The market could be expecting Chipotle to have lower same-store sales growth in 2Q15. Chipotle’s recent two readings for food service growth on a three-month rolling average basis have trended downward.
In contrast to the Empire State index, the Philadelphia index’s headlining indicator, diffusion of current activity, stood at 15.2 in June. This represents a significant increase from May.
A typical Shake Shack restaurant is an average size of between 3,000 and 3,500 square feet. Currently, the average unit volume for Shake Shack’s company-owned stores is $4.6 million.
Management says that most of Shake Shack’s growth will come from developing new units. So, it’s important for an investor to understand where the unit growth is headed.
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.
Jack in the Box management is focusing on developing current restaurants and same-store sales rather than unit growth. The results show in impressive same-store sales growth.
One new initiative that McDonald’s announced in March is that it will discontinue using chicken raised on antibiotics that could have an effect on humans.
Shake Shack stated that it will double its company-operated store count over the next three years and that that number will triple in the coming five years.
Same-store sales indicate the sales at the existing location over a period of time—usually one year. Same-store sales are driven by traffic and ticket.
