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Friday
May172019

Jack on Value

  • Corporate believes that discounts must drive incremental traffic to avoid eroding margins. Also, there is little worry about consumers trading-down from craveable items to value-oriented items because they represent different customers.
Monday
May132019

Carrols on Discounting

  • Carrols reported that the industry’s discounting & promotional activity increasingly accelerated starting in late 2016 through 2H18 & finally began to taper-off midway through 1Q19. As a point of reference, Carrols’ discounts as a % of sales were 10% higher in 4Q18 vs. 2016. Fortunately, Carrols’ discounts have declined -300 bps between 4Q18 & 1Q19. 
  • 1Q19 COGs increased to 28.3% vs. 26.9% during 1Q18. Overall discounting was much higher relative to 1Q18 but began to taper-off mid-way through 1Q19. The impact from higher promotions & discounts alone resulted in a +130 bps y/y increase in COGs.
Thursday
May092019

Domino's on LTOs

LTOs create chaos in the supply chain & create all kinds of operational complications for training team members. Then you end up spending a lot of money advertising something that ultimately goes away and has created a short-term bump in sales but no lasting value.

Monday
May062019

YUM! on Size of Delivery Market

Pizza delivery represents $40B market while non-Pizza delivery market is $100B & growing 15%/yr.   

Thursday
May022019

Delivery driving CDR comps since 2017

Since 2017, CDR on-premise comps have declined while off-premise comps have grown at a double-digit rate with delivery representing the primary growth engine according to the most Dine Brands investor call. This is true across QSR, fast-casual family dining & upscale dining, upscale-casual as well as casual dining.