Forget the drive-thru. Walmart wants diners to find a value meal in its grocery aisles.

As fast food becomes more expensive, the nation’s largest grocer sees a significant sales opportunity. Walmart's Chief Financial Officer, John David Rainey, emphasized this during a call with CNBC on Thursday. He noted that part of Walmart's sales growth in the recent quarter was driven by customers seeking more affordable meal options in its grocery aisles, rather than turning to quick-service restaurants.

“It’s roughly 4.3 times more expensive to eat out than it is to eat at home,” Rainey said. “And that’s benefiting our business.” With some grocery items maintaining stable prices or even becoming cheaper, the disparity between dining out and cooking at home has widened, presenting a clear advantage for Walmart.

Walmart’s stock soared to an all-time high on Thursday after surpassing Wall Street’s quarterly sales and revenue expectations. The company also projected that its full-year results would meet or exceed its previous forecasts. Transactions in the U.S. increased by 3.8%, as more customers visited its stores and website.

Walmart’s robust store traffic and quarterly results contrast sharply with those of several restaurant companies, including McDonald’s, Starbucks, and Yum Brands. According to Revenue Management Solutions, foot traffic to limited-service chains, encompassing fast-food and fast-casual restaurants, declined by 3.5% in the first quarter. Restaurant executives attributed this decline to inclement weather in January and February, as well as a slowdown among lower-income diners.

McDonald’s, in particular, has faced criticism over its pricing. An $18 Big Mac combo at a Connecticut franchise went viral on social media, prompting company executives to defend their pricing strategy during a conference call. Despite this, McDonald’s reported disappointing U.S. same-store sales growth of 2.5%, indicating a decline in foot traffic for the quarter. McDonald’s CEO Chris Kempczinski acknowledged that consumers, especially those with lower incomes, are seeking out deals. In response, the chain plans to offer a $5 value meal starting June 25 for approximately one month.

Not all restaurants have struggled with price hikes. Fast-casual chains such as Chipotle, Wingstop, and Sweetgreen reported strong sales in their most recent quarters. This suggests that some consumers are still willing to pay higher prices for perceived value and quality.

Inflation data from the U.S. Labor Department underscores the price difference between home-cooked meals and dining out. As of April, the price of food at home, which includes groceries and other food store purchases, increased by 1.1% year over year. In contrast, the price of food away from home, such as restaurant meals, rose by 4.1% over the same period.

On Walmart's earnings call Thursday, Walmart U.S. CEO John Furner highlighted a new tool in Walmart’s arsenal to compete more aggressively with restaurants: its new grocery brand, Bettergoods. This premium line features unique flavors and merchandise tailored for health-conscious customers or those with special diets, such as gluten-free or plant-based items. Examples include strawberries and cream-flavored Greek yogurt, curry chicken empanadas, restaurant-style chicken wings, and salted caramel oat milk ice cream.

Furner emphasized that 70% of Bettergoods' items are priced under $5, a price point likely to attract shoppers “trying to feed a family of four, five, [or] six.” This strategy aims to position Walmart as a viable alternative to dining out, especially for budget-conscious families looking for high-quality, affordable meal options.

By focusing on providing affordable, high-quality grocery options, Walmart is capitalizing on the growing trend of consumers preferring to cook at home due to rising restaurant prices. This approach not only drives traffic to Walmart stores but also strengthens its competitive edge in the grocery market, particularly against fast-food chains.