietary needs, offering unique flavors and specialty items. Think gluten-free options, plant-based alternatives, and delicious treats like strawberry cream, Greek yogurt, curry chicken empanadas, restaurant-style wings, and even salted caramel oat milk ice cream.

What is the best part? Seventy percent of Bettergoods items cost less than $5, making them an appealing option for families trying to feed a crowd without breaking the bank. With its low prices and inventive offers, Bettergoods positions Walmart as a serious opponent in the battle for dinner plates, not just wallets.