(Especially with a few roast beef 'n cheddar sammiches....)
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
I can see it with Denny’s, the food is horrible and the service is worse, been that way forever, no one will be able to adequately explain why they survived past the first restaurant. Domino’s quality improvement was long overdue, they have too much competition that’s too good. Surprised about Wendy’s, they’re actually pretty good in their class.
I actually can’t believe how high the fast food prices already are! I think I paid close to $10 for a burger and potato at Backyard Burger just recently.
They will be. One of the two here in Tucson closed just a couple of weeks ago. Really not surprised, it’s shockingly expensive, and so-so food.
Me and my brother were in a Deluxe Suites for a while in Dallas and there was a local Jack N da Box. When the main guy was there it was always perfect and fine, when he was off the place was a craphole.
Seriously. They had this one Marine-type guy (he may really be one too). If I saw him there I knew I’d get a great burger and good service. If he wasn’t there, I was lucky to get anything remotely like what I ordered.
Try the Brooklyn style. It's not great, but it's edible and they can get it to my house in less than half an hour after I've ordered it online.
I think you have hit on the key that probably extends to many other stores and chains encompassing more than just restaurants (strip malls, office buildings, shops, etc.). I'm thinking this is why we are seeing the commercial real estate market collapse just like the housing market. Overextended and overbuilt. IMO many came through the booming late 80's and 90's thinking that the economy can grow and expand infinitely. I think many are having to learn a hard lesson to the contrary.
Same in the Austin area. Almost all the KFC restaurants have closed and one Hooters - that was always crowded - closed shop. Several other smaller restaurants have gone under. The Joe's Crab Shack had great food, but it closed too.
Obummer's fault.
When people are broke they won't be able to pay in advance.
Bush didn't do it. Obama didn't do it. The next President or the one after that has to bring back the exported factories. They were our economy seed corn.
These include..rent/mortgage, utilities, labor,
That explains the harsh reality of the economics of the restaurant business. Every palce has a weekly nut to crack..which is fairly constant. Once you cover your nut...it's incredibly profitable, as most of extra comes right down to the bottom line as profit.
Conversely, if you don't cover your weekly nut...it sucks up $$ like a sponge..and you lose your shirt real fast..
First ring Philly burb. The McD's I normally frequent are inside Philly limits. Spanish speaking crews here win hands down for both efficiency and curtesy.
We love Red Lobster, but the two closest to us are over 30 miles away.
Arbys is awesome! If they go under I’ll be mad. Don’t get to visit them often here in MA but I do when possible.
I think part of the problem where I live is a healthy competition from local restauranteurs. If I want to go “fancy” I have about 5 or 6 places that I would pick over Ruth’s Chris, Morton’s, or McCormick & Schmick’s. Casual? same thing.
Locally owned restaurants around me are separating themselves with buying local, providing a good selection of small plates, interesting dishes, etc. Ten years ago, I don’t think I’d be saying the same thing.
I love Golden Corral but my husband hates it, he calls it the Hog Trough.
It's just his turn in the barrel. We used to read 'Bush's fault'. But the problem is 15,000,000 unemployed and who is President has made no difference if their jobs are in China.
I know what you mean...went to Dillards in Springfield Mall and my son and I were the only ones in the entire store. We had to wander around the store to get to the men’s shoes and didn’t see another person that wasn’t an employee. They were even having a very good sale in the shoe department.
I don’t go to the mall that often but it has been that way the last few times we were there. Looking pretty grim here job wise. My son and daughter are both looking for work and not much out there.
Out of the 8 or so I checked, 6 were closed.
Unexpected is putting it mildly. These were all national chain franchises.
Fortunately, our not-so-old local Olive Garden is still open.
We’ve got an interesting trend going in my neck of the Michigan woods. The economy has been devastated longer than any other state and we’ve lost a lot of good restaurants, but those were on the higher end of the scale. The smaller ones — especially the local joints that serve regional specialties — are doing very well.
A brewery/restaurant that closed seven years ago is set to reopen (Cripplecreek, it was Zig’s). Their offerings are starting small like sandwiches and pub fare, but they hope to expand their menu. So many places are making good use of Michigan’s craft brews in spite of our preposterous alcohol transport regulations.
We have Norms restaurants, IHOP few block from local Dennys
I am surprise about Marie Callenders I didn’t know that
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