June 20, 2005

Chain Update

Darden, Yum! Brands and Krispy Kreme are among the chain restaurants that announced significant financial or operational news in recent days.

Yum! Brands announced its same-store sales for its period six, which closed on June 11. The company’s overall same-store sales grew by 6% vs. the year-ago period. Same-store sales at KFC grew by 12%, while Taco Bell posted 7% growth. Pizza Hut’s same-store sales were flat.

Darden Restaurants reported that its sales for the fiscal year that ended on May 29 grew by 5.5% to $5.3 billion. Net earnings for the year were $290.6 million, up from $227.2 million for the previous fiscal year. For the fourth quarter, the company posted net earnings of $84 million vs. $52.7 million a year earlier. Sales were flat at $1.4 billion, though this year’s fourth quarter consisted of one less week than the previous year’s.

Krispy Kreme announced that six officers have left the company at the recommendation of the company’s special committee of independent directors. The unnamed officers, four of whom are senior vice presidents, worked in the areas of operations, finance, business development and manufacturing and distribution. Five of the officers resigned from their positions, while one retired.

Diedrich Coffee announced its financial results for the quarter that ended on March 9. The company’s total revenue fell by 0.4% to $11.6 million. Net income for the quarter was $15.6 million, or $2.99 per basic share, excluding the gain on the company’s sale of its Gloria Jean’s international operation. Net income per share reached $0.01, up from a net loss of $0.01 for the same period a year earlier.

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