October 11, 2004

Chain Update: Outback, Yum! And Others

A number of major restaurant chains have announced significant financial or operational news in recent days.

• Outback Steakhouse Inc. has released its same-store sales for the five-week period that ended on Sept. 25. The Outback Steakhouse concept reported a same-store sales increase of 0.7% for company-owned units, while franchised and joint-ventured restaurants increased their same-store sales by 4.2% compared to the same period a year earlier. System-wide, Outback’s same-store sales grew by 1.2% for the period. Same-store sales for the Carrabba’s Italian Grill concept increased by 1.8% compared to the year-ago period.

• Yum! Brands has released its financial results for its fiscal third quarter, which ended on Sept. 4. The company’s total revenues increased by 10% compared to last year’s Q3, to approximately $2.18 billion, with net income of approximately $185 million, up by 13%. The company’s blended same-store sales increased by 3% in September compared to September of 2003, with Pizza Hut reporting a 6% increase, Taco Bell a 4% increase and KFC a 1% decline in same-store sales.

• Darden Restaurants has announced its same-store sales for the five weeks that ended on Oct. 3. The Olive Garden Concept reported an increase in same-store sales of between 5% and 6% compared to the same period a year earlier. This growth reflects a 3% to 4% increase in guest counts and a 2% increase in check average. Red Lobster’s same-store sales were flat for the period, with guest counts down by up to 1% and guest check averages up by between 0% and 1%. The company said that its same-store sales at both concepts were negatively impacted by approximately 1% due to September’s three hurricanes in Florida.
• Bob Evans Farms has announced that its same-store sales for the four weeks that ended on Sept. 24 declined by 4.6% compared to the same period last year. The firm attributed approximately 1% of this drop to the hurricanes in Florida, where Bob Evans units lost nearly 150 store days. The company’s recently acquired Mimi’s Café concept reported an increase in same-store sales of 5.4% during the period.

• Raymond “Rick”Barbrick has been named chief executive officer of Avado brands, owner of the Don Pablo’s Mexican Kitchen, Hops Grillhouse & Brewery and Hopps City Grille concepts. Before joining Avado, Barbrick served as COO of Bertucci’s Corp., operator of 89 casual-dining restaurants in 11 states.

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