A Roundup of Noteworthy Foodservice Findings for the Week of Feb

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

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

Strong Q4 Results 5.3% 4.4%

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

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

Top-Rated Brands: “TREATS ALL CUSTOMERS WITH RESPECT” (TOP TWO BOX = AGREE/STRONGLY AGREE) Treats All Guests 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 all guests with respect. First Watch 89.7% 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 GLOBAL FOODSERVICE NAVIGATOR The World’s Fastest-Growing Pizza Chains TOP 3 FASTEST-GROWING GLOBAL PIZZA CHAINS Chain Name 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 Global 150 pizzas chains, coming in at L'Osteria Germany FSR 132 25.7% 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

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 (MAX: 1.00, HIGH VERSUS VERSUS spread of the COVID-19 virus at the time. Changes that are positive (+) (VERSUS PREVIOUS WEEK) market level. show a move toward becoming DISRUPTION) LAST WEEK LAST MONTH increasingly more impacted by COVID- The highest index possible is 1.00, 19 (not good). Changes that are Hilton Head Island- which is not good and reflects markets negative (-) show a trend toward being 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

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