The resilient consumer continues to maintain a steady attachment rate for French fries, despite the demand for them.

• According to Lamb Weston, a greater number of customers are choosing fries with their meals compared to historical norms.
• Despite the decrease in pandemic savings and the increase in inflation, consumers continue to be willing to spend.

Would you like fries to accompany your order?

A top potato supplier stated that the high rate of positive responses indicates the resilience of consumer spending, despite inflation and depletion of pandemic savings.

According to a frozen potato supplier, a greater number of customers are adding the iconic side to their meal orders compared to the past. This trend suggests that Americans are still willing to spend money on everyday luxuries, as evidenced by the strength in the so-called fry attachment rate.

"During the company's earnings call on Thursday, CEO Thomas Werner stated that the fry attachment rate has remained relatively stable. Specifically, he noted that it has been above historical averages for the past two to three years."

Despite mounting reasons to tighten their budgets, consumers continue to make purchases, which is a perplexing phenomenon for economists.

Economists should have taken into account the "fry attachment rate" before Friday's jobs report. Nonfarm payrolls increased by 303,000 jobs in March, exceeding the 200,000 estimate from economists polled by Dow Jones and providing the latest indication of the economy's strength.

In February 2021, spending on retail and food services in America exceeded $700 billion, marking a 1.5% increase from the same month the previous year. This represents a staggering 38.5% increase when compared to February 2019, the month before the pandemic drastically altered the economy.

During the early years of the Covid-19 crisis, rising wages and fiscal stimulus helped to increase consumers' purchasing power, but in recent years, U.S. consumers have been under pressure due to runaway inflation, elevated interest rates, and the end of pandemic-era financial benefits.

Despite a decline in consumer confidence and concerns about an economic downturn, Americans continue to use cash, with some experts calling it "YOLO" or "revenge" spending.

Slowdown elsewhere

Consumers are experiencing financial stress, which influences their food-related monetary decisions, including choosing cereal as a dinner alternative, as stated by CEO Gary Pilnick in an interview with CNBC earlier this year.

Despite the continued popularity of fries among customers, Lamb Weston's sales volume decreased due to lower overall foot traffic in the restaurants it serves, according to Werner. This decline may be attributed to consumers becoming accustomed to higher menu prices as a result of inflation, the executive stated. However, Werner did not specify which companies are experiencing slowdowns.

"While fries continue to be a favorite among consumers, there has been a decrease in the frequency of eating out."

On Thursday, Lamb Weston reported lower-than-expected adjusted earnings and revenue for the fiscal third quarter, and also missed Wall Street forecasts for full-year performance.

On Thursday, the stock price of shares fell more than 19%, reaching its lowest point in over a year.