What’s Really Driving Buffalo Wild Wings’ Revenues?
From 2011 to 2015, Buffalo Wild Wings’ (BWLD) revenues increased from $784 million to $1.8 billion—a rise of over 131%.
Hospitality & Restaurants
Everything you need to know about news affecting hotels, restarants and other businesses in the hospitality sector.
Understanding Buffalo Wild Wings’ Stadia Design
In July 2013, Buffalo Wild Wings developed a guest experience approach that uses a “captain” to help customers to access all entertainment options.
Inside Buffalo Wild Wings’ Marketing Strategies
Buffalo Wild Wings is competing in the highly competitive restaurant business, wherein innovation is a must to keep up with the changing needs of customers.
What You Should Know about Buffalo Wild Wings
Buffalo Wild Wings is a casual dining restaurant and sports bar headquartered in Minneapolis. Founded in 1982, the company is also known as BW3.
Why Did Starwood Sell Itself?
The last two years have been marked by turmoil for Starwood Hotels (HOT). Starwood’s properties include brands like the Sheraton, Westin, St. Regis, and W hotels.
Marriott–Starwood Merger Synergies: The World’s Largest Hotel Chain
The Marriott–Starwood deal holds immense significance for Marriott International because the combined entity of Marriott International and Starwood Hotels and Resorts Worldwide would create the world’s largest lodging company.
The Starwood Sale: The Story to Date
In this series, we will discuss why Starwood (HOT) decided to put itself up for sale, how a merger with Starwood would benefit either Marriott or Anbang, and who could probably win this takeover tussle.
Fast Facts about the Fidelity Series All-Sector Equity Fund
The Fidelity Series All-Sector Equity Fund was founded in October 2008 and has an expense ratio of 0.67%. Shares of this fund are offered only to certain other Fidelity funds.
Which Fast Food Restaurant Led in 4Q15 Revenue Per Square Foot?
In 4Q15, MCD, YUM, WEN, QSR, JACK, SONC, PZZA, and DPZ generated an average revenue of $189 per square foot.
What Contributed to Domino’s Pizza’s Revenue Expansion in 4Q15?
In 4Q15, Domino’s Pizza (DPZ) recorded an overall revenue growth of $98.2 million from its 4Q14 revenues of $643 million.
Chipotle is Spending Big on Its Marketing and Promotional Programs
In addition to its marketing and promotional efforts, Chipotle Mexican Grill (CMG) launched a food safety website on February 8, 2016, which outlines the company’s enhanced food safety procedures.
Unit Growth and Dunkin’ K-Cup Sales Drove 4Q15 Revenue Growth
Dunkin’ Brands (DNKN) earns its revenue from five different channels: Dunkin’ Donuts US, Dunkin’ Donuts International, Baskin-Robbins US, Baskin-Robbins International, and others.
Chipotle Same-Store Sales Growth Was -14.6%: Blame It on the Food
Chipotle Mexican Grill (CMG) recorded overall same-store sales growth of -14.6% for 4Q15. It was -16% in November and -30% in December, according to the company.
Understanding the Hotel Industry Valuation Multiple
The forward EV-to-EBITDA multiple for the hotel industry currently stands at 9. It has declined from 13.1, which was recorded at the beginning of 2015.
What You Ought to Know about Marriott International’s Asset Utilization
Marriott has one of the lowest asset bases among its industry peers, having reduced its PPE-to-total-assets ratio from 24% in 2012 to 21.2% in 2014.
Marriott International’s Expansion in the Franchise Model Is Bearing Fruit
Marriott’s operating margin increased from 5.9% in 2010 to 8.4% in 2014. Its operating income grew from $695 million in 2010 to $1,159 million in 2014.
How Could Falling Consumer Confidence Affect the Hotel Industry?
The Conference Board Consumer Confidence Index as of November 2015 was 90.4 compared to 102.6 in September 2015.
Analyzing Jack in the Box’s Marketing Strategies
Jack in the Box (JACK) manages marketing funds that include contributions from both its franchise and company-owned restaurants.
An Investor’s Introduction to the US Hotel Industry
Hotel investors can use the indicators discussed in this series to gauge the industry’s general trends. Leisure travelers make up ~60% of the total hotel room sales, and business travelers account for 40% of total sales.
Jack in the Box: Improving Efficiency through Technology
To speed up service, Jack in the Box (JACK) used a two-way intercom when it opened its first restaurant in 1951.
Understanding Qdoba Mexican Eats’ Franchisee Model
Since Jack in the Box’s acquisition of brand Qdoba Mexican Grill, now named Qdoba Mexican Eats, the brand has grown from a mere 85 restaurants to 661.
A Look at Qdoba Mexican Eats’ Business Model
In 2003, when Jack in the Box (JACK) acquired Qdoba Mexican Grill for $45 million, Qdoba was operating 85 outlets with a total revenue of $65 million.
Understanding Cost Reimbursements as a Key Part of Marriott International’s Revenues
Cost reimbursements make up a major component of Marriott’s revenues and mostly consist of salaries paid to employees working in Marriott-managed hotels.
Why Marriott Relies Heavily on Its Franchise Model for Growth
Marriott now focuses on capital-light segments like franchised properties. Its fee incomes rose from $1.2 billion to $1.7 billion between 2006–2014.
