4Q preview: Weather tempers restaurant sales

This week public restaurant companies gave a preliminary glimpse into mostly modest fourth-quarter results that may be marred somewhat by bad weather, but largely appeared to meet analyst expectations.

The previews were released in conjunction with presentations before Wall Street analysts Monday and Tuesday at the 16th annual ICR XChange investor conference in Orlando, Fla.

Bad winter weather was mentioned as a factor in December by several brands, such as Cracker Barrel and Jamba Juice, but is expected to have a bigger impact on January sales, which likely fall into the next quarter’s results.

Other companies, like Canton, Mass.-based Dunkin’ Brands Group Inc., outlined aggressive growth for both the Dunkin’ Donuts and Baskin-Robbins brands.

Here are highlights from the company presentations:

AFC Enterprises Inc., franchisor and operator of the Popeyes chicken brand, reported preliminary results for its Dec. 29-ended fourth quarter and fiscal year. For the quarter, same-store sales increased 0.8 percent globally.

For the year, global same-store sales rose 3.7 percent, which fell within the company’s expected range of 3.5 percent to 4.0 percent. The company opened 194 Popeyes units, more than any single year in the past 15 years. Accounting for 68 closures, the chain netted 126 new units.

Popeyes operates and franchises 2,225 restaurants in the U.S., three territories and 28 countries internationally.

Atlanta-based AFC narrowed its earnings projection for fiscal 2013 to between $1.40 and $1.41. Previous guidance was $1.39 to $1.42.

Cracker Barrel Old Country Store Inc. said same-store restaurant sales and traffic fell in the first two months of its second quarter. Comparable-store traffic at the family-dining chain fell 0.4 percent in November and 4.7 percent in December, with a quarter-to-date decline of 2.5 percent.

Same-store restaurant sales rose 2.5 percent in November and fell 2.7 percent in December, remaining off 0.1 percent so far in the quarter.

“Our sales were negatively impacted by weather events in three of the four weekends during this shortened holiday season, and the inclement weather continued through the first two weeks of our January fiscal month,” Sandra B. Cochran, Lebanon, Tenn.-based Cracker Barrel’s president and chief executive, said in a statement. “Holiday travelers are an important part of our customer base during these two months, and we believe that the inclement weather reduced travel visits.”

Cracker Barrel owns and operates 625 stores in 42 states.

Denny’s Corp. reported preliminary results for its Dec. 25-ended fourth quarter and year-end, saying same-store sales increased 0.9 percent systemwide. Same-store sales rose 0.8 percent at franchised locations and rose 1.5 percent at company-owned units.

For the year, same-store sales at company-owned units were flat and those franchised restaurants rose 0.6 percent for a systemwide increase of 0.5 percent. 2013 was the company’s third consecutive year of positive systemwide same-store sales, which executives attributed to its focused positioning as “America’s Diner,” its tiered menu pricing and its ongoing remodel effort.

The Spartanburg, S.C.-based chain ended the quarter with 1,700 units after opening 46 restaurants in 2013, including five international locations, and closing 34 restaurants.

Dunkin’ Brands Group Inc. outlined its growth plans for both Dunkin’ Donuts and Baskin-Robbins. In 2013, franchisees and licensees opened a combined total of 790 units globally. In 2014, the company expects to net 685 to 800 new units, including 380 to 410 new Dunkin’ Donuts in the U.S.

In California, the company has signed agreements for 100 new Dunkin’ Donuts, and the company said the unit count in the Golden State alone could reach 1,000.

Baskin’ Robbins, which has been growing internationally, showed positive net domestic growth of four units, marking a turnaround for the brand in the U.S., the company said. In 2014, the company expects to add five to 10 net domestic units to the system.

Internationally, Dunkin’ expects to open 300 to 400 net new Dunkin’ Donuts and Baskin-Robbins units in 2014.

In late 2013, Dunkin’ Brands signed a master franchise agreement with Fast Gourmet Group to develop about 100 units of the donut brand in Eastern China, with the first to open in Shanghai this year.

More from Jamba, Texas Roadhouse

(Continued from page 1)

Jamba Inc. said it plans to roll out its whole-food blending and fresh juice program to more than 300 Jamba Juice units systemwide in 2014.

“Our focus on whole food blending and freshly squeezed premium juices takes us back to Jamba’s roots,” said James White, Jamba Juice’s chair, president and chief executive. “Our innovative blended beverages are an evolution in that tradition and they are now in the forefront of the growing consumer trend to healthy living.”

Emeryville, Calif.-based Jamba ended fiscal 2013 with 803 domestic units, including 535 franchised and 268 company-owned locations, and 48 franchised units in four international markets. The company recently announced an agreement for 80 units over the next decade in the Middle East.

Jamba projected same-store sales increases of between 2 percent and 4 percent for fiscal 2014.

Noodles & Company said preliminary results for the fourth quarter and year ended Dec. 31 show revenue rising 17 percent to $91.5 million and same-store sales increasing 3.9 percent systemwide, including a 4.3-percent increase at company-owned restaurants and a 1.5-percent increase for franchised units.

The company said 12 new units opened during the quarter, for a total of 318 company-owned and 62 franchise locations. The openings marked a record number as the company continues on a path to reach a potential 2,500 units in the U.S.

Texas Roadhouse Inc. told analysts that it plans to add 25 to 30 units this year to its base of 420 casual-dining locations in 48 states. The brand, which currently has four units internationally and just opened recently in Saudi Arabia, plans to add four to five units abroad this year, said chief financial officer Price Cooper.

The Louisville, Ky.-based company took a 1.3-percent menu price increase in December, which Cooper said offset modest increases in labor and commodities costs.

Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout