November 15, 2004

Chain Update: Brinker, Schlotzsky's And Others

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

* Brinker International has released its same-store sales results for the four weeks that ended on Nov. 3. The company’s overall same-store sales grew by 2% vs. the same period a year earlier. Same-store sales at On The Border were up by 5.5%, at Chili’s by 3.5% and at Maggiano’s by 2.1%. Same-store sales at Macaroni Grills declined by 4.6%.

* Panera Bread has reported its same-store sales for the four-week period that ended Oct. 30. Company-owned units posted a same-store sales increase of 3.4%, while franchised stores grew their same-store sales by 5.8% compared to the same period last year. The total Panera Bread system posted a 5.1% increase in same-store sales.

* AFC Enterprises has announced financial results for its fiscal third quarter, which ended on Oct. 4. The company’s total revenue increased by 3.9% from the same period a year earlier to, $98.8 million, while consolidated operating profit fell to $5 million from $5.7 million. System-wide sales were up by 5.2% to $587.4 million, while blended domestic same-store sales increased by 2.8% vs. the year-ago period. Net loss for the quarter was $1.9 million, due principally to a $5.4 million loss from continued operations caused by the sale of its Cinnabon concept.

* Bankrupt Schlotzsky’s Inc. has announced that it has filed a motion to proceed with an auction of “substantially all of its assets.”If the motion is approved, qualified bids equal to or better than the reserve price of $25 million must be submitted by Dec. 1. The auction itself will take place on Dec. 2.

* Rich Melman, founder of Lettuce Entertain You Enterprises, has said that the company could be expanding at its fastest-ever pace in the coming weeks, according to a Chicago Sun-Times article. The company, Melman noted, could expand through new restaurants and two pending acquisitions from its current 51 units to 65 to 70 locations throughout the country.

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