Financial News

Sbarro posts wider 3Q loss on impairment
MELVILLE N.Y. (Nov. 19, 2009) — Sbarro Inc., operator or franchisor of 1,056 Italian quick-service restaurants worldwide, detailed this week a much wider net loss of $24.5 million for the third quarter ended Sept. 27, compared with a net loss of $1.2 million in the same quarter a year ago. more...

Papa Murphy’s Take 'N' Bake Pizza for sale
VANCOUVER Wash. (Nov. 18, 2009) — Papa Murphy’s International confirmed Wednesday that its private-equity parent company, Charlesbank Capital Partners LLC, has hired North Point Advisors to explore a sale of the take-and-bake pizza chain. more...

OSI Restaurant Partners cuts 3Q loss
TAMPA Fla. (Nov. 17, 2009) — OSI Restaurant Partners LLC reduced its third-quarter loss by nearly a half from the same quarter last year and said that lower-priced deals at its Outback Steakhouse chain were attracting more customers. more...

Pizza Hut franchisee calls for new strategy
OVERLAND PARK Kan. (Nov. 16, 2009) — Pizza Hut’s largest franchisee, NPC International Inc., said its third-quarter double-digit decline in same-store sales came about as the franchisor, Yum! Brands Inc., “struggled to find the proper message to connect with the consumer in this new recessionary environment.” It has tasked the franchisor with finding a new brand strategy. more...

El Pollo Loco posts 10% comp decline in 3Q
COSTA MESA Calif. (Nov. 16, 2009) —

High unemployment rates, particularly among Hispanics and within El Pollo Loco’s core markets throughout California, were blamed for the chain’s 10.1-percent decline in same-store sales for the third quarter.

Study: Demand for deals may slow sales recovery
NEW YORK (Nov. 16, 2009) — Usually, the restaurant industry is first in when the economy slumps and first out when it improves, but a new study suggests that may not be the case this time around. more...

Earnings roundup shows cost cutting has positive P&L effect
(Nov. 16, 2009) — Third-quarter earnings results continued to reflect both bottom-line improvements driven by cost cutting and stalled sales as consumers continue to clutch their dollars. more...

Hedge fund to fight Landry’s buyout
NEW YORK (Nov. 14, 2009) —

Activist hedge-fund manager William Ackman and his Pershing Square Capital Management fund has acquired a large stake in Landry’s Restaurants Inc. and is set to oppose the restaurant company’s $1.2 billion buyout deal.

Bruegger’s buys Timothy’s World Coffee
BURLINGTON Vt. (Nov. 13, 2009) — Bruegger’s Enterprises Inc., operator or franchisor of the 292-unit Bruegger’s Bakery Café chain, said Friday it has acquired the restaurant holdings of Toronto-based Timothy’s Coffees of the World Inc. more...

Jobless rate, discounting hurt CKE’s Oct. sales
CARPINTERIA Calif. (Nov. 11, 2009) —

Discounting by competitors and high unemployment in California continued to take a toll on same-store sales in October at CKE Restaurants Inc.’s Carl’s Jr. and Hardee’s chains, officials said Wednesday in announcing preliminary results for the third quarter.

Bob Evans' 2Q profit rises
COLUMBUS Ohio (Nov. 11, 2009) — Bob Evans Farms Inc. reported Tuesday a 36.5-percent jump in profit on lower interest expense and an increase in sales in its food products division, which helped offset slow sales at its two restaurant chains. more...

McDonald's U.S. same-store sales slip in Oct.
OAK BROOK Ill. (Nov. 9, 2009) —

McDonald’s domestic same-store sales for October, while down a slight 0.1 percent compared with a year earlier, still fared better than many analysts predicted after the company tempered expectations late last month in an investor conference call.

Cracker Barrel amends credit facility
LEBANON Tenn. (Nov. 8, 2009) — Cracker Barrel Old Country Stores Inc. said last week it has amended its credit facilities to extend the availability and maturity dates of its revolving credit facility and its term loan. more...

Commodity costs may pressure chains in ’10
(Nov. 09, 2009) — After a year of profit-friendly reductions in commodity pricing for nearly everything but chicken wings, the cost of which has risen on high demand, many restaurateurs are bracing for a tougher purchasing environment in 2010, where little wiggle room will be available for even slight commodity inflation. more...

Despite 1st-Q sales drop, BK sees potential in cheeseburger promo
MIAMI (Nov. 09, 2009) — After upping the ante in the value wars, Burger King already is seeing positive results from its $1 double cheeseburger promotion introduced in mid-October. more...

Landry’s swings to 3Q profit
HOUSTON (Nov. 6, 2009) — Landry’s Restaurants Inc., which is in the midst of a going-private deal with chief executive Tilman Fertitta, reported Friday that the company swung to a profit in its third quarter on cost controls and comparisons to a year-ago when it booked large impairment charges. more...

Restaurant earnings marked by slow sales, cost cuts
(Nov. 5, 2009) —

Third-quarter earnings results continued to showcase both bottom-line improvements driven by cost cutting, as well as stalled sales driven by consumers’ reluctance to start spending.

Five Guys Burgers gets more financing
LORTON Va. (Nov. 5, 2009) —

Five Guys Burgers and Fries recently received a new shot of growth capital after doubling the size of its credit facility with GE Capital, Franchise Finance.

Rubio’s 3Q profit falls 38%
CARLSBAD Calif. (Nov. 5, 2009) — Third-quarter profit fell 38 percent for the parent of the fast-casual Rubio’s Fresh Mexican Grill chain, as labor, occupancy and advertising costs rose, along with charges for store closures. more...

Papa John’s ups 2009 earnings outlook
LOUISVILLE Ky. (Nov. 4, 2009) — Papa John’s International Inc. upped its expectations for annual earnings by two cents per share as the company said it has seen positive transaction momentum, market share gains and improved restaurant profitability. more...