March 14, 2005

Chain Update: Brinker, Wendy’s and Others

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

Brinker International released its same-store sales results for the four-week period that closed on March. 2. Same-store sales increased by 6.4% at On The Border, by 3.9% at Maggiano’s and by 3.1% at Chili’s. The company’s Macaroni Grill concept’s same-store sales fell by 0.7% vs. the year-ago period.

Wendy’s International reported its same-store sales results for the four-week period that ended on March 6. In the United States, company-owned Wendy’s units posted a same-store sales decline of 2.4% vs. the year-ago period, while franchised restaurants reported a 0.7% to 0.9% decline. Tim Hortons stores in Canada posted a 6.2% to 6.6% same-store sales increase, while U.S.-based units reported an increase of between 8.1% and 8.5%.

BUCA Inc. announced that it has terminated Dan Skrypek, its vice president, controller and interim chief financial officer; and John Motschenbacher, its senior vice president and chief information officer. The company said its audit committee has “commenced an internal investigation of matters relating to the termination” of these individuals. Because of this investigation, the firm said it expects to miss its March 28 annual report filing deadline.

BJ’s Restaurants completed a private-placement of common stock valued at a total of $42.6 million. The company said the money will be dedicated to strengthening its balance sheet and funding its growth plans.

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