July 11, 2005

Chain Update

Wendy’s, Applebee’s and Denny’s are among the chain restaurants that announced significant financial or operational news in recent days.

Denny’s reported that its same-store sales for the five-week period that closed on June 29 increased by 3.2% vs. the year-ago period. The average guest check increased by 4.9%, while guest counts fell by 1.7%.

Applebee’s announced a 0.3% decline in its same-store sales for the five weeks that closed June 26. Same-store sales fell by 0.6% at franchised units and 3% at company-owned restaurants. For the full second quarter, system-wide same-store sales increased by 1.6%. Franchised stores reported a 2.5% increase, while company-owned locations posted a same-store sales decline of 1.2%. The chain also forecasted second-quarter earnings per share to be between $0.33 and $0.34, below the average analyst estimate of $0.37.

Wendy’s International released its same-store sales results for its second quarter, which ended on July 3. In the United States, company-owned restaurants reported a 4.6% decline in same-store sales, while franchised units posted a decline of 2.9% vs. the same period a year earlier. The firm estimates that the discovery of a finger in the company’s chili, later alleged by the police to be a case of consumer fraud, impacted same-store sales by between 2% and 2.5%. Same-store sales at Tim Hortons outlets in Canada increased by 5.6%, while U.S.-based Tim Hortons reported 9.1% same-store sales growth.

P.F. Chang’s reported that its second-quarter revenue hit $198.1 million, a 17% increase vs. the year-ago period. Sales at the company’s P.F. Chang’s China Bistro concept were $166.5 million, while Pei Wei Asian Diner units posted consolidated revenue of $31.6 million. For the period, same-store sales increased by 1.9% at the Bistro and 6.3% at Pei Wei vs. the second quarter of 2004.

Visit the FlashNews Archives