Darden Restaurants Inc

Why higher gasoline prices can reduce people’s leftover spending at restaurants, which will negatively affect restaurant sales.

Owning properties reduces real estate costs A restaurant business that owns its own building is a bit different from a restaurant business that rents its buildings or lands. From a business standpoint, you can think of a restaurant that owns its buildings as the sum of two businesses: restaurant and real estate. Because the real […]

Wall Street analysts’ estimated EBITDA for the fourth quarter is $633 million—compared to $918 million in the same quarter last year.

Panera Bread is a limited-service fast-casual restaurant company. In July 2017, JAB acquired Panera in a $7.5 billion deal and took it private.

Food inflation can squeeze a restaurant’s operating margins, but a restaurant can adjust the menu pricing and pass the cost on to customers.

Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.

McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.

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.

Casual-dining restaurants Casual-dining restaurants have a relaxed, casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service. The menu is higher-priced than fast-food restaurants. Olive Garden, under the umbrella of Darden Restaurants (DRI), for example, has a price range of $10 to $20 for […]

During the earnings call, management stated that McDonald’s “hasn’t changed at the same rate as its customers’ eating out expectations” in its priority markets.

Darden Restaurants (DRI) reported better-than-expected earnings for the second quarter of fiscal 2020 on Thursday. However, the stock fell 6.3%.

This restaurant industry does well when the economy is expanding and poorly when the economy is contracting. In other words, it’s cyclical.

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 […]

More Americans are eating out, and they’re eating out more often. The restaurant industry’s share of the food dollar is 51%, up from 25% in 1955.

At the end of the second quarter of fiscal 2019, Darden Restaurants (DRI) operated 1,762 restaurants.

In 1Q17, Baskin-Robbins, which operates under the umbrella of Dunkin’ Brands (DNKN), had SSSG of -2.4% in the United States and -2.0% in international markets.

After fiscal 4Q16 results, Darden Restaurants’ (DRI) management has revised its same-store sales growth guidance for fiscal 2017 to the range of 1%–2% as compared to earlier estimates of 1%–3%.

The rise in EPS estimates for the next four quarters has prompted analysts to increase their price target for TXRH for the next 12 months to $45.1 from their earlier estimate of $44.8.

The Cheesecake Factory (CAKE) is competing in a highly competitive restaurant business, where innovation is absolutely necessary to keep up.

In 1992, when CAKE was listed, its average check size was at $13.6. By the end of 2015, the company’s average check size had increased to $20.8.

In the last five years, The Cheesecake Factory’s (CAKE) same-store sales growth was in the range of 1%–3%, largely driven by rises in its menu prices.

The Cheesecake Factory earns its revenue from its company-owned restaurant sales, franchisee fees and royalties, and its bakery operations.

In February 1992, The Cheesecake Factory (CAKE) went public by offering 2.3 million shares at $20 per share. It closed its opening day at $27.3 per share.

The Cheesecake Factory (CAKE) is a casual restaurant chain that was founded in 1978. The California-based company owns and operates 201 restaurants.

The origin of The Cheesecake Factory dates back to the 1940s, when Evelyn Overton found a recipe in a local newspaper that inspired her original cheesecake.

Buffalo Wild Wings is a casual dining restaurant and sports bar headquartered in Minneapolis. Founded in 1982, the company is also known as BW3.

Dunkin’ Brands (DNKN) earns its revenue from five different channels: Dunkin’ Donuts US, Dunkin’ Donuts International, Baskin-Robbins US, Baskin-Robbins International, and others.

A company’s incremental operating margin is calculated as the change in operating income divided by the change in revenue over a period.

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.

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

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.

In the US, consumer sentiment rose in June. The Consumer Discretionary Select Sector SPDR ETF (XLY) has gained about 1.22% over the past month.

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

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.

Disposable income increased by 40 basis points month-over-month in January. On a YoY (year-over-year) basis, disposable income increased 9.5%.

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.

Activist investor Starboard Value opposed Red Lobster’s sale, stating that Darden management could do more to turn the undervalued brand around.

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.

As of fiscal 2014, revenue from Specialty Restaurant Group was $1,230 million, or 19.5% of the total revenue for Darden Restaurants.

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.

As of 2014, Darden Restaurants owned 1,520 restaurants, excluding more than 700 Red Lobster locations.

Low inflation means low interest rates. This makes it affordable for restaurants to borrow and expand units.

The unemployment rate for December 2014 was 5.6%, showing a month-over-month decrease from 5.8% in November.

We’ll look at Shake Shack’s profitability in terms of its operating and net profit margins. In 2013, it had an operating profit of $5.9 million.

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.

A company can increase its marketing and promotional activities to bring in more customers and obtain operating leverage.

The company increased its menu prices by 1.5% in early December of 2013, and in 2012, it increased menu prices by 2.2%.