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McDonald's set for weak sales growth as US fast-food chains grapple with muted traffic [Yahoo! Finance]
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about eating out even as fast-food chains battle to lure them with value menu items. The burger giant will report first-quarter results on Tuesday, kicking off earnings for U.S. restaurant chains, with top players such as Starbucks and KFC-parent Yum Brands set to report results later in the week. "We expect traffic to continue to be negative and believe the average check will remain under pressure from the heavy discounting to recover lower-income consumer traffic," BTIG analyst Peter Saleh said. McDonald's has leaned on its Dollar Menu, offering items in the $1, $2, $3 price points to lure in diners on a budget, while Wendy's this month offered some items for just a dollar on orders placed via apps. Taco Bell also launched a new Cravings Value Menu for some burritos and tacos at $3 or less in January. THE CONTEXT After a slow start to the year at McDonald's owing to inclement weather in January and choppy spending due to still-high inflation, Wall Street analysts believe d
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