Dine Brands Global Inc
Technology Drives Guest Satisfaction, Restaurant Stocks
A Cornell study found that a 1% increase in customer satisfaction can boost restaurant sales by $1.3 million. Technology plays a big role in this trend.
Current and Expected Restaurant Situations Float above 100
The current situation index reflects the actual health of the industry. Restaurants have advanced operations by adding sales and labor.
Analyzing the Current Situation Index versus the Expectations Index
In January 2015, the Current Situation Index stood at 102.7. It declined from 102.9 in December 2014. This is a backward-looking measure.
Bloomin’ Brands’ Remodeling Initiatives Should Grow Its Revenue
Bloomin’ Brands (BLMN) also introduced a lighter (under 600 calories) and gluten-free menu to appeal to health-conscious customers.
Why Bloomin’ Brands is Focusing on Bonefish Grill
Bonefish Grill is the third most important brand for Bloomin’ Brands (BLMN), contributing 14% of the company’s revenue.
Darden Restaurants: Five-Year Stock Performance
Darden Restaurants sold Red Lobster in 2014 and acquired RARE Hospitality International, owner of LongHorn Steakhouse and The Capital Grille.
Is the Darden Restaurants Brand Overvalued?
With a forward-looking PE ratio of 24.6x, Darden is trading well above the average, indicating that Darden is overvalued compared to its peers.
Why Restaurant Operators Are Cautious About Business Conditions
According to the NRA, the restaurant operators will become “more cautious” towards business conditions over the next six months.
Restaurant Current Situation Index Rose – Indicated Expansion
In December 2014, the Current Situation Index was 102.9. It increased from 101.4 in October. It has been above 100 since March 2014.
Expectation On Restaurant Performance Increases
In October 2014, the Current Situation Index was 103.1, up from 101 in September. The Expectations Index was 102.9, higher than 100.9 recorded in September.
Valuation metrics for the restaurant industry
There are three valuation methods you can use to value a restaurant stock. The most widely used valuation approach under market approach is the price-to-earnings ratio.
The successful franchise restaurant model
The benefits of the franchise model include the opportunity for the company to grow faster because the franchisee provides the capital for making the restaurant ready for operation, and the franchisor faces lower risk if the store underperforms.
Why restaurants are remodeling their stores
Several restaurants are focusing on changing their restaurants’ images by remodeling their existing stores. For example, Burger King’s (BKW) already re-imaged stores have boosted sales by 10% to 15%.
Know about same-store sales to understand restaurants
The two most important drivers of revenue in a restaurant business are same-store sales and unit growth. Same-store sales growth measures the growth at existing stores or locations over a period of time.
The family-dining restaurant idea
Family-dining restaurants offer full table service. They’re similar to the casual-dining format, although most family-dining restaurants don’t offer alcohol.
Must-know: Brinker International’s year-to-date performance
As of October 28, 2014, Brinker International’s (or EAT) year-to-date (or YTD) return was 12.8%—compared to returns of 8.3% on the S&P 500 Index.
Must-know: Expectations about business conditions
The Expected Business Conditions Index is part of the Expectations Index. It measures restaurant operators’ outlook towards business conditions over the next six months.
Key restaurant industry formats: The family dining business
Family dining restaurants offer full table service. They’re similar to the casual-dining format, although most family dining restaurants don’t offer alcohol.
Key restaurant industry formats: The casual dining business
Contrary to fast food restaurants, casual dining restaurants have a relaxed and casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service.
Why hiking minimum wage to $15 will mean faster technology changes
Investing in technology and capital to reduce costs as much as possible, including labor costs, has become critical.
Darden analysis: Why lower average checks are outperforming
Adding a little bit of spice to the chart After compiling a list of Darden’s core competitor brands, which include Bravo Brio Restaurant Group Inc. (BBRG), Bloomin’ Brands Inc. (BLMN), Cheesecake Factory Inc. (CAKE), Texas Roadhouse Inc. (TXRH), Ignite Restaurant Group Inc. (IRG), Brinker International Inc. (EAT), and Dine Equity Inc. (DIN), we’ve added a […]
Darden analysis: Darden brands are losing guests to competitors
Darden’s Olive Garden and Red Lobster brands are losing guests Darden Restaurant Inc.’s (DRI) same store growth and expense breakdowns suggest the company needs to follow a different strategy. With some price cuts, guest count is falling for its Olive Garden and Red Lobster brands. Without a price cut, however, the company would have likely […]
Darden analysis: Business overview shows limited differentiation
Restaurant industry breakdown The first thing investors should do before making an investment is understand the company’s industry, business, and strategy. We can broadly break the restaurant industry down into the limited-service and full-service sectors. Full-service restaurants are establishments where customers receive their meals at their table, receive table waiting services, and generally pay at […]
Why restaurants improve efficiency with tablets and technology
More efficient food delivery The benefits of using tablets and technology extend beyond just table coverage for companies like Brinker International Inc. (EAT) and DineEquity Inc. (DIN), and possibly for Cheesecake Factory Inc. (CAKE) and Buffalo Wild Wings Inc. (BWLD) in the future. Combined with location pinpoint technology like RFIDs (radio-frequency identification), tablets can help […]
Tablet ordering can increase efficiency and guest satisfaction
Customization and smaller dishes From Nikki to Starbucks and Chobani to Chipotle, customization appears to be the trend. With a tablet menu at the table, guests can take their time to decide on what ingredients they want in their dish without the necessary pressure of a waiter at their table—especially during busy hours at casual dining […]
Want to invest in iPads or tablets? Consider restaurant stocks
In this series, we’ll investigate the benefits of using tablets and which restaurants are improving their financial performance and share prices.
Syria strike would raise gas prices and reduce restaurants’ sales
Why higher gasoline prices can reduce people’s leftover spending at restaurants, which will negatively affect restaurant sales.