March 7, 2005

Chain Update: Outback, McDonald’s and Others

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

Outback Steakhouse announced that Chairman and CEO Chris Sullivan stepped down as CEO, effective immediately. He is replaced by Bill Allen, who previously served as president of West Coast concepts for the company. In addition, Paul Avery, Outback president, will take on the chief operating officer role. Sullivan and former Chief Operating Officer Bob Basham will now serve as co-chairs of the company.

McDonald’s reported that its global systemwide sales for February increased by 2.7% in constant currencies compared to February 2004. Worldwide same-store sales grew by 1.6% during the period. U.S. systemwide sales grew by 5.4% during the month, while same-store sales in the United States increased by 2.6% vs. the same period a year ago.

CKE Restaurants released selected same-store sales data for the four-week period that ended Feb. 28. The company’s Carl’s Jr. concept increased its same-store sales by 2.3% vs. the same period last year, while same-store sales at Hardee’s grew by 3%. Consolidated revenue from company-operated Carl’s Jr. locations reached $42.7 million during the month. Company-operated Hardee’s restaurants posted consolidated revenue of $43.3 million.

Panera Bread Co. announced its same-store sales results for the four weeks that closed on Feb. 19. Company-owned units increased their same-store sales by 9.9% vs. the year-ago period, while franchised locations posted growth of 8.1%. Panera’s systemwide same-store sales increased by 8.6%.

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