Correlation Between Sales And New Product News

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The QSR Hamburger segment has been on a tear since the Great Recession in an effort to drive sales growth with new menu news (strong product development). We wait to see the implications of a slight 2012 slow-down in new product development.
The QSR Sandwich segment pushed hard in 2010 to create new menu news and then took a breather over the last 2 years. In any case, this segment is generally less dependent on new product news (2012 comps are not yet available for these privately held chains).
The QSR Pizza segment demonstrates a 1 year sales lag related to the level of new product news. Less news in year 1 = less sales in year 2 and vice versa. Notably, new product news was down rather substantially during 2012...
The QSR Chicken segment is similar to the Sandwich segment in that 2010 represented a strong year in terms of new product news followed by a breather over the last 2 years. However, we believe segment players are currently focused on quality improvements which is always a good thing.
The QSR Coffee/Bakery segment also significantly ramped-up new product news during 2010 before easing back over the last 2 years. However, segment players may do well to return to new product development judging by a slight slow-down in 2012 YTD comp trends.

Source: RR

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