This week on Nation's Restaurant News the top story was Blackstone to buy Tropical Smoothie Cafe in $2B deal. Blackstone Inc., the New York City-based private-equity company, has agreed to buy restaurant chain Tropical Smoothie Cafe for a reported $2 billion, including debt, the companies announced. Blackstone said the deal for Atlanta-based fast-casual Tropical Smoothie Café LLC would be “the first transaction from Blackstone’s most recent vintage of its flagship private-equity vehicle.”
In other news, Chipotle reported first quarter results after market close Wednesday and the company once again bucked the industry’s declining traffic trends, turning in a plus-5% increase in transactions. Credit Chicken Al Pastor, barbacoa, and improved throughput to meet demand for both. The company also generated 7% comp sales growth, while system sales grew 15% to reach $2.7 billion.
Also, McDonald’s spent a lot of time during its Q1 earnings call Tuesday morning talking about a pressured consumer set, continuing a conversation that started last quarter when the company reported declining traffic among low-income consumers. This time around, it seems as though all consumers may be pulling back a bit.
“In Q1, broad-based consumer pressures persisted around the world. They’re even more discriminating with every dollar they spend. Industry traffic is flat to declining in the U.S. and several other markets,” CEO Chris Kempczinski said during the call. “We know our customers are looking for reliable, everyday value now more than ever.”
See what else was trending on NRN.com this week.