January 24, 2005

Chain Update: Applebee's, Brinker And Others

Several major chain operators announced significant financial or operational news in recent days.

· Applebee’s reported its same-store sales increased by 4.1% for the four-week period that ended on Jan. 23. Same-store sales at franchised units increased by 5.1%, while company-owned restaurants reported an increase of 1.1%. The company said that severe winter weather in the Northeast, Mid-Atlantic and Midwest regions negatively impacted its same-store sales results by approximately 2%.

· Brinker International posted net income of $41.4 million for its fiscal second quarter ending Dec. 29. Excluding restructuring charges associated with Big Bowl Kitchen, the firm’s net income was $44.2 million vs. $43.4 during the year-ago period. Revenue for the quarter was approximately $950.8 million for the period, up by approximately 7.3% from a year earlier. The company also released its same-store sales results for the four-week period that ended on Dec. 29. Compared to the year-ago period, same-store sales increased by 9.9% at Brinker’s On the Border concept, 6.8% at Maggiano’s, 6.6% at Chili’s and 6.3% at Macaroni Grill.

· Panera Bread announced an agreement with a new franchise group to open 10 bakery-cafes in San Francisco and Marin counties in California. Leading the group is Glenn Oakes, a long-time Burger King franchisee, David Cobo and Matt Cobo. The first unit is set to open by May 2006.

· Greg Buchanan has been named president of 63-unit La Madeline French-themed bakery-café chain. Buchanan previously served as the company’s chief administrative and financial officer. He replaces Wally Doolin who left the company last year to become president of Buca Inc.

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