Papa John’s Marketing and Promotional Strategies: What’s in the Oven?
In 2014, Papa John’s spent $63 million, or 4% of its total revenues, on advertising, whereas McDonald’s spent $808 million, or 2.9% of its total revenues.
Hospitality & Restaurants
Everything you need to know about news affecting hotels, restarants and other businesses in the hospitality sector.
A Rundown of Wyndham Worldwide’s Wyndham Hotel Group Segment
Wyndham Hotel Group provides services under a franchise model but also offers professional oversight and operations support under a management model.
Introducing Wyndham Worldwide, a Hotel Super Power
Wyndham Worldwide is considered the world’s largest hotel franchiser. It owns the world’s largest vacation ownership and exchange network.
Why Unemployment Rate Matters to Restaurants
While the latest unemployment rate indicates that the US economy is healthy, it’s important to remember that the labor force participation fell over time.
How Limited-Time Offers Can Help Shake Shack’s Top Line
Shake Shack stated that its limited-time offers, the ShackMeister Burger and Roadside Shack, have been “big drivers” for its ticket and traffic growth.
Sizing up the International Reach of Papa John’s Pizza
In 1998, Papa John’s decided to venture outside the US by opening outlets in Mexico and Puerto Rico. In 1999, it acquired the UK’s Perfect Pizza Holdings.
TripAdvisor’s Revenue Drivers for Its Largest Revenue Stream
What are the key revenue drivers of TripAdvisor’s (TRIP) click-based advertisement revenue? We can break them down into a few key metrics.
Which Segment Will Continue to Drive TripAdvisor’s Growth?
The hotels segment is TripAdvisor’s main segment, contributing about 82% of the company’s total revenues.
Why the CAP Segment Is the Next Big Market for Starbucks
Starbucks has about 5,239 restaurants in the CAP segment. It’s growing units at an average of 18.4% compared to the rest of the regions.
What to Expect from Starbucks’ Same-Store Sales Growth in 4Q15
Same-store sales growth is one of the key revenue drivers for a restaurant company like Starbucks (SBUX), McDonald’s (MCD), and Darden Restaurants (DRI).
Starbucks’ Key Segments for Its 4Q15 Earnings
Starbucks (SBUX) operates restaurants in 65 countries around the world. However, 83% of its revenue comes from the Americas and the CAP segments.
Will McDonald’s Separate Its Real Estate Portfolio?
One of the key reasons why McDonald’s (MCD) stock has remained firm is because of its real estate portfolio.
Will Chipotle Report Low Same-Store Sales Growth in 3Q15?
Chipotle (CMG) experienced tremendous same-store sales growth in 2014, with most of its quarters reporting a double-digit growth.
Why US Economic Activity Is Important to Domino’s Pizza
Although Domino’s is spread over 75 countries, most of the company’s revenue comes from domestic markets and is more sensitive to economic conditions in the US.
Comp: Average Revenue per Square Foot of Fast Casual Restaurants
Average revenue per square foot gives us insight into how efficiently a company is able to generate sales. Naturally, the higher the number, the better.
Why a Weak 2Q15 for Baskin-Robbins May Not Be a Negative Signal
In 2Q15, Baskin-Robbins’s US same-store sales growth rate fell to 3.4% compared to 4.2% a year ago. This was driven by ongoing promotions and discounts and a 75% increase in online cake ordering.
Is McDonald’s Turnaround Plan Working?
McDonald’s (MCD) turnaround plan, which went into effect on July 1, 2015, will take several months to yield results as far as the company’s performance goes.
The Key Trends that Could Shape the Courier Industry in 2015
The US has witnessed the emergence of a number of regional carriers such as OnTrac and Eastern Connection, which are providing cheaper, faster delivery options.
How Starbucks Is Leveraging Its Star Rewards Program
According to Starbucks (SBUX) management, the company’s My Starbucks Reward program helps increase customer loyalty.
Jacobs Douwe Egberts: What It Took to Seal the Deal
According to Jacobs Douwe Egberts’s website, the company holds either the number-one or number-two position in coffee markets for more than 18 countries in Europe, Latin America, and Australia.
Technology: The Driving Force behind Domino’s Pizza
Domino’s continues its investment in the technology space with its recent launch of Domino’s pizza delivery tracker available on Apple Watch.
How Commodities Play an Important Role in the Restaurant Industry
Agricultural and livestock commodities such as corn, coffee, beef, pork, chicken, and cheese play an important role in the restaurant business, as demand and supply factors impact prices.
How Unemployment and Labor Participation Rates Affect Restaurants
A tight labor market with low unemployment and participation rates puts pressure on restaurant companies to raise wages to retain their employees.
Starbucks Makes China Another Feather in Its Cap in 2015
There’s strong acceptance of the Starbucks loyalty program in China, with 40% of transactions completed using the Starbucks card.
