Coca-Cola says fewer people are eating dinner out, and it's hurting sales of its drinks

• Some diners are eating out less often — and it's hitting Coca-Cola's sales in North America.
• There's been "some softness in away-from-home channels," CEO James Quincey told investors.
• Coca-Cola has been working with restaurants to market combo meals and boost sales, he said.

Coca-Cola says it's feeling the strain as fewer penny-pinching diners eat out.

CEO James Quincey told investors on Tuesday that there had been "some softness in away-from-home channels" in North America.

Lower-income diners are eating at restaurants less frequently, but when they do dine out, they're looking for combo deals, he said.

To reel in customers, Coca-Cola has been working with restaurants to market food and drink combo meals, Quincey said. Bloomberg reported that the company had provided some funding for McDonald's $5 summer combo deal.

Consumers have told Business Insider that they've noticed restaurant prices — especially at fast-food chains — creeping up and are eating out less as a result. Restaurants have been trying to bring diners back by knuckling down on combo deals, such as McDonald's $5 offering. Fast-food combo deals typically include a burger, sandwich, or chicken with fries or another side and then a drink — like a bottle of Coke.

The cost of meals at restaurants boomed at the start of the pandemic, but the price increases are now cooling, inflation data from the Bureau of Labor Statistics shows.

Coca-Cola reported a 1% drop in unit case volume for its North America business in the quarter to June 28, which it attributed to declines in sales of water, sports drinks, coffee and tea, Trademark Coca-Cola, and sparkling drinks.

But other parts of its business performed much better. Coca-Cola posted a 3% increase in total quarterly net revenues to $12.4 billion, beating earnings estimates.