Heather Haddon

By some measures, U.S. restaurants are booming. But while takeaway-oriented chains have emerged as winners, many smaller sit-down establishments struggle.

Shake Shack is snapping up Papa John’s chief executive as the new head of the burger chain, its first outside CEO since 2004. New York City-based Shake Shack said Thursday that Rob Lynch, 48, will take over as CEO on May 20. Lynch has served as Papa John’s CEO since 2019, and previously led sandwich chain Arby’s. Randy Garutti, who helped open the first Shake Shack with restaurateur Danny Meyer in 2004, and has served as its CEO since its 2015 IPO, will remain as an adviser for the rest of the year.

Lower-income consumers are scooping up fewer Olive Garden breadsticks, another sign of cash-strapped Americans pulling back on discretionary spending. Parent company Darden Restaurants said Thursday that orders from customers earning less than $50,000 fell last quarter versus a year earlier. “We're clearly seeing consumer behavior shifts,” Darden Chief Executive Rick Cardenas said during an earnings call.

A dinner date at Applebee’s is one of the hottest tickets in American dining, thanks to escalating food prices.

Despite repeated price increases, the burrito chain is outperforming restaurant competitors with customers who tend to have higher incomes and be health conscious.

Domino’s said that amped-up promotions and marketing helped it ring up more sales across income groups last quarter. The pizza-restaurant chain said that a revamped loyalty program and advertising on Uber Eats boosted business, with delivery and pickup orders both increasing. Domino's shares were up 2.7% shortly after the opening bell.

McDonald’s said that consumers are tightening their spending as the burger chain reported lower-than-expected quarterly sales growth. The company on Tuesday reported global same-store sales growth of 1.9% in its first quarter, slightly below analysts’ expectations. Conflict in the Middle East continued to drag on McDonald’s international licensed business, the company said, and executives have said that lower-income consumers generally are struggling to manage higher costs.

McDonald’s said consumers across the globe are tightening their spending as the burger chain reported lower-than-expected quarterly sales growth. Executives said Tuesday that economic pressure is building on consumers, resulting in declining restaurant visits across the industry. McDonald’s for months has warned of a weakening economy, but executives said the headwinds so far this year are steeper than previously anticipated.

The pullback in consumer spending at restaurants is hitting KFC and Pizza Hut. Yum Brands, the parent company of the chains, reported a 3% quarterly decline in global same-store sales, becoming the latest restaurant operator to report lower-than-expected sales. Yum reported a slowdown in sales in KFC and Pizza Hut stores located in the Middle East.

After years of price increases, food companies say more consumers pull back. Fast-food chains and snack makers plan new deals and flavors.