Second quarter difficult for most restaurant chains, many faced traffic declines
SEAFOODNEWS.COM [Nation's Restaurant News] by Lisa Jennings Aug 28, 2014
The second quarter brought mixed results for public restaurant chains across the country with only a few high-flying brands standing out from the crowd of lackluster reports.
Several chains noted their disappointment, saying a hoped-for bounce back in the second quarter after a tough winter never came to fruition.
The clear winner during the second quarter was Chipotle Mexican Grill, which reported a jaw-dropping 17.3-percent increase in same-store sales, the highest since the company’s first quarter as a public company in 2006. Traffic increased 12.3 percent for the Denver-based fast-casual chain, despite the first systemwide price hike in three years.
Meanwhile, Chipotle’s former parent McDonald’s Corp. painted a much more dismal picture of its second quarter, followed by a bleak projection for the rest of the year.
McDonald’s’ net income for the quarter was down 0.7 percent to $1.39 billion, or $1.40 per share, with systemwide same-store sales flat. In the U. S., McDonald’s comparable sales were down 1.5 percent and the Oak Brook, Ill. -based chain said it will likely be 2015 before turnaround initiatives are in place.
Fast-casual darling Panera Bread Co. downgraded its year-end projections...Full Story »