Industry Insights A roundup of noteworthy foodservice findings for the week of Feb. 1, 2021 - Winsight

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Industry Insights A roundup of noteworthy foodservice findings for the week of Feb. 1, 2021 - Winsight
Industry
Insights
A roundup of noteworthy foodservice findings
for the week of Feb. 1, 2021
I G N I TE C O M PAN Y

McDonald’s Posts
                                                                                                               MCDONALD’S QUARTERLY U.S. SYSTEM SALES
                                                                                                                     YEAR-OVER-YEAR CHANGE %

Strong Q4 Results                                                                                                                     4.4%
                                                                                                                                                   5.3%

Despite a challenging first half of the                      McDonald’s second-half surge allowed
year, McDonald’s managed to end 2020                         the chain to attain positive U.S. sales
on a high note. The quick-service                            growth in 2020, as systemwide sales        0.1%
burger chain achieved U.S. system                            increased by 0.3% on a year-over-year
sales growth of 5.3% during its fourth                       basis.
quarter ended Dec. 31, building on an
increase of 4.4% from the prior quarter.
New product offerings plus several
prominent marketing efforts, like the
Travis Scott Meal, helped boost sales
for McDonald’s over the back half of
2020. The company also benefited
greatly from its vast footprint of drive-
thrus, which helped maintain a steady                                                                                   -8.7%
stream of customer traffic through
                                                                                                       Q1 2020         Q2 2020       Q3 2020      Q4 2020
ongoing indoor dining restrictions.

Sources: Technomic Ignite company data; McDonald’s Investor Relations

© 2021 Technomic, Inc.                                                                                                                                      2
I G N I TE M E N U

Exotic Fruits Find
Momentum
Technomic recently launched its Q4            that could be labeled as good for the
2020 Ignite menu data. With every             immune system would proliferate as the
quarter’s new menu data comes a               pandemic ensues.
plethora of revealing insights. One of
                                              Proliferate they have, and they’re also
the more notable findings is that leading
                                              seeing success with consumers. Back
off the fastest-growing ingredients list
                                              in June, Dunkin’ launched a Strawberry
are now two exotic fruits—kumquats, up
                                              Dragonfruit Refresher that’s made with
75% on menus year over year, and
                                              iced green tea and flavored fruit
dragon fruit, up 71.1%.
                                              concentrate and was touted as having
Kumquats are citrus fruits native to          B vitamins—this item was rated in our
Southeast Asia with a distinctly sour         Ignite menu concept testing database
flavor. Dragon fruits are native to           as having above-average purchase
Mexico and Central America and                intent, draw and craveability, making it
feature a sweet flavor reminiscent of a       one of the few best-in-class items of
kiwi-pear cross. Interestingly, both fruits   2020.
are rich in vitamin C, fiber and
antioxidants, and known to be immunity
boosters. This was a trend we expected
at the onset of the pandemic—foods

                                                                                         Dunkin’s Strawberry Dragonfruit Refresher
Source: Technomic Ignite menu data
                                                                                                      Image Source: Dunkin’ website

© 2021 Technomic, Inc.                                                                                                                3
I G N I TE C O N S U M E R

Top-Rated Brands:                                                                                                  “TREATS ALL CUSTOMERS WITH RESPECT”

Treats All Guests
                                                                                                                  (TOP TWO BOX = AGREE/STRONGLY AGREE)

With Respect
                                                                                                            Cracker Barrel                                  92.3%

Throughout 2020, headlines were                              questions via the consumer brand           Dutch Bros. Coffee                                  91.7%
dominated by stories of restaurant                           metrics program. Among other
industry struggles and resilient triumphs                    important brand image attributes, recent
in the face of a devastating pandemic.                       guests at each chain were asked
                                                             whether they agree that the brand treats
Long-standing calls for racial equality and                                                                    First Watch                                 89.7%
                                                             all guests with respect.
inclusivity throughout the industry
received fresh energy and urgency as
well, reminding many that the long-term
importance of these issues may outlast                                                                          Five Guys                                  89.1%
today's focus on dealing with COVID-19.
In order to understand consumer
perceptions of these important issues
at the chain brand level, Ignite                                                                           Chain Average                                 82.6%
Consumer began tracking new

