Skip to comments.Report: Denny's, Wendy's and Domino's among restaurants in danger of bankruptcy (Obama Depression)
Posted on 06/30/2011 1:45:17 PM PDT by TSgt
Following bankruptcy filings by Sbarro, Perkins and Marie Callenders this year, new data suggests that other popular restaurant chains are in danger of following suit.
TheStreet.com recently looked at restaurants based on their Altman Z-Score. The website says the score is based on several aspects of a company's financial health -- including working capital, total assets, total liabilities, market capitalization, sales, retained earnings and earnings before interest & taxes (EBIT) -- to forecast the probability of it going bankrupt within two years.
Since it began the scoring system in 1968, TheStreet says the formula has been 72 percent accurate in predicting corporate bankruptcies two years prior to the filing.
The list of restaurant in order of most at risk to file for bankruptcy (limited to those with a market capitalization of $100 million):
1. Dennys 2. Wendys/Arbys 3. Mortons Restaurant Group 4. DineEquity (IHOP, Applebees) 5. Dominos Pizza 6. Bravo Brio Restaurant Group 7. McCormick & Schmicks 8. Ruths Hospitality Group (Ruths Chris Steak House, Mitchells Fish Market) 9. OCharleys 10. Einstein Noah Restaurant Group
My point is: HOW? at the point of a gun? Lotsa luck.
With promises after a double-cross? Lotsa luck.
With tariffs and trade barriers? Lotsa luck, the competition will only retaliate and continue to sell to the rest of the world.
Nah. Ya can't get these administrative law bureaucratic government fiefdoms to willingly give up power, they must be completely destroyed, the tort system without risk to obstructors must go, and national Right to Work must be the law of the land, then if the President ASKS manufacturing to return, well, then, they might discuss terms, as they still have to compete with crony capitalists.
Can’t imagine spending $600 at Ruth’s Chris.
How much is a bone in rib-eye at Mortons?
When one of our grand kids was going away to boot camp last year, we bought some nice steaks to grill from the meat market in Plow Boys. They carry prime grade prime rib, about $20/lb. We bought a five bone prime rib and had them carve it up into five “full bone” steaks. $155 and worth every penny.
I ate at a Five Guys yesterday. Lousy hamburgers.
Applebees is hit and miss. There was one applebees in LA that I absolutely loved. Tried it in NY and it was worse than animal feed!
Of the three names mentioned, two of them have poisoned me. I hope they both go "belly up".
And gas is below $4 for now... Wait until it finally hits $5 and $6 just like Obama wants and see what happens to those places that only survive from expendable income. He is clueless.
Ruth’s Chris is a victim of their menu prices! lol
When times are tough people just don’t want to spend $30 for a 6 ounce steak and then pay extra for the sides.
Of the restaurants we still go to occasionaly, it’s clear that traffic is down. For one, you can get a table right away when, especially on Friday night, you’d have to wait in line.
And this city and county are very, very well off (Franklin, TN).
How did you get their secret recipe?
I liked the place ok but they closed the only two anywhere near me.
Wendy’s around here are the most expensive across the board for burgers etc.
Chuck E Cheese??
Oh Golden, how I love thee. The one in Sherman, Texas is to kill for and their business shows it. They have a huge selection and it is always good. Everything hinges on the local managers and Sherman has one of the best....so if you are ever traveling in the Sherman area around “chow” time...schedule a stop. You will not be disappointed unless you are an ignorant “snob greeie”....
That’s why Little Ceasar’s went out of business. Franchises couldn’t make a profit.
Ever hear of CiCi’s Pizza? It’s an awful product but had an all-you-can-eat $3.99 buffet. For parents it is great - little kids don’t mind the pizza and they can at least get a pasta or salad that doesn’t suck. They raised it to $4.99 but that didn’t help.
Several of their stores in middle Tennessee closed. With prices across the board rise their costs can’t be covered at $5 a head. Flour, cheese, meats, vegetables...all are much higher than two years ago.
It squeezes the already low profit margins to the point they can’t pay the lease or utilities much less employees. So they cut back on labor first making the situation worse.
It’s a vicious circle that can only be turned around when liberals in both parties quit stealing our money.
If the 2012 elections don’t turn out like 1980 it will get even worse.
Three Denny’s went down in my area about 6 months ago. Boarded up ,they look horrible and are fast becoming blights on the neighborhoods.
An Italian resto that was here when I moved here more than 30 years ago closed shop about two months ago , too. Thank you Øbama. You’re doing a swell job.
