August 2017

Insight from 2Q17 Corporate Results


Segment Sales Performance through LTM 2Q17



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July 2017

Can Remodels Drive Dine-In?


Remodeling: Go Big or Go Home...



Source: RR's 2017 Remodeling Report

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June 2017


May 2017

Key Industry Comments during 1Q17 Investor Calls



  • Dunkin' - industry challenges include: the Amazon effect - consumers demanding higher-quality products more quickly and at lower prices; a 3-point gap between food-at-home and food-away-from-home indices; low unemployment which is driving inflation that translates into slightly lower real income; and the challenge to recruit & retain quality labor (industry turn-over rate exceeds 150%) in a low unemployment environment.
  • McDonald's - mobile order & pay will be in 14,000 restaurants by the end of the year. This will lead to a better developed customer relationship management (CRM) program with some form of loyalty tied to it.
  • Starbucks - corporate alluded to an article highlighting that more retail stores have closed in 1Q17 than closed in all of 2016 with more retail stores expected to close this year than in any year during the Great Recession starting 2009. All this is to say that retail destinations require a consumer experience that evokes human emotion and connection.
  • Wendy's - a cautious consumer environment reflects higher disposable income offset by a higher savings rate, debt repayment and higher costs (healthcare, rent & student loan debt).


  • Outback - consumers seek more differentiated experiences that deliver the best 360 degree dining occasion and are less motivated by price promotions. Also, consumers seek more convenience in their dining occasion. Industry traffic is expected to decline -1% to -2% this year. 
  • Cheesecake - inclusion of calorie counts on the menu did not generate changes to guest behavior which is consistent with the chain’s experience in California & Washington state where they have been in place for some time.
  • Chili's - corporate believes that value LTOs are not the best way to drive its business because they increase operational complexity and confuse guests.
  • Olive Garden - the consumer has been pretty steady and is looking more for everyday value and less for promotional value constructs.
  • IHOP - 50% of Americans order food to-go at least once a week and 90% order food to-go at least once a month. 

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  • Could deteriorating service explain why industry performance is not all it could be?



Category: Sonic, McDonald's, Dunkin', Wendy's, Panera, Smashburger, Hardee's, Arby's, Burger King, Carl's Jr., Jack in the Box, Papa John's, Domino's, Starbucks & Taco Bell

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