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
Might I suggest a side-order of Lipitor?
when young scantily clad nubile women cannot entice men to eat a hamburger you know you are in trouble
That sandwich is consistently good at both Perkins around here. I even call ahead and pick up a takeout of it occasionally.
That’s unfortunate, I have good memories of Bill Knapps from my days as a college student.
As for franchise chains that went belly up, I can recall “Red Barn” and “Burger Chef” which were pretty much direct McDonalds competitors but much smaller.
And you’re absolutely correct on Church’s.
Gotta get you gangsta on to stop in there, LOL.
I lived in Indiana and they had a restaurant chain called “Sirloin Stockade”. Very similar to Golden Corral, which we also had, with the same “clientele”. The average weight of the customers was probably 280 lbs. Great food, extremely well run and CLEAN. And the fresh buttered rolls were to die for. They were always busy, especially friday and saturday nights. I always went on wednesday, which was sausage and peppers night.
LMAO, how true. I haven't been to an "Old Country Buffet" in years, but that was a perfect description of their clientele.
REAL RB used to be great. Unfortunately, that key ingredient has been missing for years.
“The key to the asylum should be “I think I will open a restaurant.””
Great comment!
Obviously you come from the midwest, as I do. Red Barn was yummy. And I loved the Burger Chef “works bar”. Hardees (which bought out BC) had a special revival of the “Super Shef” burger. I think I ate there for 2 months straight. I really miss Frisch’s Big Boy and Skyline Chili. It is funny about Church’s chicken. I was in a not so nice area of Dayton, when I saw a Church’s on fire. Sure enough, they re- opened in a couple of weeks. I’m trying to remember, but wasn’t Church’s accused of “racism” because they were ridiculously accused of putting chemicals in their food to make black men impotent? Probably a rumor started by the owners of Popeye’s chicken.
Yes Arby’s has gone downhill. Their meat is nasty now, congealed, pressed “beef”. Tastes weird. Rax roast beef had switched to this type of beef-loaf and they’re long gone. Roy Roger’s used to be great for roast beef, but I haven’t seen one in years.
I'm not sure how faithful it is to the restaurant recipe.
I’ve had those products, but it’s just not the same by a long shot. Skyline is only good when fresh, covered with a half-pound of shredded cheddar. I tell my wife about how good Skyline is, but she is disgusted by the idea. She’s a lifelong Seattle resident, and we live on the west coast, so she’ll never get the chance to try it. I can’t be too judgemental. I never liked “scrapple” when I lived in Baltimore.
I dont do it all the time. If I did, my butt would be as large as a double wide.
It is a treat I allow myself from time to time.
That is the one and only time we’ve been to Ruth Chris. We learned our lesson. Lol
For that price we could’ve stayed at the Marriott there, which is gorgeous.
Glad hubby got a kick out of it. ;)
“Although the Applebee’s here is so crappy I would pay to shut it down..”
LOL! Same here. It’s impossible to watch a decent college game at Appleby’s on Saturday afternoon. We get Division III games like Rhode Island College of Hayrakers vs Plumbers U.
Have you tried the Market Fresh group of sandwiches at Arby’s? That is all I like at Arby’s and the Roast Beef and Swiss w/o mayo is great!
The soft Obama propagandist appears.
Obamacare, Boeing, Stimulus going to cronies... it all means nothing.
Sorry pedal it somewhere else.
‘Gone Galt’ here...not one extra dime being spent on ANYTHING outside of food and fuel UNTIL this country shows some sign of getting back on the right track.
Now there’s Culver’s, Johnny Rocket’s, and Sonic...all better and less costly than Wendy’s...they are being squeezed.
It's interesting to read this thread and see how regions are so different from each other. The Wendy's around the corner from me seems to be doing fine (a steady stream of customers), the food is good quality (much better than the Wendy's of 15 years ago), good menu variety (more than just burgers and chicken sandwiches) and the servers are very friendly.
On the other hand, our Johnny Rocket's went under about a year ago, and Sonic has closed several of their local sites in the last few months.
As someone said upthread, the franchisee must really make the difference.
What exactly is the, um, “danger” of bankruptcy? They file Chapter 11, close a few stores, lay off some deadwood, terminate a few contracts, and continue operations with no debt. Not getting the “danger.” It’s what you do when you get too bloated.
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