Last time I went to CiCi’s it cost a small bundle. Not the food, but the game tokens! lol.
Whatever it takes to restore the exported jobs to here - tariffs, tax breaks, prevent companies from lobbying Congress if act like an international company and hire foreign workers over Americans, put extra taxes on foreign profits whether brought back to this country or not.
Speaking of not throwing anything away, where to you think Wendy’s gets the meat for their chili? Yep, yesterdays unused and thawed hamburgers.
EBT Only Night, Free Beer with 100 dollar purchase!
Okay, well first I went looking for some cardboard to make a sign, then somehow some pizza sauce got spilled on it. Then I said “Wow! Domino’s” ... rest is history.
Ps - unfortunately Domino’s Pizza is the largest pizza chain in Australia, and second largest in New Zealand.
The problem is, there are too many people having trouble paying for the pizzas and Big Macs they ate two years ago.
The Little Caesar’s sign guy is grooving up a storm down the street from me. They are still alive.
“...I’m thinking this is why we are seeing the commercial real estate market collapse just like the housing market. Overextended and overbuilt...”
In my community we have three shopping malls: small, medium (both outdoor malls), and a large indoor mall.
The large indoor mall is right next to Interstate 5 in southwest Washington, has a Macy’s, JCPenny’s, Sears, Target, ChuckECheese, Izzy’s and Red Lobster restaurants. The restaurants are doing well, the larger stores are barely surviving, and all the other small stores, including Borders Express bookstore, are losing business. The food court is just about shutdown completely.
The small and medium sized malls are still doing well with almost all available space leased.
If the pulp and paper mills shutdown, the grain elevators stop shipping out grain, and the timber industry no longer is allowed to cut trees, then my community will die.
For right now, things are still slowly ambling along.
“Taking your lunch to work and eating dinner at home are simple things you can do to save a lot of money.”
Bought fresh made sushi at the grocery tonight instead of going to the restaurant next door to get it at twice the price.
Whoooo! At least Outback (the ORIGINAL Support Our Troops resturant, caterred steak dinners to the troop in Afghanistan) ain’t on the list and ought to survive.
At least for $2.50 you can get half of Idaho in a bag.
Yeah, just like Chuck E. Cheese!
Denny’s Chapter 11 Grand Slam breakfast.
I can’t eat certain things, and potatoes is one of those.
The best hamburger I’ve ever had was at a hole-in-the-wall place called Jack London’s Call of the Wild, in Carmel-by-the-Sea, California.
Standfords, a restaurant chain along the west coast, comes in a close second.
None of that will work except for lowering their taxes. The corporate tax rate should be ZERO because they don’t pay taxes. Taxes are an expense on the P&L and expenses determine prices.
The customers pay the tax in the cost of the product.
Make it zero and let them deduct capital items in the same year purchased and a LOT of companies will come back.
But you also have to remember that some companies build overseas mostly to sell to overseas customers just like Honda, Nissan, Mercedes, etc. build plants in the United States. To make the products they sell to Americans.
And not all business overseas can be brought back. Want to move the thousands of KFC in China back here? Kind of defeats the purpose of selling chicken to the Chinese.
My daughter lives in Franklin.
LOL. The McDonald's near where I work has two morning crews, one all Mexican, one all black.
The days the Mexicans are running the place, the facility and the employees are clean, the orders are correct and fast, and one gets the impression that the actually appreciate your business.
On the days the blacks are running it, the place is a mess. Fat sloppy women in filthy uniforms is the rule, and they will ALWAYS finish their personal (non work related) conversation before waiting on a customer. Never a "please", and you can forget about ever hearing a "thank you". Orders take forever to come out, and are often wrong.
It is actually so bad that when someone from work is thinking about going out to get biscuits for breakfast, they will ask the guy who stops there for coffee before work, "Is it black day, or Mexican day?"
If he says "Black day", we just wait until lunch.
Ah, some still around I see. I guess some franchisees can tough it out.
One Denny’s in my area became an America’s Diner, which lasted only a few months before it also closed. And the other Denny’s seems to be on the brink - the menu has been cut and business looks very slow. We had a Wendy’s and a Domino’s also close within the last year. And the place that replaced Wendy’s - a Cajun place - also closed after about six-eight months. We also have a Sears that’s seemed on the brink for years. And a Taco Time closed in the mall food court. Sounds like next time I go back, the Sbarro’s might be gone too.
So, how is the squished meat shaped like a loaf these days.
If you want real roast beef sandwich and you're in the St. Louis MO area, try a LION'S CHOICE.
And Arby's french fries! Geez-zeus. I gotta be starving and no road kill in sight to eat at one of those.
Hey there neighbor! I’ll wave at you when my wife and I drive I-40 west to near Little Rock this weekend.
Before ordering, I used the Ladie's Room, and it was the most disgusting public restroom I have ever been in. I will not post the repulsive mess here. (Yer welcome) I should have left the premises immediately - but didn't.
When the hamburger came, it had two micro sized patties of 'beef' (?) in the bun. (NINE dollars!) They were thinner than Mickey D's baby burger, and were ice cold. The onion rings were so limp, they fell onto my hand when picked up, and they were barely even warm. The coating was not crunchy - but it was slimey! The malt tasted like chemicals.
I told the manager about the restroom as soon as I left it, and told the server about the horrible food that was served to me and my guests - (that no one could eat).
The manager told me she would try to get the restroom cleaned up soon, and the server offered me a free coke.
I will never eat at a Bob's Big Boy again. Of course they don't care - the only people who enter are tourists, and they aren't counting one bit on return business!
If any restaurant should be closed - it should be them!
I stopped eating at most fast food places once filthy people from other countries started owning them. Know what I mean?
Yeah. I do.
Hmmm Domino’s here in my town puts out excellent pizza.
We got a family-owned place where I live [Continental Pizza] that serves 12” x 9” rectangular 6 topping pizza for about $13.
Makes a meal for 2 people with 4 pieces left over for a snack the next day ...
And it is Waaaaay better [and cheaper] than Dominos ...
Also, large subs [12”], the mostly costly of which is $6 ...
Travel safe. I’ll wave back!
The Dairy Queen in my town serves consistently good fast food. That’s where we head when we want fast food.
Love their hotdog and chicken baskets.
Now, I’m sad to hear about Marie, probably Denny’s also....I quit Wendy’s when they quit the “hot’n’juicy” adds a couple of decades ago (all their crap is dry as cardboard now). Sbarro’s ? That cardboard airport pizza? No big loss there.
Roast Beef....yeah.....roasted beef pieces compressed into one big rear-quarter looking mass by a couple thousand tons pressure....I dunno about you but I get a hint of hydraulic oil after taste whenever I have an ARBY’s..
Another thing that might be hurting fast-food places here is a recent law that requires fast-food chains to post the calorie content of their meals. When you see that the double bacon-cheeseburger with fries and a Coke has 1,800 or 2,000 calories, you think twice. I’m a Type II diabetic and I simply can’t eat that stuff anymore. There’s absolutely nothing at a Burger King that I could eat and not double my recommended calorie and fat intake. I don’t understand why these fast food places keep coming up with these mega-calorie monstrosities (pizza with stuffed crust, for example, and triple bacon burgers) when there’s been so much talk about healthy diets in the last 20 years.
I know what your husband means.
Our Golden Corral seems to attrack the fattest most obese people in town.
To see them loading up their trays with enough food to feed me for a week is disgusting.
People also load up their trays with food in amounts they can’t posssibly eat and it goes in the trash.
Tariffs: Ya always lose a tariff war if you're weak in the area you want to "protect".
Tax breaks: Are crony capitalism (Fascism), unless across the board tax reductions. Ya always lose with Fascism.
Prevent companies from lobbying Congress if they act like an international company and hire foreign workers over Americans: This is almost identical to allowing unions to raise campaign funds and lobby Congress and outlawing corporations from doing the same. Likely unconstitutional, and we know it drives corporations and jobs overseas faster.
Put extra taxes on foreign profits whether brought back to this country or not: And the foreign corporations simply close their American offices and never pay another dime in US taxes again, always a net loss for revenue.
Nope, MORE government interference and regulations will always fail at this point. The only hope is less government.
Are you near the Red Robin near the mall? I've heard they still offer a free meal for your birthday. Juliano's used to make the best pizzas, but we haven't been there since we moved away almost a decade ago.
Back then there was work at the aluminum mill, which was packed up and shipped to China and points east across the ocean. A multitude of jobs went bye-bye. Ditto the aluminum mills in Goldendale and The Dalles. Things got rocky at Oregon Steel Mills and there were layoffs there as well. Portland is now a haven for homeless people who travel up and down the west coast. Selling our house and moving far away was a Godsend then and remains so now.
“at the point of a gun?”
About what is happening to Boeing right now.