U.S. Fast-Food Chains Report Fatter Margins as Cheese, Chicken, Avocado Costs Fall

Major U.S. fast-food chains, including McDonald's, Domino's, and Chipotle, are reporting improved profit margins in the second quarter due to lower ingredient costs, particularly for chicken, cheese, and avocado. The easing of wholesale prices has allowed these chains to benefit from cost reductions after having to raise menu prices during a period of intense inflation. As a result, some fast-food chains are considering lowering prices later this year, with expectations of improved profitability and reduced pressure on franchisees.