Weekly Food Industry Report: August 2, 2013
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:
QLess: According to a press release, QLess, the world's first mobile queuing solution provider that helps organizations replace physical waiting lines with virtual queues, has acquired Textaurant Corporation, a mobile paging provider. QLess has been shown to reduce restaurant no-shows and the number of walk-aways by 40% and 75%, respectively.
National Restaurant Association: According to the NRA's 2013 Restaurant Industry Forecast, the coming year is predicted to be the 14th consecutive year that the foodservice industry will surpass the U.S. economy in terms of job growth, but hiring and retention of these jobs pose a challenge. Eating-and-drinking place are expected to add jobs at a 2.4% rate, 0.9% higher than the total U.S. employment rate. The U.S. employment has grown by 3% in 13 years, while the restaurant industry has added jobs at a rate of 24%.
Doherty Enterprises: The company has acquired 38 Applebee's Neighborhood Grill & Bar restaurants in Georgia and Florida. This acquisition is the largest ever for Doherty Enterprises, which now own 140 restaurants in 4 states, 100 of which are Applebee's locations. 35 of these newly acquired units are in Florida. The remodeling of these 38 new units will take place over the next two years and will help Doherty Enterprises reach almost a half of a billion dollars in sales.
Ignite Restaurant Group: Ignite Restaurant Group stated that its results for the second quarter would fall short of the predictions because they used expenses to stabilize the newly acquired Macaroni Grill chain. They estimated a net loss per share of 10-12 cents, with same-store sales declining roughly 7.4% at Macaroni Grill. However, the company estimates same-store sale increases at Joe's Crab Shack and Brick House Tavern + Tap of 0.7% and 6.4%, respectively.
Bloomin' Brands: Bloomin' Brands revenue reached $1 billion during their second fiscal quarter of 2013 due to an increase in same-store sales from menu prices and consumer traffic. Overall, their net income increased from $17.4 million in 2012 to $74.9 million in 2013 by 330.3%. Their total revenue increased by 3.9%, and same-store sales increased 2.0% for domestic company-owned restaurants: 2.8% at Outback Steakhouse, 0.3% at Carrabba's Italian Grill, 0.2% at Bonefish Grill, and 3.8% at Flemings Prime Steakhouse.
BJ's Restaurants Inc: BJ's reported a 4% decline in their second quarter net income related to the closure and relocation of some smaller restaurants to bigger units. While the revenue decreased from $8.97 million to $8.6 million, their total revenue increased 10%, from $180.7 million to $198.5 million, and their same-store sales remained flat.
Burger King: Burger King reported relatively flat same-store sales during their second fiscal quarter, only increasing 0.6% systemwide. However, their net income increased from $48.2 million to $62.9 million at a 30.5% increase, which they attributed to cutting costs and increasing promotions and limited-time offers. Overall revenue actually decreased 48.5%, from $540.8 million to $278.3 million. During the quarter, the company additionally refranchised 305 restaurants.
IHOP: After more than two years of negative sales trends, IHOP is showing signs of turnaround in the second quarter. The 1,589 unit dining chain's same-store sales rose 1.9% due to increased traffic, its first positive result since the fourth quarter of 2010. Domestic same store-sales rose 1.3% and net income for the quarter has increased over 4% to $16.6 million.
Buffalo Wild Wings: Buffalo Wild Wings' gained a 41.4% net income growth for the second quarter of the fiscal 2013 year. Revenue grew 27.8% due to opening 97 more locations, where same-store sales rose 3.8% and franchised restaurants experienced increased sales growth by 4.1%.
Bravo Brio: Bravo Brio struggled in their second fiscal quarter of 2013. They suffered a decrease in total net income of 11.8%, from $5.1 million to $4.5 million, as well as same-store sales declining 3.0%, with a decrease of 1.6% at Bravo Cucina Italiana and 3.6% at Brio Tuscan Grille. However, total revenue increased 2.7% to $105.6 million from $102.8 million. The company expects same-store sales to fall between -3% and -1% for the full year.
Texas Roadhouse: Texas Roadhouse reported their second quarter fiscal results. Overall, the Kentucky-based company profited from a 9.9% increase in total revenue from $320.3 million to $352.1 million and same-store sales increased 4.5% at company restaurants and 5.3% at franchise restaurants. However, their net income decreased 1.7% from $20.31 million to $19.96 million.
Denny's: Denny's Corp reported their second quarter fiscal results for the 2013 year. Overall, their same-store sales remained flat, with only a 0.6% increase, while their net income increased 34.7% to $6.2 million from $4.6 million. However, they experienced a 6.5% decline in total revenue from $124.7 million to $116.6 million.
Papa Murphy's: According to Reuters, this pizza chain might be preparing for an initial public offering. Papa Murphy's was ranked fifth among pizza chains nationally, with U.S. systemwide sales of $733.8 million in fiscal 2012 at a 5% increase from the previous year. However, CEO Ken Calwell said in an interview that the chain saw its highest two-year sales growth in 2011 and 2012, so the increased volume posed a challenge to maintain consistency for the future.
Lazy Dog: The Lazy Dog received an investment from private-equity firm Brentwood Associates that will fuel upward growth. While terms were not actually disclosed, the chain's founder and CEO Chris Simms has said the existing management team will retain substantial equity.
Einstein Noah Restaurant Group: Einstein Noah Restaurant Group reported their financial results for the second quarter of 2013. Overall, their systemwide comparable store sales increased 0.7%, total revenues increased 1.7% to $107.8 million from $106.0 million, net income increased to $3.3 million, and operating incomes increased 22.1% from $5.6 million to $5.8 million.
Bemis Company: Bemis Company has declared a regular quarterly cash dividend of 26 cents per share. This dividend will be payable to shareholders September 3 at the close of business on August 20.
We're always on the lookout for tips about the week's financial news, so if you think there's any that we have missed, let us know!