Emerging Markets: Wendy’s International Expansion Plans
Wendy’s performance has been based on the economy, consumers’ preferences, and spending patterns in the US. International expansion will have its own complexities.
Hospitality & Restaurants
Everything you need to know about news affecting hotels, restarants and other businesses in the hospitality sector.
QSCC: Wendy’s Supply Chain Management
QSCC (Quality Supply Chain Co-op, Inc.) is an independent non-profit organization that’s responsible for the Wendy’s (WEN) supply chain management.
What Are Starwood’s Revenue Sources?
The revenue from owned, leased, and consolidated joint ventures is primarily derived from hotel operations. This includes room rentals and food and beverage sales.
Domino’s Pizza Enjoys the Dual Benefits of Vertical Integration
Because Domino’s Pizza sells dough and ingredients to its own franchises, the company derives dual benefits from the supply chain segment.
Higher Disposable Income: A Reason for Restaurants to Cheer
Disposable income increased by 40 basis points month-over-month in January. On a YoY (year-over-year) basis, disposable income increased 9.5%.
Average Checks at Chili’s and Maggiano’s – Why Do They Matter?
The average check at Chili’s in 2014 was $14.31, lower than its main peers. Maggiano’s average check was $26.72, the highest among its peers.
Domino’s Pizza Relies on its Supply Chain to Get It Right
Supply chain segment In terms of revenue, the supply chain is Domino’s Pizza’s (DPZ) most important segment. In fiscal 2014, it contributed 63%, or $1.26 billion, toward the company’s total revenue. Domino’s international master franchises have the right to operate a supply chain in their respective regions. The facilities The supply chain segment consists of the […]
Which of Domino’s Pizza’s Three Business Segments Performs Best?
Of its three main business segments, Domino’s Pizza earns least revenue from its company-owned stores.
Domino’s: The Second-Largest Pizza Chain in the World
Domino’s (DPZ) is the second-largest pizza chain in the world, with a total of 11,629 restaurant units. Its total system sales in 2013 were $3.8 billion.
Domino’s Pizza: Serving 1.5 million Pies a Day
Domino’s Pizza had a 13% market share of the quick service restaurant industry in the US as of December 2014.
Why Darden Restaurants Sold Red Lobster
Activist investor Starboard Value opposed Red Lobster’s sale, stating that Darden management could do more to turn the undervalued brand around.
Why Chili’s Matters the Most to Brinker International
Chili’s is the most important restaurant under the Brinker (EAT) umbrella. Chili’s contributed 86%, or $2,443 million, to the company’s sales in 2014.
Why Marriott’s Revenue Increased in 2014
Marriott’s revenues totaled nearly $3.6 billion in the fourth quarter of 2014, compared to $3.2 billion in the fourth quarter of 2013.
Olive Garden and LongHorn Steakhouse’s Same-Store Sales Growth
LongHorn Steakhouse’s same-store sales increased to 2.7% in 2014 year-over-year from 1.2% in 2013. This is lower compared to fiscal 2012 and fiscal 2011.
Darden’s Specialty Restaurant Group: The Capital Grille
As of fiscal 2014, revenue from Specialty Restaurant Group was $1,230 million, or 19.5% of the total revenue for Darden Restaurants.
Olive Garden: Darden’s Most Important Brand
In 2014, Olive Garden contributed about 58% to Darden’s revenues as of fiscal 2014. Olive Garden gained importance after Darden sold Red Lobster in 2014.
Business Overview of Darden Restaurants
As of 2014, Darden Restaurants owned 1,520 restaurants, excluding more than 700 Red Lobster locations.
Hilton’s revenue was driven by occupancy and room pricing
Hilton Worldwide (HLT) generates revenue from its hotel operations. Hilton’s system-wide occupancy increased 2.3% YoY to 71% in 4Q14.
Why did Hilton’s revenue increase in 2014?
Hilton’s 4Q14 revenue increased 7% YoY to $2,828 million. For 2014, its revenue increased by 10.5 billion, or 7.9%—compared to 2013.
Disposable income increases, drives demand for leisure
Real disposable income increased 3.7% year-over-year. This boosts consumer buying power and means consumer spending in leisure activities may increase.
Why US Gross Domestic Product Growth Impacts Restaurants
The restaurant industry is part of the consumer discretionary sector. This sector does well when the economy is expanding.
Panera Bread’s Cost Of Operations – Food Inflation And Labor
Labor expenses increased by 1.15% to 31.11% as a percentage of related sales from last year. The increase affected the company’s bakery operating margins.
Panera Bread’s Traffic And Ticket Impact Same-Store Sales Growth
Traffic is the increase in the number of customers that visit the stores and make a transaction or purchase. Panera Bread’s traffic grew 1.3%.
