Financial Overview November 2006
Increase in Profits
A 50-percent increase in first-quarter profits was reported by BRINKER INTERNATIONAL INC., operator and franchisor of 1,662 Chili's Grill & Bar, Romano's Macaroni Grill, Maggiano's Little Italy and On The Border Mexican Grill & Cantina outlets, driven by restaurant openings and reduced expenses that offset continued soft same-store sales.
Third-quarter profit nearly doubled from a year ago at BUFFALO WILD WINGS INC., operator and franchisor of 415 namesake locations. Profit totaled $3.5 million for the three months ended Sept. 25 versus $1.9 million in last year's third quarter.
Third-quarter profits at MCDONALD'S CORP. jumped 14.7-percent on a 10.4-percent rise in corporate revenues last month. The company attributed this increase to dramatic improvements in the capacity and service of 5,000 drive-thrus at test locations worldwide. Revenues for the third-quarter rose 10.4 percent to $5.88 billion.
For the four weeks ended Oct. 9, CKE RESTAURANTS INC. reported same-store sales gains of 7.2 percent at its Carl's Jr. chain and 7.6 percent at its Hardee's concept versus the same period a year earlier.
A 20.9-percent jump in third-quarter net income was posted by DOMINO'S PIZZA INC. despite a comparative decline in corporate revenues, versus year-earlier results.
For the quarter ended Sept. 9, YUM! BRANDS INC.'s earnings were $230 million versus $205 million a year earlier. From year earlier results, Yum! Brands Inc. recorded a 12.2-percent increase in third-quarter profit and a 1.6 percent jump in total revenues, as higher sales and profits from its China and international divisions offset a 2-percent decline in blended U.S. same-store sales.
A 2.7-percent increase in third-quarter same-store sales versus year earlier results was posted by BUCA INC., for its Buca di Beppo dinnerhouse chain.
Third-quarter revenues jumped 11 percent from a year earlier to $325 million at THE CHEESECAKE FACTORY INC., operator of 119 namesake and Grand Lux Cafe restaurants, however, systemwide same-store sales fell 1.6 percent.
Fiscal September same-store sales at DARDEN RESTAURANTS INC. showed gains of 5 percent to 6 percent by its Olive Garden chain and 2 percent to 3 percent at by Red Lobster, versus results of the same period last year.
For fiscal 2006, ended Oct. 1, STARBUCKS CORP., operator or licensor of 12,440 coffeehouses worldwide, reported a 22-percent jump in annual revenues to $7.8 billion.
Third-quarter same-store sales at WENDY'S INTERNATIONAL INC. increased 4.1 percent at U.S.-based corporate restaurants and 3.9 percent at domestic franchised units for the three months ended Oct. 1, marking the chain's largest year-to-year quarterly gain in two years.
A 13.8-percent increase in third-quarter corporate revenues to $231 million was reported by P.F. CHANG'S CHINA BISTRO INC.; however, they said that same-store at its namesake chain dipped 0.5 percent from a year earlier despite a 2.5-percent menu price increase.
For the four weeks ended Sept. 22, BOB EVANS FARMS INC. reported a 5-percent same-store sales gain at its Bob Evans family-dining chain. Additionally, same-store sales for the company's Mimi's Cafe chain rose 3.3 percent for the same period, compared with a year earlier.
Decrease in Profits
A profit or $72 million for the third-quarter at WENDY'S INTERNATIONAL INC., operator and franchisor of more than 6,600 Wendy's burger units was flat versus $72.1 last year.
As costs related to its spinoff from WENDY'S INTERNATIONAL INC. offset a revenue gain of about 7 percent, TIM HORTONS INC., operator and franchisor of 2,942 namesake fast-casual outlets, reported a 22-percent dip from a year earlier in third-quarter profit.
For the four weeks ended Sept. 26, the last month of the company's third quarter, revenues for that timeframe rose 29.7 percent at PANERA BREAD CO., driven by a 5.9-percent systemwide same-store sales gain. Despite a 38-percent rise in revenues to $205 million, Panera Bread Co., the 976-unit bakery-café chain, reported a 6.8-percent drop in third-quarter profits.
An $8 million loss was recorded by RARE HOSPITALITY INTERNATIONAL INC. due to the loss from discontinued operations on its September decision to sell the 32-unit Bugaboo Creek Steak House chain and had a third-quarter net loss of $3.5 million versus year-ago profit of $9.6 million.
A 33-percent decline in third-quarter profit was reported by APPLEBEE'S INTERNATIONAL INC., parent company of the 1,892-unit Applebee's Neighborhood Grill & Bar brand as several charges offset a 5-percent increase in corporate revenues.
Third-quarter profit decreased at IHOP CORP., franchisor and operator of 1,278 IHOP or International House of Pancakes restaurants, from a year earlier to $11.3 million.
A 22-percent drop in third-quarter net income was reported by P.F. CHANG'S CHINA BISTRO INC., operator and franchisor of 142 namesake dinnerhouses and 97 Pei Wei Asian Diners, as corporate expenses and weak same-store sales offset a 13.8-percent rise in revenues.
Third-quarter earnings at LONE STAR STEAKHOUSE & SALOON INC. dropped 77.8 percent to $214,000 from the $964,000 earned in the same quarter last year. Corporate revenue fell 1.1 percent to $138.4 million. According to the company, sales at the Lone Star chain were restrained by economic factors that curtailed consumer spending, but also by the company's decision to reduce print pieces in its direct-mail program and to discontinue coupon marketing.
Owner and operator of 333 grill-buffet restaurants, RYAN'S RESTAURANT GROUP INC., stated that for the four weeks ended Sept. 27, total sales fell 2 percent to $56.3 million and declined 5 percent to $193.2 million for the third quarter, also ended Sept. 27, versus the same periods a year earlier.
A third-quarter net loss of $547,169 was reported by MERITAGE HOSPITALITY GROUP INC., operator of 48 franchised WENDY'S restaurants and five franchised O'CHARLEY'S restaurants, versus a loss of $460,197 in the year-earlier quarter. According to Meritage, the O'Charley's restaurants have continued to underperform for the quarter ended Aug. 27.
According to the company, O'CHARLEY'S INC. said it now expects third-quarter per-share earnings to total 9 cents, down from its previous forecast of 11 cents to 16 cents. O'Charley's Inc. operates and franchises 357 restaurants under the O'Charley's, Ninety Nine Restaurant and Stoney River Legendary Steaks brands.