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Yahoo
4 days ago
- Business
- Yahoo
Chipotle's negative same-store sales streak continues
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Chipotle's same-store sales declined about 4% during Q2 2025, continuing a trend of negative growth that began in Q1, the company said in a Wednesday earnings report. The decrease was driven by a 4.9% drop in transactions, partially offset by a 0.9% increase in average check. While Q2 marks one of the brand's worst quarters for comparable sales growth since 2020, Chipotle expects flat comparable sales for the year, according to the report. Ongoing volatility with sales related to consumer spending led the chain to that projection, CFO Adam Rymer said on a Wednesday earnings call. Dive Insight: Despite a slowdown in May, sales momentum grew in June, Boatwright said during the earnings call, thanks to enhanced marketing initiatives and menu innovation. 'Exiting the quarter, we returned to a positive comp and transaction trends, which have continued into July,' he said, adding that consumer confidence also appeared to improve in June and July. During the second quarter, Chipotle's total traffic was up 0.7%, compared to a 0.5% increase in fast casual segment traffic, according to data. While traffic chainwide was up at Chipotle, visits per location fell 6%, according to which uses tens of millions of devices and machine learning to estimate visits to locations in the U.S. Comparatively, traffic was flat per location in the fast casual segment. measurements often yield slightly different, but still useful, results from company earnings reports. 'Some of the dip is likely due to lapping the successful Chicken al Pastor launch and to the Easter calendar shift, which made for a difficult comparison,' said. 'But the dip had narrowed to just -1.5% by June 2025, suggesting that the chain may be seeing the impacts of its latest menu additions.' Comparable sales fell during the first half of 2025. In mid-March, the company launched Chipotle Honey Chicken, which was the highest performing LTO in the company's history, and consumers included the protein in about a quarter of all orders. The company plans to expand its LTO cadence from two annually to three, Boatwright said. 'The guest feedback has been very positive,' Boatwright said. 'It will certainly be another LTO that we will bring back in the future.' The company also added its first dip in five years, Adobo Ranch, which is driving incremental transactions, Boatwright said, adding that the chain sees more opportunity to add sides and dips in the future, and already has a side that could launch in the fall. Chipotle has been boosting marketing, with the goal of doubling its reach on social media and streaming, Boatwright said. The goal of summer initiatives was to overcome summer lulls that the company has seen in the past few years, he added. The chain also launched its first 'Summer of Extras,' a three-month gamified program that offers extra points, badges and prizes to rewards members. New membership in the rewards program grew 14% year over year. 'We drove incremental frequency versus normal behavior across all frequency bands, including low frequency,' Boatwright said. 'Of the 5 million, 2 million were low-frequency users that are now engaging with the brand throughout summer on a more consistent basis.' Boatwright added that the chain plans to do another program in the fall targeting college students. Recommended Reading Chipotle's same-store sales wobble on economic uncertainty 登入存取你的投資組合
Yahoo
5 days ago
- Business
- Yahoo
Wendy's replaces outgoing US president
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Wendy's has hired Pete Suerken for the role of president, U.S. on Tuesday, replacing Abigail Pringle, who is leaving the company effective Aug. 15, according to an 8-K filed with the U.S. Securities and Exchange Commission. Pringle is leaving the company to pursue other opportunities, according to a press release. She served as Wendy's U.S. president since June 2024, following more than two decades in various roles at the brand. Suerken joins Wendy's leadership at a moment of C-suite upheaval. CEO Kirk Tanner defected to Hershey earlier this month after a tenure of roughly 18 months. Tanner was replaced on an interim basis by CFO Ken Cook, a former UPS exec who has only been with the chain since December. Dive Insight: Suerken's appointment is an indication the brand is searching for stability. Despite technically being an outside hire, Suerken has extensive knowledge of Wendy's system. He served as president and CEO of its independent purchasing cooperative, Wendy's Quality Supply Chain Co-op, since 2021, according to the press release. In that position, Suerken led supply chain and distribution operations for Wendy's restaurants around the world. Suerken