How Inflation Impacts The Restaurant Industry
Low inflation means low interest rates. This makes it affordable for restaurants to borrow and expand units.
How Unemployment Rate, Labor Participation Affect Restaurants
The unemployment rate for December 2014 was 5.6%, showing a month-over-month decrease from 5.8% in November.
Starbucks China and Asia-Pacific Segment Reports Record Sales
The Starbucks China and Asia-Pacific segment grew 85% to $495 million, up from $266 million year-over-year.
Where Does Shake Shack Get Its Revenue Sources?
Domestic means all of the restaurants in Shake Shack’s domestic market—the US. Revenue from this segment was $78.5 million in 2013.
Why Should You Care About Shake Shack’s AUV?
Shake Shack (SHAK) calculates its AUV (average unit volume) by dividing the total company-operated sales by the total company-operated units.
Understanding Shake Shack’s Three Key Costs
We’ve looked at Shake Shack’s (SHAK) revenues and drivers. It’s also important to understand how the company has been managing its key costs.
Starbucks Strategically Targets Its Teavana Business
By opening Teavana Fine Teas and Tea Bars, Starbucks has shown how it’s focused on generating revenues from relevant products.
Comparing the major cruise lines’ operating and net margins
Among the three major competitors in the cruise industry, Royal Caribbean (RCL) had the highest operating margin in 2013.
An Analysis Of Starbucks’s EBITDA
Starbucks’s EBITDA is lowest in second quarters, which shows the seasonality of the business. Adverse weather conditions can also affect EBITDA.
Starbucks’s Geographic Segment Update
The following are Starbucks’s geographic segments: Americas; China and Asia Pacific; and Europe, the Middle East, and Africa.
Breaking down Royal Caribbean’s operating costs
Costs directly related to operating a cruise ship comprise ~74% of Royal Caribbean’s (RCL) total operating costs.
Royal Caribbean tailors brands for specific international markets
Apart from operating the largest contemporary global brand, Royal Caribbean offers five additional brands targeting specific markets.
A closer look at Royal Caribbean’s revenue sources and growth
Royal Caribbean (RCL) derives revenue from two sources: passenger ticket revenue and onboard and other revenue.
Overview: Royal Caribbean Cruises, the 2nd largest cruise operator
Royal Caribbean Cruises, founded in 1968 and headquartered in Miami, Florida, is the world’s second largest cruise company.
An overview of the US restaurant industry
Consumer confidence in the United States is at an all-time high in seven years, and people are spending more on food prepared outside the home.
Carnival stays competitive with strong financial position
Carnival has a stronger financial position than its peers. It maintained a very low debt-to-capital ratio of 28% in 2013 and just 27% in 2014.
A key overview of Carnival’s costs and profitability
Carnival’s operating profit increased to $1,792 million in 2014, from $1,352 million in 2013. Its operating margin increased to 11.3%, from 8.7% in 2013.
Key drivers of Carnival’s revenue growth
The growth of demand was the key driver of Carnival Corporation’s revenue growth in 2014. The number of passengers increased by 5% in 2014.
Carnival’s contemporary, premium, and luxury cruises
Cruise categories Cruise liners have been successfully providing a wide range of products and services at various price points to suit preferences of passengers from different age groups. Service levels and pricing differ by brand, category of the ship, cabins, season, duration, and itinerary. We can categorize cruise brands into these three categories: contemporary, premium, […]
Two segments make up 98% of Carnival Corporation’s revenue
Two of Carnival Corporation’s (CCL) operating segments comprise almost 98% of the company’s revenue. Carnival also reports a Cruise Support segment and a Tour segment.
What are Carnival Corporation’s revenue sources?
Carnival Corporation (CCL) derives revenue from the following three sources: passenger tickets, onboard or other activities, and tours.
Carnival boasts largest market share of cruise passengers
The number of Carnival’s cruise passengers has increased at a six-year CAGR of 4.6%. It has the largest market share of cruise passengers at ~47%.
A key overview of Carnival, the world’s largest cruise company
Carnival Corporation (CCL), the largest cruise company in the world, operates 101 cruise ships and has a global market share of ~47%.
Pivotal Government Regulations That Affect Texas Roadhouse
In addition to the factors we’ve discussed, regulations can also affect the company’s profits. Let’s look at some of the regulations that apply to TXRH.
Understanding Texas Roadhouse’s Marketing Approach
A company can increase its marketing and promotional activities to bring in more customers and obtain operating leverage.
Why Texas Roadhouse Increased Its Menu Prices
The company increased its menu prices by 1.5% in early December of 2013, and in 2012, it increased menu prices by 2.2%.
Starbucks’ 5-Year Stock Performance
Now, we’ll discuss SBUX’s stock performance over the past few years. SBUX returned $9,037 on $1,000 invested on January 1, 2009. The fourth quarter earnings announcement is approaching.