Base: 54,610 total consumers, with 350 reent guests per chain tracked, Q3 2020-Q4 2020
Source: Technomic Ignite consumer featuring consumer brand metrics data

© 2021 Technomic, Inc.                                                                                                                                              4
G L O B AL F O O D S E RV I C E N AV I G ATO R

The World’s
Fastest-Growing
Pizza Chains                                                                                         Chain Name
                                                                                                                     TOP 3 FASTEST-GROWING GLOBAL PIZZA CHAINS

                                                                                                                          HQ Country    Segment   2019 Global Units    % Change
With a craveable product conducive to                    pizza category: Domino’s (No. 6), Pizza
LTOs, affordable price points and                        Hut (No. 7), Little Caesars (No. 16) and
delivery-friendly format, pizza operators                Papa John’s (No. 23).                       Dodo Pizza           Russia        LSR                      576      31.2%
have fared relatively well amid the
                                                         Dodo Pizza of Russia and L’Osteria of
ongoing pandemic and that’s expected
                                                         Germany are the two fastest-growing
to continue as we head into whatever                                                                 L'Osteria            Germany       FSR                      132      25.7%
                                                         Global 150 pizzas chains, coming in at
kind of “next normal” that awaits us.
                                                         an increase of 31% and 26%,
Here’s a look at the state of the pizza                  respectively.
                                                                                                     Pizza Company, The   Thailand      LSR                      570       8.0%
category from a global perspective,
                                                         Reach out to Technomic for more
informed by Technomic’s upcoming
                                                         information about the fastest-growing
Global Pizza Menu Category Report,
                                                         global and local pizza chains detailed in
slated to release this spring.
                                                         the soon to be released category report.
Among the Global 150 chains—
Technomic’s ranking of restaurant
chains with global reach—four brands
within the largest 25 players are in the

Source: Technomic Global Foodservice Navigator Program

© 2021 Technomic, Inc.                                                                                                                                                      5
COVID-19 DISRUPTION INDEX

COVID-19 Disruption Index is                Change Versus Previous Week and
powered by Shortest Track, utilizing AI,    Month
machine learning and disparate sets of      Change versus previous week/month
data resources to quantify the potential    allows users to see if the market is                                              COVID-19      PERCENT      PERCENT
                                                                                     TOP 5 MOST DISRUPTED MARKETS
risks that U.S. businesses face from the    becoming more or less disrupted over                                    DISRUPTION INDEX         CHANGE       CHANGE
                                                                                         BY INDEX POINT CHANGE
spread of the COVID-19 virus at the         time. Changes that are positive (+)         (VERSUS PREVIOUS WEEK)
                                                                                                                       (MAX: 1.00, HIGH      VERSUS       VERSUS
                                                                                                                          DISRUPTION)     LAST WEEK   LAST MONTH
market level.                               show a move toward becoming
                                            increasingly more impacted by COVID-
The highest index possible is 1.00,         19 (not good). Changes that are
which is not good and reflects markets      negative (-) show a trend toward being        Hilton Head Island-
                                                                                     1                                          0.177        6.80%       14.90%
that are extremely disrupted. The index     less impacted by COVID-19 (good).             Bluffton-Beaufort, S.C.
is updated on a weekly basis.
                                                                                     2    Columbia, S.C.                        0.306        3.74%        9.25%
                                            Ignite Subscribers: Download full
The COVID-19 Disruption Risk Index          market report
shares weekly updates through a                                                      3    Florence, S.C.                        0.326        3.48%       10.95%
business lens, rather than a health lens,
and incorporates more than 20 different
data signals to measure disruption and                                               4    Pittsfield, Mass.                     0.422        2.65%        6.70%
predict future impact. These signals
include infection rates, deaths, state-
level restrictions and social distancing                                             5    Savannah, Ga.                         0.181        6.40%       11.47%
requirements, population densities and
mobility, group size limitations and
lifestyle risk factors contributing to
spread. More information is available
HERE.

Notes: Data updated Jan. 25, 2021
Source: Shortest Track

© 2021 Technomic, Inc.                                                                                                                                             6
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© 2021 Technomic, Inc.
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