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
Not only did the Hooters on Beechmont close, they razed the sucker too!
I like Longhorn’s too! Hubby prefers the local non-chain restaurants. When it’s Girls Night it’s Longhorn’s or Applebee’s.
Jamoca shakes!
Walk into a Wendy’s or Taco Bell or McDonalds near where I live and the stench will make you leave. I swear they’ll serve you taco meat that was made last week. They’re not throwing anything away. I won’t eat where they are owners.
LOL! We’ll grill too.
In addition to people not going I’m sure these businesses are seeing their costs rise dramatically (you know those food and energy costs that are excluded from the official inflation numbers because, like, who needs food and energy?) - but they aren’t going to be able to raise their prices to compensate. A $10 combo meal at Wendy’s? Not happening.
Ironic, since in April literally 60,000 of the new jobs created were McJobs.
This is what Obama’s and his democrats ‘redistribution of wealth’ looks like.
Of course, it’s also what a 3rd world country looks like.
I believe that there is a point of no return.... I just don’t know exactly where that point is, but it sure seems close.
If we don’t turn this around very soon, our country is going to die.
GOP... Quit screwing around and IMPEACH the miserable bastard.
In my area Charlies Brown's bit the dust but also a Pathmark and an A&P. Walmart down to 2 cashiers. Looks like the unemployment money, credit cards are maxed and house ASM has run out.
If the next election doesn't produce a President who will bring back the exported factories then maybe the one after him will.
I don’t know where you live, but here in Oklahoma, the worst fast food places are those staffed by Mexicans (most likely illegals, as they cannot or refuse to speak understandable English) and the local “Amish folk” (they also refuse to speak understandable English!). I am referring to McDs here, and these are some of the worst I have been at ever, in terms of service, food, cleanliness, etc. We don’t patronize these anymore... (Drive through times of 8-10 minutes on early Sunday morning...)
Sadly, one of our past favorite Chinese places started going downhill when they hired Mexican cooks (no less!) and the prices went up! Service was still good, but the food changed quite a bit...
Wendy’s/Arby’s (or whatever the company name is) no longer includes Arby’s. Arby’s was recently sold.
Try the roast beef.
Arby's... R-B... Roast Beef...
Get it? ;-)
-PJ
Not surprised high-end steak and seafood places are struggling thanks to Obama.
NO! Not Ruth’s Chris!!!!!!!!!!!!!!!!
aarrrrggghhhhh!
My wife and I seldom eat out. She’s a good cook; and I grill my own steaks. Can’t see paying Ruth’s prices and I don’t eat at fast-food joints. If we do eat our, it’s local restaurants.
The Red Lobster in my area (MO) is always packed around meal time, and I don’t drive by the Olive Garden very often, but they are typically packed as well.
We love our home cooking and grilling so much, any restaurant we go to, (Maybe once or twice a year) seems like we are stepping down in how well we eat.
Tonight, it's Baby Back ribs, Hickory smoked, (W/ special recipe smokey sauce.) fresh corn and baked potatoes, All you can eat, fresh home grown Asparagus, cooked on the barbecue!
NO RESTRAUNT can beat that kind of GOOD! (And for around 10 bucks to feed 6 people!)
Only when she walks or laughs.
That may be harder than one thinks.
Once double-crossed and robbed, wise businessmen require cash in advance if they will deal at all.
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