Burger King, Coffee Chains Lead Q2 Sales

The second quarter of 2026 delivered clear winners and losers among major restaurant chains. Coffee brands, Burger King, and steakhouse chains saw significant sales growth. Meanwhile, pizza chains and Wendy's struggled with declining traffic and sales, according to an analysis of earnings reports by Restaurant Dive.

Coffee chains were major winners. All three publicly traded brands tracked posted same-store sales growth above 4%. This success is underpinned by sustained consumer demand for cold, caffeinated beverages and a willingness to pay for customization. A National Restaurant Association survey found greater latent demand for coffee expansion compared to other beverages, and that younger consumers are more likely to make beverage-only purchases.

Coffee Chains Post Strong Gains

Starbucks, Dutch Bros, and Black Rock Coffee Bar all reported robust growth. The performance was led by Dutch Bros with an 8.3% comps gain, driven by expanded brand awareness over the last seven quarters and a broader food menu. Starbucks reported a 7.9% increase in U.S. same-store sales, its third consecutive quarter of growth, fueled by labor investments, store remodels, and popular limited-time drinks like the Unicorn Frappuccino. Black Rock Coffee Bar grew comps by 4.2% and reached 200 stores.

Burger King's Turnaround Gains Momentum

Burger King reported a sector-leading 8.5% increase in same-store sales. This performance culminates a multi-year effort involving extensive store remodels since 2022 and a marketing overhaul focused on guest engagement and its core Whopper product. The brand even purchased its largest franchisee in 2024 to speed up remodels. Some success was also contingent on competitor missteps. The chain capitalized on social media buzz around a rival's promotional video earlier in the year.

Steakhouses Regain Popularity

Steakhouse chains proved that diners seeking an experience are driving sales. Longhorn Steakhouse, Texas Roadhouse, and Outback Steakhouse all saw growth, with about 90% of steak dinners now ordered at casual chains according to Cargill data.

Longhorn Steakhouse was a top performer, hitting $1 billion in quarterly sales for the first time with a 9.5% comps increase. Outback Steakhouse, following a turnaround plan, saw comparable sales rise 1.4%-its biggest jump in eight quarters-and improved food scores. Texas Roadhouse continued its growth streak with a 6.2% comps gain, including 3% traffic growth, and plans to open 20 new restaurants this year.

Pizza Sector Faces Structural Challenges

The pizza category had a difficult quarter. Papa Johns suffered an 8.3% same-store sales decline despite launching new menu items. Pizza Hut, set to be sold by parent company Yum Brands, saw a 2% comps decline and a 5% drop in U.S. systemwide sales. Domino's managed a slight 0.9% comps increase, but this fell below company expectations.

Analyst Mark Wasilefsky of TD Bank's Restaurant Franchise Finance Group suggested the sector's woes stem from structural changes. The growth of third-party delivery and digital ordering for all cuisine types has eroded pizza's longtime monopoly on delivery and takeout. "It's been rotten for pizza because they had a monopoly, but it's been great for everybody else," Wasilefsky said.

Wendy's Traffic Declines Continue

Wendy's posted its sixth consecutive quarter of same-store sales declines, marked by a 12.5% traffic drop in the U.S. The decline was partly attributed to several franchisees opting out of breakfast service to refocus on later dayparts. The chain continues to face significant competitive pressure as the QSR sector's price advantage erodes relative to fast casual and casual dining.