Hospitality & Restaurants

Wyndham Hotel Group provides services under a franchise model but also offers professional oversight and operations support under a management model.

Wyndham Worldwide is considered the world’s largest hotel franchiser. It owns the world’s largest vacation ownership and exchange network.

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.

Shake Shack stated that its limited-time offers, the ShackMeister Burger and Roadside Shack, have been “big drivers” for its ticket and traffic growth.

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.

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.

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 (SBUX) operates restaurants in 65 countries around the world. However, 83% of its revenue comes from the Americas and the CAP segments.

One of the key reasons why McDonald’s (MCD) stock has remained firm is because of its real estate portfolio.

Chipotle (CMG) experienced tremendous same-store sales growth in 2014, with most of its quarters reporting a double-digit growth.

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.

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.

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.

According to Starbucks (SBUX) management, the company’s My Starbucks Reward program helps increase customer loyalty.

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.

Domino’s continues its investment in the technology space with its recent launch of Domino’s pizza delivery tracker available on Apple Watch.

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.

A tight labor market with low unemployment and participation rates puts pressure on restaurant companies to raise wages to retain their employees.

There’s strong acceptance of the Starbucks loyalty program in China, with 40% of transactions completed using the Starbucks card.

The Americas and the CAP (China, Asia-Pacific) segments have been the biggest contributors toward Starbucks global comps growth.

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.

Restaurant industry sales have experienced growth in the past 12 months. Sales are poised to grow to $709 billion.

The recent rally in Shake Shack’s share prices—without any new catalyst—may indicate that investors are optimistic about the company’s prospects.

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 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.

While the absolute minimum wage has increased, when adjusted for inflation in 2015, its purchasing power has declined.

Dunkin’ Brands is now expanding into the afternoon daypart in order to win customers in a different daypart and improve sales leverage.

In 2006, Starwood’s management embarked on an asset-light strategy. It decided to sell a significant portion of Starwood’s owned hotel portfolio.

On February 10, 2015, Starwood Hotels and Resorts announced plans to spin off its vacation ownership business into a separate publicly traded company.

Dunikin’ is embracing technology with a phone app that allows you to search Dunkin’ Donuts locations, see nutritional information, and gift Dunkin’ treats.

Dunkin’ Brands’ (DNKN) sources of revenue include franchise revenue, sale of ice cream products, company-owned sales, rental income, and other income.

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.

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.

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.

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.

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.

As of 2014, there were about 2,500 Baskin-Robbins locations in the United States and about 5,000 locations in the international market.

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.

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.

Wendy’s performance has been based on the economy, consumers’ preferences, and spending patterns in the US. International expansion will have its own complexities.