Quick_Service

Financing

Struggling Hardee's terminates a large franchisee

The fast-food burger chain sued ARC Burger, a 77-unit franchisee that bought the restaurants out of bankruptcy just two years ago, over unpaid royalties, rent and marketing funds.

Financing

The story of McDonald's strange year, in 2 parts

The Bottom Line: The quick-service giant’s dichotomous year was illustrated with back-to-back stories on the chain’s successful Grinch meal and its new value-focused franchising standards.

The fast-food giant, which is trying to bring back lower-income consumers frustrated by menu price inflation, will take additional steps to monitor operators’ work with third-party pricing consultants.

The fast food giant’s latest effort at nostalgia-based marketing is apparently flying out of its restaurants, to the point that locations are already running out of the chain’s Grinch-themed socks.

The fast-food chicken chain will shift to a more traditional owner-operator model on college campuses and other non-traditional locations. That will bridge the service gap with its other restaurants.

The Bottom Line: The two companies have spent years amassing large collections of mostly underperforming restaurant chains. The results have been predictable.

The bank that acts as the trustee on the company’s securitized financing has sent an acceleration notice for the last of five shell companies that hold the restaurant operator’s debt.

The Bottom Line: The fast-food sandwich giant has closed 7,600 locations since 2015, more than any other U.S. chain in history, and about the same number of restaurants that Taco Bell currently operates.

The coffee shop giant will pay $35.5 million to more than 15,000 workers over scheduling violations and hours reductions. The company said that the payments are about “compliance, not unpaid wages.”

The fast-food sandwich giant’s new “Sub Club” program gives a free footlong sandwich after just three same-sized purchases, which is among the industry’s most generous. "Financial suicide."

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