Industry-Wide Demand Growth Drives Marriott International’s RevPAR
Marriott International saw strong increases in RevPAR—from $87 to $110—between 2010 and 2014.
Just How Much Does Marriott International Stand to Benefit from the Starwood Acquisition?
Marriott’s acquisition of Starwood will likely help Marriott double its international portfolio while diversifying its global presence.
Acquisitions and Joint Ventures Drive Marriott’s International Expansions
Marriott has been able to expand its international business by both acquiring and creating brands that enable it to enter new markets and market segments.
Marriott International in the Eyes of Customers: Outside Looking In
In 2015, Marriott topped the ACSI survey with a score of 80. It also topped the survey in 2014 and 2013, with scores of 83 and 81, respectively.
Marriott International’s Business Model by Service Category: Key Investor Takeaways
At the end of 2014, Marriott had around 2,882 franchised hotel properties, with 388,670 rooms under the franchise model.
Jack in the Box: The Food Is Better at the Box
Headquartered in San Diego, California, Jack in the Box (JACK), was founded by Robert O. Peterson in 1951.
Introducing Marriott International: Your Key Company Overview
Marriott International is known for its wide range of budget and luxury hotels. Its acquisition of Starwood will make it the world’s largest hotel chain.
Investor Essentials: Understanding Hyatt’s Valuation Multiple
Hyatt’s EV/EBITDA has moved in line with the median valuation multiple of its peers. Hyatt, with rare exceptions, has always traded at a discount to the median valuation multiple of its peers.
Why Hyatt Has High Liquid Assets Compared to Its Peers
As of December 31, 2014, Hyatt’s cash, cash equivalents, and marketable securities as a percentage of total assets is one of the highest among its peers, at 10%.
Asset Utilization by Hyatt Hotels
Hyatt had the lowest return on assets (or ROA) ratio among its peers at 4.6% for fiscal 2014 due to lower profits generated from its assets.
The Operating Profit Margins for Yum! Brands in 2016
Let’s examine the management’s target for the restaurant operating margins for each of Yum! Brands’ divisions in 2016. Please note that the data excludes India.
Profitability Margins Grew for Hyatt Hotels
Operating margins for Hyatt Hotel (H) increased from 1.4% in 2010 to 6.3% in 2014. The growth in margins was largely driven by steady growth in revenue and declining expenses from the owned and leased hotels segment.
Why Hyatt Has the Highest ADR and Occupancy Rate Among Its Peers
At 76.2%, Hyatt Hotels (H) had one of the highest occupancy rates among its peers for its owned and leased hotels in 2014.
How Darden’s Incremental Margins Have Expanded
A company’s incremental operating margin is calculated as the change in operating income divided by the change in revenue over a period.
How Does Hyatt Make Money from Its Hotels?
Hyatt (H) operates its hotels and other business segments under three models: franchise, management, and ownership models.
Introduction to Hyatt’s Select Service Brands and Other Brands
Hotels that offer accommodation with limited services and amenities are called select service hotels. Hyatt (H) operates about 37,500 rooms and two brands under this segment.
An Overview of Hyatt Hotels’ Competition
Some of Hyatt’s competitors—Hilton (HLT), Marriott (MAR), Wyndham (WYN), and Starwood (HOT)—compete in all the segments: Hotels and Resorts, Residential Units, and Vacation Ownership Units.
The Investor’s Introduction to Hyatt Hotels
A global hospitality group, Hyatt (H) operates industry-leading brands such as Park Hyatt, Andaz, Hyatt, Grand Hyatt, and Hyatt Regency. As of December 31, 2014, the company operated 587 properties with more than 155,000 rooms.
Chipotle May Report First Negative Same-Store Sales Growth in 4Q15
Chipotle expects its 4Q15 same-store sales growth to range from -8% to -11%. This would be the first time in almost ten years the company expects to report negative same-store sales growth.
How Much Could the E. Coli Outbreak Affect Chipotle?
When the first cases of E. coli were linked to Chipotle, the company shut down 43 of its restaurants for a week.
What’s Driving the Revenues of Wyndham Worldwide’s Vacation Ownership Segment?
Vacation unit sales rely on disposable income available to customers. The stable US economy and growing household incomes have positive impacts on Wyndham.
How Wyndham Uses Technology to Offer Greater Value to Its Clients
Wyndham invests in technology to improve its e-commerce capabilities and marketing abilities and to help it differentiate itself from competitors.
Why Papa John’s Leads the Pack in Technology Implementation
Papa John’s was first to introduce online ordering at all of its US delivery restaurants in 2001 as well as first to introduce SMS text ordering in 2007.
Comparing Papa John’s Net Margins with Other Quick-Service Big Guns
In 2014, Papa John’s net profits as a percentage of total sales decreased by 0.2% due to increases in interest levels.
Papa John’s Franchising and Quality Centers—the Foremost Piece of Company Pie
To maintain the quality and consistency of products, Papa John’s has QC (quality control) centers that supply ingredients to its restaurants.
What Challenges Has Keurig Green Mountain Been Facing?
Keurig Green Mountain (GMCR) has been facing struggles in the coffee market (XLP), as Keurig’s patent for K-Cup pods, the single-serve coffee containers, expired in September 2012.