Why Americans are snubbing McDonald's and Starbucks

On the surface, it appears that Americans are changing their spending habits when it comes to food and beverages. Major companies in the industry are reporting declines in sales, indicating that Americans are becoming more discerning in their purchases. McDonald’s and Starbucks both reported declines in sales, while Chipotle and Texas Roadhouse saw increases. The trend of seeking deals and splurging on desired items is particularly evident in chain restaurants. This shift in spending habits has been ongoing, with pricing gaps between different types of restaurants narrowing. Despite these changes, the American consumer remains a force in the economy, contributing to the stronger than expected growth rate in the second quarter.