First Watch, Portillo’s and KFC

A new menu and marketing strategy gave First Watch a boost last quarter. The redesigned menu, which spotlights drinks and seasonal specials, encouraged customers to order more add-ons and upgrades in the period, contributing to a same-store sales increase of 2.8%. The brand is also getting good results from targeted digital marketing, now in place across 75% of the system. Traffic was down 2%, with price and menu mix driving sales growth in the quarter.

Value deals helped Portillo’s drive traffic in the right direction in the fourth quarter. But the upward turn was modest. Transactions were up 0.

8% for the Chicago-based chain, though the increase was offset by a 0.9% decrease in the average check, resulting in a same-store sales decline of 0.1%.

In his first earnings call as CEO, Brett Patterson said he was encouraged by the improvement, despite Portillo’s swing to a loss for the March 29-ended quarter. The chain is rethinking growth. Portillo’s expects to open 8 restaurants this year, five of which have opened.

Next year, it will likely be more like four to six. Meanwhile, CFO Michelle Hook announced her departure from Portillo’s, after six years with the chain.

KFC has evolved its $10 Tuesday bucket deal. The chain is expanding it to a “Bucket of the Day” promotion, bringing a $10 bucket to customers each weekday, such as 24 nuggets and four sauces on Mondays, and 10 wings and two sauces on Wednesdays. This is the latest value play from KFC as the promotional environment remains intense.

In March, the chain launched a lineup of Box Feasts with $7, $9, and $11 options. KFC also launched two new sauces, a honey chili crisp sauce and a jalapeno ranch sauce. The company’s CEO Scott Mezvinsky told the Wall Street Journal’s “Future of Everything” crowd on Monday that sauces were going to be a bigger part of the company’s innovation pipeline in the U.

S. as it looks to regain lost market share.