Weekly Food Industry Report: October 11, 2013
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Every week, we take a look into some of the biggest financial news to emerge from the world of food. Here is this week’s:
Del Frisco’s Restaurant Group Inc.: Texas-based steakhouse corporation Del Frisco’s Restaurant Group Inc. experienced both increases and decreases in third quarter same-store sales, according to a press release. At its upscale steakhouse Del Frisco’s Double Eagle, the company narrowed its net loss to $400,000 as traffic and same-store sales went up. However, for its Sullivan’s Steakhouse brand, same-store sales fell more than 5 percent.
Jamba Juice: Bad weather and economic tendencies negatively impacted Jamba Juice sales in the third quarter for the first time in two years, according to a press release. Same-store sales fell 3.4 percent systemwide, including a 5.5 percent decline for company-owned stores as well as a 1.3 percent decline for franchise locations.
Potbelly Corp.: Potbelly Corporation’s share price more than doubled on its first day of trading from a $14 offering price to a $30.77 closing price, according to a press release. It outperformed first-day trading of other recent restaurants IPOs, including that of Noodles & Company. Potbelly offered 7.5 million shares at an initial price of $14 and raised about $105 million, surpassing its $75 million projection.
Ruby Tuesday Inc: In the first quarter, Ruby Tuesday Inc. reported a net loss of $22.2 million driven by same-store sale declines of 11.4 percent at company-owned restaurants and 8.4 percent at domestic franchises, according to a press release. The company’s president and chief executive James J. "JJ" Buettgen predicts same-store sales will decline in the high-single digits in the second quarter but will improve in the third quarter as well as the fourth.
Yum! Brands Inc: Negative trends in China will continue into the fourth quarter for Yum! Brands Inc., which recorded a 68 percent decline in net income, according to a press release. Same-store sales fell 11 percent in China, where the company’s KFC brand is still feeling the effects from concerns raised about poultry quality earlier in the year. In the U.S., same-store sales were steady for the third quarter. Officials said a same-store sale recovery in China by the fourth quarter is unlikely.
We’re always on the lookout for new financial news, so let us know!
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