RBC Restaurant Rundown

Research evidence excerpt

RBC Restaurant Rundown

RBC Capital Markets, LLC

Logan Reich, CFA (Analyst)

(646) 618-6870,

logan.reich@rbccm.com

Emir Akdogan (Senior

Associate)

(212) 301-1601,

emir.akdogan@rbccm.com

June 8, 2026

RBC Restaurant RundownRESEARCH TXRH, WEN, et al

Our view: 1) Restaurants: Competition from c-stores has been an increasing area of investor inquiry

recently, where a 2025 consumer survey found 72% of respondents viewed c-stores as a desirable

alternative to fast food/fast casual, up from 56% in 2024. That said, c-stores have lost food away

from home share, which was 7.08% in 2025 from 7.13% in 2024 (and 7.69% in 2021), suggesting c-

store food growth hasn't been a material headwind to restaurants thus far. 2) TXRH: USDA confirmed

two additional screwworm cases in Texas today, bringing total to four. We'll closely monitor further

developments, though feeder futures are relatively unchanged, and we remain constructive on TXRHEQUITY

given their durable traffic, elevated consumer elasticity on beef as an inflation potential offset, and

futures curve remains in backwardation. 3) WEN: The previously announced Minions meal is launching

on 6/15 (Q2 ends 6/28) against a crowded World Cup marketing calendar, which starts on 6/11.

Separately, we're attending a sell-side lunch and Q&A with the new CEO Bob Wright tomorrow.

Restaurants: Why Your Next Great Meal May Be at a Gas Station (WSJ). Restaurant competition from

gas stations and convenience stores has been an increasing area of investor inquiry recently, where the

WSJ article notes falling tobacco usage and softening beer sales as drivers of c-stores increasingly turning

towards food to drive in-store sales. Per Technomic, 95% of c-stores view food service as strategic priority