Walmart CFO: Diners Opt for Groceries Over Fast Food

As customers notice some grocery prices stay the same or get cheaper, the gap between food at home and dining out continues to expand, incentivizing grocery shopping, said Walmart CFO John David Rainey on a call with CNBC on Thursday, reports CNBC.

“It’s roughly 4.3 times more expensive to eat out than it is to eat at home,” said Rainey. “and that’s benefiting our business.” The executive added that some of the retailer’s recent sales growth came from customers choosing home cooking over meals at quick-service restaurants.

The data backs up the claim: as Walmart posted strong quarterly gains, foot traffic to fast-food and fast-casual chains fell by 3.5 percent, according to Revenue Management Solutions. Restaurant executives blamed inclement weather and consumer slowdown for the decreased traffic, particularly among lower-income diners, according to the report.

In April, U.S. Labor Department data showed that the price of food at home was up 1.1 percent year-over-year, whereas, over the same period, food away from home shot up 4.1 percent, highlighting the growing gap between the two.

In an earnings call Thursday, Walmart U.S. CEO John Furner said that the retailer can use Bettergoods, its newest private label offering, as a tool to compete with restaurants. Full Story