Quick_Service

Financing

El Pollo Loco threads the profitability needle

The fast-food chicken chain gave its customers value, which generated traffic but not sales. But restaurant-level profits grew, too. And then results improved in October. The company's stock skyrocketed.

Financing

Burger King's sales accelerated last quarter

The fast-food chain’s same-store sales rose 3.2% last quarter despite a tough market for the quick-service sector. Firehouse Subs and Tim Hortons also saw improved sales, but Popeyes lagged.

The Bottom Line: The fast-food chain has remained disciplined on value even as competitors like McDonald’s intensified their own discounts. That’s a massive change from the Burger King of old.

Burger King, Chipotle, Shake Shack and Darden Restaurants have all said that record beef prices are driving up their commodity costs. But the ability to raise menu prices is limited.

The coffee shop giant reported its best sales quarter since its sales slump began and said its U.S. business turned positive in September and October, thanks to its new “Green Apron” service model.

The Bottom Line: Restaurant chains used to be able to win customers by making their ordering process as easy as possible. But with so much convenience available, customers now want something more.

Drink sales at the fast-food Mexican chain have skyrocketed this year, even before it has expanded its Live Más Café concept. It plans to open more of the beverage-focused, in-restaurant cafés in Texas next month.

The Bottom Line: There has never been a purchase of a restaurant chain the size of the sandwich brand Potbelly by a convenience-store brand. History suggests it could be a difficult road.

The fast-food Mexican chain is increasing education benefits and leadership programs for workers employed by franchisee-owned locations, saying it improves retention for employees and general managers.

The coffee shop chain, fresh off a strong summer and the opening of its 10,000th location, is planning to test “Project Chill,” a reconfigured afternoon setup aimed at a younger crowd.

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