People taking popular weight loss drugs such as Ozempic and Munjaro spend less on restaurants and takeout orders, according to a new study.
A Morgan Stanley AlphaWise study released last week found that a staggering 63% of people using a drug called GLP-1 cut pounds less at restaurants than they did before they started taking the prescription drug. He says his expenses have decreased.
Additionally, of the 300 U.S. patients surveyed by Morgan Stanley taking GLP-1, 61% reduced spending on takeout and delivery. CNBC Previously reported.
“There is growing evidence that drugs have a significant impact on consumer behavior and spending on groceries and restaurants,” Morgan Stanley analysts concluded.
“All of these moves will increase the impact of GLP-1 drugs across the consumer sector as drug intake increases and drugs reshape the behavior of demographic groups that account for a disproportionate share of calorie consumption. It suggests that.
By 2035, an estimated 31.5 million people, or approximately 9% of the U.S. population, will be taking GLP-1.
GLP-1 drugs, most of which are injectables, contain powerful drugs that mimic the effects of the GLP-1 hormone, which is released by the pancreas after meals and causes a feeling of fullness.
Still, Morgan Stanley analysts asserted that changes in consumer spending habits won’t have a significant impact on restaurant profits.
“Restaurants offer convenience and experience in addition to food, and the use of GLP-1 does not change that,” analysts said, according to CNBC.
Rather, he added, some restaurants may need to change their menus to appeal to more health-conscious customers, and healthier chains like Cava, Chipotle, Sweetgreen, and Starbucks are trying to improve their consumption. He noted that the company is well-positioned to adapt to changes in spending habits among consumers.
Meanwhile, “more upscale” fast-casual restaurants such as Jack in the Box, Wendy’s, Wingstop, Shake Shack and Portillo’s could come under additional pressure, according to Morgan Stanley.
Snack and beer retailers are already warning that Ozempic and Wegoby, drugs originally created as anti-diabetic drugs and later popularized for their appetite-suppressing properties, are influencing consumer behavior. .
According to CNBC, Morgan Stanley warned that Hershey is the packaged food company most at risk given its large portfolio of consumer-focused snack foods in the United States.
For reference, Hershey’s portfolio includes candy brands like Reese’s and Kit Kats, as well as salty options like Pirate Booties, Skinny Pop popcorn, and Dot Homestyle Pretzels.
Meanwhile, snack giants like Vital Farms, whose motto is “keep the cow out,” Bellring Brands, a premier protein beverage maker, and Simply Good Foods, which makes Quest Nutrition products, are Trying to profit from GLP. -1s is popular according to Morgan Stanley.
Last year, John Furner, head of Walmart’s US division, told Bloomberg News that Ozempic was the reason customers were “buying fewer items” and consuming “slightly fewer” calories.
“We’re definitely seeing a slight change relative to the total population, and we’re seeing a slight setback across the basket,” Furner said at the time.
Farner’s comments sent shares in Swiss snack conglomerate Nestlé, Kraft Heinz Company and Oreo maker Mondelēz International plunging, as did beer giant Constellation, the U.S. distributor of Modelo Especial.・Brands also fell.
