There is a clear distinction among consumers between fast food and fast casual food. The latter is more expensive and arguably more nutritious and delicious. In 2024, fast-casual restaurants like Chipotle Mexican Grill Inc. (NYSE: CMG) and CAVA Group Inc. (NYSE: CAVA) in the retail/wholesale sector were posting comparable (comp) store sales year-over-year (YoY) growth in the 11.4% to 14.2% range, while fast food restaurants like Yum! Brands Inc. (NYSE: YUM) owned Taco Bell, and Pizza Hut struggled with negative to 4% YoY comps sales growth. The tide may be turning for fast food as Taco Bell comps rose to 5% and Chipotle comps fell to 5.4% at the end of 2024.