Starbucks Relies on Comps to Drive Revenue Growth
The Americas and the CAP (China, Asia-Pacific) segments have been the biggest contributors toward Starbucks global comps growth.
Factors That Influence the Restaurant Industry
Over the past 12 months, the restaurant industry has experienced significant sales growth. In this series, we’ll look at certain indicators that investors in this sector should track.
What Are the Key Categories in the US Tea Industry?
Data from the Tea Association of the USA estimates that the wholesale value of the US tea industry grew by 4.1% to reach $10.8 billion in 2014.
Chipotle’s Revenue Per Square Foot: Two Times More than Qdoba’s
Chipotle’s average restaurant size is about 2,550 square feet. With an average restaurant volume of $2.4 million, the revenue per square foot comes to $969.
Key Indicators for Restaurant Industry Growth
Restaurant industry sales have experienced growth in the past 12 months. Sales are poised to grow to $709 billion.
How Shake Shack’s Revenue Per Square Foot Compares with Peers
The recent rally in Shake Shack’s share prices—without any new catalyst—may indicate that investors are optimistic about the company’s prospects.
Healthy Food: Antibiotic-Free Chicken Is Gaining Importance
According to a study by researchers at John Hopkins University, the arsenic in served chicken isn’t healthy. It could increase consumers’ cancer risk.
Magnetar Purchases New Stake in Restaurant Brands International
Magnetar Capital added new stake in Restaurant Brands International (QSR) in 4Q14. The position represented 0.73% of its holdings at the end of the year.
The Eroding Purchasing Power of the Minimum Wage Worker
While the absolute minimum wage has increased, when adjusted for inflation in 2015, its purchasing power has declined.
Dunkin’ Brands Diversifies Its Daypart Focus
Dunkin’ Brands is now expanding into the afternoon daypart in order to win customers in a different daypart and improve sales leverage.
Analyzing Starwood’s Asset-Light Strategy
In 2006, Starwood’s management embarked on an asset-light strategy. It decided to sell a significant portion of Starwood’s owned hotel portfolio.
Starwood’s Vacation Ownership Business Spin-Off
On February 10, 2015, Starwood Hotels and Resorts announced plans to spin off its vacation ownership business into a separate publicly traded company.
Domino’s Pizza and Its Master Franchise Model
The master franchise agreement gives the master franchisee operating rights to a supply chain in a given international region.
Why Domino’s Pizza Has So Much Debt
Domino’s debt is high because it was the product of a leveraged buyout. The latest recapitalization happened in 2012, leaving it with $1.57 billion in debt.
How Dunkin Donuts Is Embracing Technology
Dunikin’ is embracing technology with a phone app that allows you to search Dunkin’ Donuts locations, see nutritional information, and gift Dunkin’ treats.
What are Dunkin’ Brands’ Five Sources of Revenue?
Dunkin’ Brands’ (DNKN) sources of revenue include franchise revenue, sale of ice cream products, company-owned sales, rental income, and other income.
Brinker International’s Key Costs of Operations
Brinker incurs key costs of operations to run its company-owned restaurants, including cost of sales, labor and related costs, and rent and other costs.
Dunkin’ Brands Has a Nearly 100% Franchise Model
Benefits to a franchise model include low need for capital, more focus on brand in marketing and menus, and a potential to penetrate faster into the market.
Dunkin’ Brands’ International Development Plan
As of December 2013, Dunkin’ Brands had 5,736 points of distribution (or POD). In its International Development Plan, it plans to expand that to 9,500.
Should You Invest in Electronic Arts?
Along with its move toward the digital space, console upgrades are the reason Electronic Arts stock returned 66% to shareholders in 2013 and 105% in 2014.
US Market Still the Biggest for Dunkin’ Brands
Dunkin’ Donuts is Dunkin’ Brands’ most important brand, with 77% of the revenue or $568 million in 2014. Of this, $548 million was from the US market.
Baskin-Robbins’ Four Year Revenue Trend
As of 2014, there were about 2,500 Baskin-Robbins locations in the United States and about 5,000 locations in the international market.
Domino’s Wants to Entertain You at Its ‘Pizza Theater’
Domino’s plans to have all its stores remodelled according to the Pizza Theater design by the end of fiscal 2017.
Dunkin’ Donuts’ National and International Sales
Dunkin’ Donuts’ combined revenue from national as well as international units was $569 million in 2014. Of that, $548 million came from the US market alone.
Why Did Wendy’s Start Its Image Activation Program?
From 2011 to 2012, Wendy’s (WEN) started its Image Activation program. It’s a program to remodel restaurants. It plans to remodel almost 1,331 restaurants.
Analyzing Wendy’s Franchise Agreements
Wendy’s franchise agreements are only renewable after ten years. Wendy’s rental income from franchisees grew from $27 million in 2013 to $68 million in 2014.