April 25, 2005

Chain Update

McDonald’s and Outback Steakhouse are among the chain restaurants that announced significant financial or operational news in recent days.

Thanks to a 4.6% increase in global comparable sales, McDonald's announced first-quarter revenues grew by 9% when compared to the same time period in 2004. In addition, March represented the 24 th consecutive month the Oak Brook, Ill.-based chain posted positive comparable sales growth in its U.S. operation, something it had not done in 25 years, according to CEO Jim Skinner.

In other news, Louie Mele assumed the role of president and managing director of McDonald’s Restaurants of Canada Ltd. Mele takes over for the retiring Bill Johnson. Replacing Mele as executive vice president and chief operating officer is Dave Allen, who makes the transition from vice president and general manager of McDonald’s U.S. Baltimore/Washington, D.C. region.

For its third quarter, which ended March 30, 2005, Brinker International Inc. reported comparable store sales increased 3.6%, compared to 4.5% over the same time frame in the previous year.

Buffalo Wild Wings Inc. announced total revenue increased 26.4% to $50.8 million for the company’s first quarter that ended March 27, 2005. First-quarter same-store sales increased 6.1% at company-owned restaurants and 3.2% at franchised operations.

Ruth's Chris Steak House Inc., the Metairie, La.-based operator of high-end steak restaurants, has filed for an initial public offering of up to $235 million common shares with the Securities and Exchange Commission. The company expects to launch its initial IPO later this year. At the end of 2004, Ruth’s Chris owned or franchised a total of 86 restaurants worldwide, including 10 restaurants overseas. The company expects to open five to six company-owned restaurants per year over the next several years. Franchisees will open three to four new restaurants this year, and between five to six new restaurants in each of the next several years.

Outback Steakhouse Inc. reported that revenue for the three-month period ending March 31, 2005, increased by 12.8% thanks to an increase in system-wide sales growth of 12.3% for the quarter compared to the respective period in 2004.

The Cheesecake Factory Inc. reported record revenues for its first quarter, which ended March 29, 2005. Total revenues increased 22% to $268.2 million, comprised of $254.8 million of restaurant revenues and $13.4 million of bakery sales to other foodservice operators, retailers and distributors. In addition, the company reported a 3.4% increase in comparable restaurant revenues. Sales for the company's Grand Lux Café locations in Los Angeles and Chicago were up 9.5% during the first quarter from the comparable period of the prior year.

P.F. Chang's China Bistro Inc. reported earnings of $10.8 million for the company’s first quarter ending April 3, 2005. This is in contrast to a net loss of $(0.7) million in the first quarter of the prior year after giving effect to certain special charges relating to partnership accounting changes.

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