Financing

How your restaurant sales and profits compare to competitors' and what you can do to improve financial performance

Financing

How convenience stores and supermarkets are gunning for restaurants

A Deeper Dive: This week’s episode of the restaurant finance podcast looks at the retail sector and its push into prepared food. Also, what restaurants can learn from the closure of some of Amazon’s retail shops.

Financing

Why did Yum Brands buy Habit Burger?

The Bottom Line: Yum Brands bought Habit Burger in 2020 with the intention to grow the brand. The company does not even mention the brand in its earnings calls.

The fast-food Mexican chain reported 7% same-store sales growth last year. The key metric has declined just one quarter over the past decade.

The casual-dining operator will close 14 locations of the seafood brand and convert another 14 to other brands. It had been considering strategic alternatives for Bahama Breeze.

Parent company Restaurant Brands International has sold an 83% stake in Burger King China to CPE for $350 million, more than double what the fast-food operator paid for the business last year.

The Bottom Line: Two large franchisees blamed merchant cash advances on their recent bankruptcy filings and Fat Brands used it at least once. But the funds are expensive and dangerous.

The fast-food giant also supports 1 million jobs, including 740,000 people who work in the chain's restaurants, according to a study the company commissioned by Oxford Economics.

The Bottom Line: The pizza chain’s shift from a full-service model to takeout and delivery was the biggest service model shift in restaurant industry history. But it has not spurred the growth for which the company hoped.

MTF Enterprises, which operates locations in Pennsylvania, New Hampshire, Maine and Virginia, declared Chapter 11 bankruptcy after a merchant cash advance lender put a lien on its sales revenue.

The Bottom Line: This week’s episode of the restaurant finance newsletter contrasts news about Chili’s and rival Ruby Tuesday, which are going in different directions.

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