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📈 MARKET HIT! CE Data Tracks DRI Earnings Miss CE’s US Transaction data was predictive of Darden Restaurants (DRI) sales, as the restaurant group that includes Olive Garden, LongHorn Steakhouse, and Yard House Restaurants among others reported total sales growth of +6.8%, close to CE Implied Reported Growth of +6.5% against consensus estimates of +8.7%.  As a result of the miss, the stock was down -5% post-earnings. https://hubs.li/Q02qM8SR0 #restaurants #consumerinsights #investors #DRI #markethit

In December, an IR lead at a publicly-traded QSR company wrote that in order to consider using Consumer Edge's US transaction data set, his team would need to see "how their stock may react to such data in relation to peers." Having access to accurate, daily data allows them to see what investors are seeing, in real-time. It often puts them in the a much better position (sometimes weeks or months in advance) to anticipate investor questions and dig deeply into the long-term fundamental drivers behind things like: -share shift -diner attribution -behavior shifts for cohorts (high-frequency diners, high-ticket diners, millennial vs. boomer spend, high-income vs. lower-income spend)

There is a lot of buzz around franchising. And it certainly works for many chains, but it’s not the only way to grow and attain good margins. Some large restaurant chains with a moderate part of their systems franchised have also been able to engineer better-than-average profitability. Some examples of publicly traded restaurants doing this in the U.S. are Dave & Buster’s, Chipotle, and Darden. The three are in different categories: eatertainment, fast-casual, and casual dining. As Einstein said, a problem can’t be solved with the same line of thinking that created it. And while its hard for restaurant chains to maintain margins, many do very well. For those looking to improve their company’s bottom line, rather than just keep track of it, the most powerful lever at their disposal is to act as their own activist. We recommend a holistic approach be applied to looking at the organization, working across functional areas and down individual line items of the restaurant P&L while reviewing factors impacting performance both inside and outside the business — also, some outside help never hurt. #restaurants #finance #EBITDA

Where others failed, Olive Garden’s parent is betting big on Mexican restaurants, although Darden’s planned $605 million acquisition of Chuy’s chain poses risks as well as rewards. The proposed acquisition will add more than 100 full-service Tex-Mex restaurants to its portfolio. Right now, there is no truly national U.S. Mexican casual dining leader, according to retail analysts. Mexican cuisine is one of — if not the most — popular and fast-growing types of ethnic dining in the United States. Chuy's will give Darden a piece of the action. Several retail analysts agreed that the Mexican restaurant sector still isn't saturated, but rather is highly fragmented. Darden, with its existing national chains, also said it has the supply chain in place and experience to service and grow Chuy's footprint. Darden’s expansion of Chuy restaurants may be a future opportunity to look out for, for buyers and sellers of retail real estate assets. Keeping abreast of trends in national retailer tenants and their acquisition/expansion plans helps investors maximize their returns. For more information on triple net lease assets, check out NNN Trends, a go-to resource for constantly updated national cap rates, comparable sales, and consumer traffic: https://bit.ly/4eIcExV #CRE #Retail #NetLease #CapRates

Friday may not come soon enough if ever. TGI Fridays TGI Fridays closes more than a quarter of its locations as bankruptcy nears. Like many restaurants, changing consumer preferences and lower-cost competition from fast food has left TGI Fridays on the brink. This isn't casual. TGI Fridays has been dealing with declining revenue for years, and its whistling-glazed flat iron steak and churro twists have been unable to lure enough customers back. While dining levels are back up in general to pre-pandemic levels, sit-down dining has continued to languish. And while fast food has certainly gained with consumers, the industry as a whole is facing an inflection point. We're cutting back. According to estimates, one-third of U.S. consumers have cut back on fast food, sit-downs, and delivery alike since the start of the year. Nearly half have been cooking dinner more at home over the same period, while 38% do the same about lunch. That's not what TGI Friday's wants to hear. It's going to require more than 30 pieces of flair. For TGI Friday's, the chain is hoping to seek a buyer and restructure its debt, but that may be a tall order https://lnkd.in/g_2bCGjT #tgifridays #restaurant #fastfood #consumers #food #inflation #economy

Darden Restaurants, owner of Olive Garden, has agreed to acquire Chuy's Restaurants Holdings, a full-service restaurant operator, in an all-cash deal valued at $605 million. This acquisition will add Chuy's 101 restaurants across 15 U.S. states to Darden's portfolio, which includes brands like LongHorn Steakhouse and Yard House Restaurants. The deal, priced at $37.50 per share, represents a 48.4% premium to Chuy's closing stock price. The transaction, expected to close in Darden's fiscal second quarter, is projected to be neutral to Darden's earnings per share for fiscal 2025. Read More Here: https://lnkd.in/gkjT-ab7 The Wall Street Journal Connor Hart Branded Hospitality Ventures Hospitality Hangout Podcast #hospitality #sales #marketing #finance Eric Belsky Cindy Busi Wayne Covey Dan Kiernan Jaime Bunker Sarah Kingsley Rollman

Chipotle has approximately 3,381 locations and a market cap of $79.86 billion. According to Wall Street, each Chipotle location is valued at an impressive $23.6 million! Here’s a closer look at the numbers: 🕵♂️ 💰 Revenue: $9.9 billion annually from restaurant sales. 📈 Average Sales per Restaurant: $2.9 million annually. 💸 NET Profit per Restaurant: $644,188 annually. 💵 Adjusted EBITDA per Restaurant: $555,161 annually. Based on these figures, investors are valuing Chipotle restaurants on average 43X adjusted EBITDA multiplier 😮or 258% higher than the standard multiplier. What’s truly remarkable is that Chipotle achieves these unprecedented valuation results with: 💲 No contractual revenue 📱 No specialized technology 🌯 No secret recipes 👌 Zero guaranteed repeat business 🏢 Rented real estate locations 🥙 Expensive customer acquisition strategy What are your thoughts on valuation? #Chipotle #BusinessSuccess #InvestorInsights #MarketValuation #RestaurantIndustry #BusinessGrowth #Finance #WallStreet

Chain restaurant bankruptcies are reportedly at their highest level since the pandemic. Among the most recent examples is the casual dining franchise TGI Friday’s, one of more than a dozen high-profile eateries to seek bankruptcy protection between January and October of this year, Bloomberg News reported Thursday (Dec. 5), citing BankruptcyData. #grow🌱 #agribusiness #supplychain #trade #usa🇺🇸 #markets #commodities #restaurants🍽️ #bankruptcy #interestrates✂️ #consumers #demand #downturn

Wendy’s is closing 140 lower-volume restaurants in weaker markets through the end of the year as part of a strategy the company says will strengthen the system’s overall health and prepare it for a more rapid pace of growth in the coming years. #grow🌱 #agribusiness #supplychain #trade #usa🇺🇸 #markets #wendys🍔 #commodities #closures #demand #stagflation #consumers #downturn