With disappointing same-store sales performance across all four segments, it isn’t surprising that McDonald’s reported revenues of $6,987 million—a 4.5% decline.
Part of McDonald’s (MCD) initiative is to make improvements in the “Made for You” platform. It was introduced almost a decade ago.
As of the third quarter ending September 30, 2014, McDonald’s had more than 35,860 restaurants across the globe. In the third quarter alone, it added 181 new restaurant units.
During the earnings call, management stated that McDonald’s “hasn’t changed at the same rate as its customers’ eating out expectations” in its priority markets.
China is part of the APMEA region. Same-store sales were down 22.7%. Approximately 5,000 restaurants were affected when McDonald’s suspended its meat supplier.
McDonald’s (MCD) revenues declined 4.5% YoY. Revenues in the restaurant industry are mainly driven by same-store sales and unit growth. The global same-stores sales were down to -3.3% YoY.
In the third quarter earnings, McDonald’s reported a diluted EPS of $1.09. It declined by 28%—compared to an EPS of $1.52 in the same quarter last year.
According to the National Restaurant Association, restaurant and foodservice sales will be $683.4 billion in 2014, up 3.6% year-over-year.
In August, the Restaurant Performance Index stood at 101.9, an increase of 1% from July, which was its first gain in three months.
Fiesta’s partnership with food distributor PFG will allow the growing brands to share a national distribution system and freight consolidation.
Based on the year-to-date results, Fiesta Restaurant Group Inc. expects to be at the high end of the 3% to 5% range for comparable sales growth at Pollo Tropical.
In early 2014, Fiesta began cable TV advertising in Tampa for the first time, which led to an 11% increase in average weekly sales.
Fiesta opened new restaurants on high profile real estate, aiming to generate assets under management of $2.2 million in two years.
Fiesta Restaurant Group is allocating its capital to the highest return investments, new Pollo Tropical company-owned restaurants and Taco Cabana remodels.
At the end of the second quarter, Fiesta Restaurant Group’s net income increased 87.4% to $9.3 million, compared to net income of $5 million in 2Q13.
Taco Cabana restaurant sales increased 3.3% to $78.3 million compared to the corresponding period last year due to a 2.8% increase in comparable restaurant sales.
For the 19th consecutive quarter, Pollo Tropical has delivered positive comparable restaurant sales growth.
For 2Q14, Fiesta’s total revenues recorded an increase of 9.4% to $154.2 million from $140.9 million in the corresponding quarter last year.
As of June 2014, Fiesta Restaurant Group owned 112 Pollo Tropical restaurants and 166 Taco Cabana restaurants.
Fiesta Restaurant Group Inc. (FRGI) owns, operates, and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana.