Posted on 06/30/2011 1:45:17 PM PDT by TSgt
Following bankruptcy filings by Sbarro, Perkins and Marie Callender’s 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. Denny’s 2. Wendy’s/Arby’s 3. Morton’s Restaurant Group 4. DineEquity (IHOP, Applebee’s) 5. Domino’s Pizza 6. Bravo Brio Restaurant Group 7. McCormick & Schmick’s 8. Ruth’s Hospitality Group (Ruth’s Chris Steak House, Mitchell’s Fish Market) 9. O’Charley’s 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.
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