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
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.
Waffle House?
“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.
Thanks.
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?
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Yeah. I do.
Hmmm Domino’s here in my town puts out excellent pizza.
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