November 1, 2004

Chain Update: Outback, AFC And Others

A number of major chain restaurants have announced significant financial or operational news in recent days.

• AFC Enterprises has announced that it has signed a definitive agreement to sell its Church’s Chicken concept. The 1,236-unit chain is being sold to Crescent Capital Investments for $390 million. Crescent is the Atlanta-based private-equity firm that owns Caribou Coffee.

• Wendy’s International has reported its same-store sales for the month of October. Domestic company-owned Wendy’s units reported a same-store sales decline of 5.8%, while franchised stores in the United States saw their same-store sales decline by between 5.1% and 5.8% compared to the year-ago period. Tim Hortons units in Canada grew their same-store sales by 6.1% to 6.4%, while U.S. Tim Hortons restaurants reported an increase in same-store sales of 9% vs. the same period a year earlier.

• Outback Steakhouse has released its same-store sales results for the four-week period that ended on Oct. 23. Company-owned Outback units reported a same-store sales decline of 0.9% compared to the same period a year earlier, while franchised and joint-ventured units posted an increase of 1.3%. System-wide, the Outback concept posted a decline in same-store sales of 0.6% vs. the year-ago period. The company’s Carrabba’s Italian Grill concept reported an increase in same-store sales of 3.3% for the period.

• CRBL Group has reported its same-store sales for the five-week period that ended Oct. 29. The Cracker Barrel Old Country Store concept reported an increase in same-store sales of 2.3% compared to the year-ago period, with check averages up by 3.6%. The group's Logan’s Roadhouse units reported a 5.2% increase in same-store sales compared to the year period, including an approximately 5.7% higher average check.

• The Smith & Wollensky Restaurant Group has announced its sales figures for its fiscal month of October. The company’s system-wide sales increased by 25.2% over the same time last year, reaching $10.8 million. The chain’s same-store sales grew by 8.3% vs. the year-ago period.

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