April 11, 2005

Chain Update

McDonald’s, Brinker and Wendy’s are among the restaurant chains that announced significant financial or operational news in recent days.

Panera Bread announced a franchise agreement that will result in 18 new locations in California’s San Bernardino and Riverside counties by 2010. The deal, struck with R&S Bread Group, calls for the first location to open in August 2005.

McDonald’s reported that its global system-wide sales increased by 11.2% in March vs. the same period a year earlier. Global same-store sales grew by 6.8% during the month. In the United States, same-store sales also increased by 6.8%. Same-store sales in Europe grew by 6.6% in March.

Darden Restaurants announced its same-store sales results for the five-week period that closed on April 3. Same-store sales grew by between 9% and 10% at The Olive Garden, reflecting a 7% to 8% increase in guest counts and a 2% higher check average. Red Lobster’s same-store sales increased by between 3% and 4%, reflecting a 0% to 1% increase in guest counts and a 3% growth in the average check.

Wendy’s International named Brion Grube president and CEO of its Baja Fresh Mexican Grill subsidiary, effective immediately. Grube most recently served as CEO of the company’s Café Express concept. He replaces Bill Moreton, who is leaving the company to move to his hometown of Chicago.

Applebee’s International reached an agreement to buy the assets of 12 Applebee’s restaurants franchised by Ozark Apples Inc. The restaurants, which are located in Missouri, Kansas and Arkansas, are being acquired as part of the company’s franchise acquisition strategy.

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