will focus on the chain's U.S. priorities, which include 'delivering exceptional customer experiences, increasing restaurant-level profitability and accelerating growth,' Cook said. Suerken also spent more than a decade at Yum Brands' purchasing co-op, Restaurant Supply Chain Solutions, according to the press release. Cook said Pringle 'has been a key leader of restaurant development at Wendy's, including our Image Activation journey and creation of the modern restaurant image for the brand. She transformed our International business and put a solid structure in place to optimize restaurant performance in the U.S.' The executive changes come at a difficult moment for the brand, and for QSRs overall. In October, Wendy's announced a plan to shutter about 140 underperforming restaurants, and the chain's same-store sales fell 2.8% in the U.S. in Q1. But that conceals a fairly steady performance for the chain. Wendy's has seen positive comps growth in seven of the last eight quarters — though that growth was often small — while McDonald's and Burger King both posted multiple negative quarters in the same timespan. And the chain is making tech changes to boost its speed of service and restrain labor costs by deploying drive-thru voice artificial intelligence at 500 restaurants this year. Recommended Reading Wendy's CEO departs for Hershey Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Brix Holdings acquired by Friendly's franchisee
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Legacy Brands International, an investment group led by Friendly's franchisee Amol Kohli, is acquiring Brix Holding Company, the parent company of Friendly's and several other brands, the companies announced Tuesday. Kohli will assume the position of board chair at Brix, while CEO Sherif Mityas will remain in place along with the current leadership team, according to the press release. Existing Brix ownership will continue involvement with the company and become investors in Legacy Brands. Brix will continue growing its brands, which also include Clean Juice, Orange Leaf, Red Mango, Smoothie Factory + Kitchen, Souper Salad, and Humble Donut, and will pursue further acquisitions. Dive Insight: Kohli owns more than 30 Friendly's locations on the East Coast, a significant portion both of Friendly's store system — which was about 100 units as of mid-2024 — and Brix's roughly 250-unit storebase across all its brands. According to the press release, Kohli's operational experience could help with the expansion of Brix. Backed by Legacy Brands, Brix is pursuing immediate growth for Friendly's in Georgia, the Carolinas and Texas — where Brix is headquartered. The press release states that Brix's brands have had a successful run over the last year. 'The company had positive same-store systemwide sales comps in 2024 and is showing continued momentum across its portfolio of brands heading into the second half of this year.' Last year, Mityas told Restaurant Dive that Friendly's sales success in recent quarters was driven by menu changes, significant brand loyalty and a restrained pricing approach. At the time, Mityas said Brix was offering franchising discounts to persuade existing franchisees to build new units and to draw new operators into the system. According to the press release, Brix has awarded eight new franchise agreements so far this year, though the company did not specify which brands had awarded those agreements. Brand acquisitions by franchisees have become a trend in restaurant mergers and acquisitions in recent years. Thrive Restaurant Group bought out Modern Market Eatery last year after signing a major franchising agreement with the brand. Sun Holdings, a Burger King franchisee, has built up a multi-brand platform in other restaurant segments and recently acquired Uncle Julio's. Earlier this year, two franchisees bought a significant chunk of Hooter's storebase during Chapter 11 proceedings and also assumed responsibility for much of the brand's franchisee support. Recommended Reading Friendly's plans a comeback after decades of decline Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
18-07-2025
- Business
- Yahoo
Southern Del Taco franchisee goes bankrupt
