Growth at Fast Food Joints Like Wendy’s Looks Soggy Next to Casual-Dining Chains

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There's only one place you can sit in a booth surrounded by Egyptian columns, European-style frescos, and fiery blown-glass light fixtures that resemble the Eye of Sauron and scarf down a slice of "Reese's Peanut Butter Chocolate Cake Cheesecake." That's Cheesecake Factory of course, which, along with other kitsch dine-in chains, is having a moment as diners ditch fast food for sit-down experiences they can't have at home (or so one hopes).

Chains including Cheesecake Factory, BJ's, IHOP and Chili's have seen sales and foot traffic climb alongside their shares, while fast-food companies like Wendy's are struggling to keep sales warm.

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The casual-dining sector seemed to start its comeback last year, with sales among 500 chains tracked by Technomic climbing 2.9%. That's a pickup in pace compared with 2024's 1.5% growth. Chili's led the charge with double-digit growth last year. As of last quarter, the Triple Dipper-seller has been on a growth streak for five years . Cheesecake Factory, meanwhile, saw sales climb 5.8% and foot traffic rise 2.7%, and it's a similar story for BJ's, IHOP and Darden-owned locales including Olive Garden and LongHorn Steakhouse.

Fast-food restaurants, on the other hand, are missing traffic as diners' back-of-the-napkin math seems to favor value from sit-down chains:

McDonald's reported sales growth of less than 1% in its most recent quarter. While customers spent more per check, traffic fell. McDonald's had rolled out a national discounting strategy to bring value-conscious diners back, but CEO Chris Kempczinski said many franchises didn't get with the program.