Brinker International, Inc.
With food costs set to soar by 3%-5% this year, restaurants that are able to lower expenses or drive up prices without losing customer will come out on top. The relatively low barriers to entry in the industry put pressure on these companies to price their menu items attractively, something that can be hard to do with the current food-cost woes.
Texas Roundhouse faces pressure from rising beef prices more »
I have to admit, I didn’t see this one coming. I’m willing to admit when a company shocks me with an outstanding earnings report. Buffalo Wild Wings (NASDAQ: BWLD) just reported blowout earnings, and they also seem to have solved one of the biggest problems facing the company at the same time.
The Trouble With Being Chicken
I found out about Buffalo Wild Wings from multiple articles on more »
The U.S. economic recovery is expected to increase U.S. restaurants’ revenue to $660 billion in 2013, which is a 3.8% increase from 2012 . As customers have more disposable income, they tend to spend more on dining in restaurants. To capitalize on this opportunity and draw in customers, restaurant companies are upgrading their menus and remodeling their restaurants.
While analyzing the restaurant industry I came across Brinker International more »
It always surprises me to see a little bit of Americana in Asia, particularly Tex-Mex chain Chili's Grill & Bar. Brinker International (NYSE: EAT) has done a great job with Chili's international expansion and creating a restaurant concept that diners enjoy and love. According to the company's website:
Every day from Chicago to Cairo, more than a million people dine at Brinker International restaurants.
What I like about more »
Under the circumstances of low consumer confidence, customer allegiance threatens restaurants continually. According to the National Restaurant Association (NRA), “on average, repeat customers represent sales of 71 percent of quick service, 68 percent of fast casual, 64 of casual dining, 63 percent family dining and 51 percent of fine-dining restaurants.”
Source: National Restaurant Association, July 29, 2013
The chart shows the restaurant industry maintaining a 47% share of the food more »
If you ever had a meal at a restaurant that did not meet your expectations, don’t be quick to blame the chef. The lack of scale in delivery could have contributed to slower delivery of food supplies and a lower quality of the final product. But the restaurant about which I'm going to speak is different.
Chipotle Mexican Grill (NYSE: CMG) is celebrating 20 years of its existence in 2013. Backed with an operating experience of two decades, it has redefined the concept of fast-food restaurants. This company went public in 2006 and has appreciated a massive 875% since then. It recently declared its second-quarter financial results, which were strong and bear a testament to the company's strong brand.
In the recently reported more »
The recent economic recession forced many restaurants to close their doors. Others took refuge on price hikes, while yet others focused on internal efficiency. Let us take a look at future prospects for full-service restaurant Darden (NYSE: DRI), international operator Brinker (NYSE: EAT), and fast-food giant McDonald's (NYSE: MCD) , to discern what their strategy is, and what the future holds for them.
Known tastes for profits
Headquartered in Oak more »
The global restaurant industry is expected to witness a annualized growth rate of 7.2% over the next three years. Consequently, global restaurant revenue can increase from almost $2.5 trillion in 2011 to $3.5 trillion in 2016. Therefore, the companies in this sector are adopting various strategies to attract customers. Three companies are adopting a strategy to re-image their restaurants to enhance customer experience, which should drive sales more »
For example, Bloomin’ has appreciated 44%, whereas Brinker and Darden have appreciated 24% and 11%, respectively. At first glance, this might make you think that Bloomin’ Brands is likely to be the best of the three. However, this might be a mistake.
The good news
Bloomin’ Brands offers more »
The short position on The Cheesecake Factory (NASDAQ: CAKE) continues to increase and it now stands at 13.30% of float. This lofty number might not make sense to the average investor considering the company’s margins are good and revenue is growing. And those aren’t the only positives. Management is also obsessed with finding ways to cut costs, which is a good sign as it leads to improved more »
Casual dining represents a great market in the United States. There have been many success stories of roadside eateries becoming giants because of their famous product offerings. The restaurant industry in the United States has leveraged its growth on the casual dining market.
As the population of United States becomes more multicultural consumers have started to demand different tastes. There is also a rising trend of quick service retail and more »
Weak economic growth in the U.S. has dampened sales prospects for many restaurant chains, which now must fight intensely for each customer they get. Although the industry continues to recover in terms of sales growth, the cloudy jobs picture remains troublesome for restaurant chains' management. The labor force participation rate remains at historically low levels. Those without jobs or who have given up looking for work are forced to more »
Have you eaten at Chili’s lately? If so, then you have supported Brinker International (NYSE: EAT). If you prefer a more upscale dining experience, or if you simply prefer Italian food, then perhaps you have dined at Maggiano’s at some point. If so, then you have also supported Brinker International.
Between these two establishments, Brinker owns and operates nearly 1,600 restaurants around the world. Brinker’s stock more »
Upscale casual dining restaurant Cheesecake Factory (NASDAQ: CAKE) has been whetting investors' appetites recently with a gain of 30.82% this last year.
The Cheesecake Factory is known to many as the workplace of Big Bang Theory's Penny where she waits tables in Pasadena until her big break in Hollywood.
Of interest is that general managers get a new BMW lease every three years. Maybe Penny should try for more »
As the economy gradually recovers from the worst financial crisis in decades, it’s reasonable to invest in cyclical sectors of the economy that do particularly well in good economic times.
One such industry is the casual restaurant industry, whose fortunes are tied closely to the health of the consumer. And, since American consumers are feeling better about their finances and spending more in recent months, wise investors should pay more »
Once again, Ashley Madison, the extramarital dating site, has delved deep into the psyche of 42,890 of its cheating members and discovered their favorite trysting eateries.
Number one trysting place was privately held Morton's Steakhouse. But coming close were casual dining chains: Fleming's Steakhouse and Outback Steakhouse, owned by Bloomin' Brands (NASDAQ: BLMN), Del Frisco's Restaurant Group (NASDAQ: DFRG) Cheesecake Factory (NASDAQ: CAKE)), Red Lobster, owned more »
Last week, Darden Restaurants (NYSE: DRI) issued fourth-quarter earnings that failed to live up to expectations. The company is struggling to remain competitive and has resorted to reduced pricing and promotional offerings to boost traffic. Lower pricing naturally cuts into profit margins, and management does not expect the challenging environment to change anytime soon.Reduced pricing and narrow profit margins make me concerned about a potential decline in the stock more »
Texas Roadhouse's (NASDAQ: TXRH) stock has grown by 46% in the last six months. This is quite a feat given the competition full service, casual dining restaurant companies are facing from their Quick Service Restaurant (QSR) peers. Texas Roadhouse has taken several initiatives that are expected to continue driving the company’s same store sales. In this article I discuss some of these initiatives in detail.
Store expansion plans more »
Casual dining, full service restaurant companies are facing tough competition from their Quick Service Restaurant peers. The opportunities to increase the top-line remain limited and companies are making extra efforts to increase shareholder returns. These steps include new product introductions to drive sales and use of technology to reduce costs and improve services. Brinker International (NYSE: EAT) is one such full service restaurant company shooting to increase its gross margin more »
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