Fast food is too expensive and consumers are pushing back; how people are earning and spending in Buffalo

Taco Bell, KFC and Pizza Hut’s parent company is facing the same problem as its rivals: Fast food is getting too expensive and consumers are pushing back.

Yum Brands, which owns all three chains, reported Wednesday weaker-than-expected sales in the fourth quarter. Despite the miss, shares rebounded in midday trading after initially falling, and are now up more than 3%.

In particular, Taco Bell, typically the company’s most popular chain, reported sales at restaurants open at least a year grew 3% for the quarter — a steep decline from the 11% growth it registered for the same quarter a year earlier when a revamped breakfast menu and the Mexican Pizza fueled sales.

Part of the problem: Although grocery prices are still high, they rose just 1.3% overall in 2023, compared to dining out, which surged 5.2%, according to the latest Consumer Price Index report. That’s putting pressure on lower-income consumers, a vital base for fast food chains.

Here’s what people are earning and spending in Buffalo.