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Del Taco franchisee Matadoor Restaurant Group filed for Chapter 11 bankruptcy protections on Tuesday, according to court filings with the U.S. Bankruptcy Court for the District of South Carolina. The company, which is wholly owned by Red Door Brands, operates 22 Del Taco units in Georgia and Alabama. The company lists between 100 and 199 creditors and has estimated liabilities between $1 million and $10 million. Matadoor said in court filings that it started to struggle financially in the last half of 2024 due to 'company growth, an unexpected decline in sales, and rising operational costs.' Dive Insight: Matadoor is the latest Del Taco franchisee to take a major financial hit. Newport Ventures, which owned 18 locations in Colorado, closed all of its restaurants in February after declaring bankruptcy last October. Del Taco took ownership of these units and began reopening 17 of the locations in late June. Del Taco owner Jack in the Box said earlier this year that it is considering selling the chain that it bought in 2021 for $575 million. Del Taco has struggled in recent quarters to grow same-store sales, posting a decline of 3.6% in fiscal Q2 2025, according to an earnings release. Franchised same-store sales were down 4.2%, while company-owned units were down by 1.7% during that quarter. Matadoor's financial situation has not improved in the past few months, either. It took out various merchant cash advance loans to bridge its financial gaps while it analyzed its cash flow problems. The company closed two underperforming units and took out additional loans. These loans put Matadoor into further debt 'due to the excessive fees, excessive effective interest rate, and aggressive payback schedules,' according to court documents. The company ended up taking out 10 of these loans from nine different creditors, with loans totaling about $2.7 million. 'Despite its efforts to reduce expenses, the Debtor's revenue has not been able to keep up with the MCA obligations,' the court document said. This has led to each of these creditors claiming an interest in Matadoor's future sales and/or accounts receivable. A handful of its creditors filed UCC-1 financing statements, which are documents filed with the state that basically gives creditors priority over assets when a company becomes insolvent, according to the Legal Information Institute. A lien hold was placed on some of the debtors' accounts recently, which has been detrimental to Matadoor's ability to operate. The company said it had to file Chapter 11 to stop collection efforts and allow for Matadoor to reorganize. Matadoor's parent company also owns Red Door Pizza, Red Door Sandwich and Maverick Restaurant Group, which operate various QSR brands, including Little Caesars, McAlister's Deli and Arby's. Each of these sister companies have filed separate Chapter 11 bankruptcy petitions and cited Matadoor's financial difficulties as reasons for the filings. Recommended Reading Del Taco closes 18 Colorado stores Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-07-2025
- Business
- Yahoo
Naf Naf Grill CEO to retire
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Greg William, the CEO of Naf Naf Middle Eastern Grill since 2020, is retiring, according to a Monday press release. CFO Grady Metoyer will assume the CEO responsibilities at the 39-unit Mediterranean fast casual chain on an interim basis, according to the press release. William will work with Metoyer and the board over the next two months to ensure a smooth transition, then will remain an active board member and investor, the company said. William became the brand's first franchisee in 2019 and expanded the Chicago-based brand into Indianapolis and Carmel, Indiana. He ascended to the CEO post a year later. Metoyer, meanwhile, has served as CFO for eight years, according to the press release. He has over 25 years of experience in the food and beverage industry and has worked in various finance positions at Sysco and its subsidiary SYGMA as well as Food Brand, a 100-unit fast casual operator. Naf Naf has experienced both growth and contraction in recent years, according to its Franchise Disclosure Document. Its unit count jumped from 29 to 38 in 2022, before remaining flat the next year and nudging up to 41 as of the end of 2024 — before settling at the 39-store figure in the press release. The chain has been working with Love's Travel Stops & Country Store to open non-traditional locations. Additionally, its average unit volume hangs around $1 million, with company-operated units seeing an average net sales of $1.2 million and franchisees stores an average of about $855,000. This AUV is low in comparison to the segment leader, Cava, with stores boasting an AUV for $2.9 million in 2024, according to an earnings release. Like many Mediterranean fast casual brands, Naf Naf may be hoping to catch consumer interest in healthy, bowl-based options and Mediterranean flavors to power its future growth. But for the brand, as for other competitors like Taim, this growth will depend on finding ways to differentiate itself from Cava, which is well-positioned to outperform the restaurant industry and grow quickly, according to analysts. And Naf Naf will face that competitive battle on its own territory now. When Cava entered the Chicago market last year, the brand said it was its strongest market entry ever. Recommended Reading Naf Naf grows partnership with Love's Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
