Burger King’s parent company says more and more customers are redeeming coupons and loyalty rewards

More customers at Burger King and its sister brands are redeeming coupons and loyalty program rewards as inflation pushes menu prices higher.

International restaurant brand CEO Jose Cil told CNBC that the company hasn’t noticed any significant changes to what diners are buying from its restaurants. Its chains, which include Popeyes Louisiana Kitchen and Tim Hortons, raised menu prices this year to mitigate rising costs on key ingredients like chicken and coffee.

But Cil notes that the broader fast-food sector is seeing low-income consumers spend less money on burgers and fries, while higher-income diners seem to be spending less money on burgers and fries. like switching to casual dining or casual restaurants. Owner of KFC Brand Yum, McDonald’s and Mexican Grilled Chipotle it’s all been told recently investors that they are seeing trends emerge.

Instead of selling fewer fusion meals, Restaurant Brands eateries are seeing an increase in customers redeeming paper coupons and loyalty program rewards for discounts on their meals.

“It shows people are looking for good value for money,” Cil said.

Burger King has withdrawn paper coupons in recent months in an effort to push consumers to download its mobile app and join its loyalty program. In exchange for points for free menu items, the burger chain learns more about its customers and how to target them more effectively with promotions and offers.

The strategy is part of a larger shift to Burger King’s U.S. business, which has struggled to keep up with rival burger chains in recent quarters. this. Restaurant Brands is expected to reveal plans to revive its business in September.

Shares of Restaurant Brands jumped more than 6% in afternoon trading after company reports improving demand for Tim Hortons coffee and international sales growth at Burger King.