Skip to comments.Domino's, Denny's And Wendy's All At Risk Of Going Broke (w/obligatory Palin snark included)
Posted on 07/04/2011 1:19:27 PM PDT by 2ndDivisionVet
We live in a backwards world where great things happen to bad people, bad things happen to good people, and where Sarah Palin is considered a legitimate presidential candidate. The greatest example of the inverse nature of our universe is the success, or lack of success found by restaurants around the world, particularly the United States. We live in a world where Noahs Bagels nears bankruptcy while McDonalds thrives on our fatty flesh (and charging for sauce packets? GET THE HELL OUT OF HERE.).
In a list published by The Street, twenty restaurant chains are at risk of going under. Some are on their way up, others on their way down, and some are just chilling out in mediocrity. The list was compiled using an Altman score which combines a bunch of different factors to measure the health of a company (and its investment quality). Over a 3.1, youre all good; under a 1.8 and youre screwed; anywhere in between is a glorious grey mass. It should be noted that a company filing for bankruptcy does not equal its speedy dismissal from this Earth. Marie Callenders went bankrupt earlier this year, and while theyll be closing many of their mediocre restaurants; Im almost positive the one outside Six Flags Magic Mountain will remain open. Thank God, how else am I supposed to get free parking for Six Flags? Oh, and expensive pies.
Red Robin and Sonic are both on their way out of despair, which is a shame; there is nowhere more mediocre than a Sonic restaurant. Its the kind of place people go to because they cant come up with anything more interesting, or after they've already been to Carls Jr. four times that week. Red Robin is overpriced, and the service has always been meh. Seriously, charge me fifteen dollars for a burger without smiling? Screw you, bro.
Noahs Bagels is also recovering, which is great; because Id probably cry if the only decent bagel place in my area shut down. Dominos Pizza is also considered a bankruptcy risk, although its stock has risen 85% over the past year. It remains 29% lower than it was pre-recession, but thats partially because the pizza tasted like cardboard until about a year ago. Moral of the story: bad companies have a harder time selling their slop when no one has any money.
DineEquity, the restaurant group that owns Applebees and IHOP is also struggling mightily, although the almost-as-good-as-TGI-Fridays casual restaurant chain has experienced some growth recently due to a revitalization of the brand. IHOP has continued to struggle though, probably because the pancakes suck, and Dennys is at least perceived as having a greater swath of options than a place that is dedicated 100% to pancakes, more or less.
Apparently not as many people are thinking Arbys as the commercials claimed; the Wendys/Arbys group is diverging, so that the company can focus on their namesake brand (Wendys). First step: Enough of the damned sea-salt french fries. My hamster loves them, but hey, he also licks a block of salt all day just to get his kicks. This is one company that is moving downwards right now, which seems to be the exception and not the rule on this list.
Dennys is a weird one because while it has turned a profit four straight years, it has a negative Altman score. Im obviously not a stock expert, but this seems weird to me. Apparently the chain has underperformed and taken heat for giving away too much food; all I know is that those grand slam breakfasts are freaking awesome -- as is the heartburn that follows.
Heres a list of the twenty riskiest restaurant stocks, better head out to your favorites to hopefully push them back towards the black! The list goes from least risky to most risky:
Red Robin Gourmet Burgers
Carrols Restaurant Group
Einstein Noah Restaurant Group
Ruths Hospitality Group
McCormick & Schmicks Seafood Restaurant
Bravo Brio Restaurant Group
Ricks Cabaret International
Mortons Restaurant Group
Granite City Food & Brewery
Good Times Restaurants
I dunno, the clown lost me when he threw that dig at Sarah Palin.
I for one wont miss domino’s. Quite possibly the most digusting pizza ever; microwaveable pizza taste better.
He also has no concept of a good pancake. I love IHOP pancakes.
Let’s face it, they aren’t a gourmand delight, but that have that addictive quality White Castles or Jack in the Box Tacos have.
When 2012 finally gets here I’m really going to enjoy pointing and laughing at liberals
Restaurants have a very small profit margin and many of these restaurants rely on high volume and upselling to make a profit.
Plus, you got the Obama inflation and a recessionary economy, which equals stagflation, a word that nobody wants to mention in the media, because that might hurt Obama’s chances for re-election.
Why can’t these idiot Republicans in the elite of the party start attacking Obama for stagflation?
Obamanomics is a complete failure and the GOP is pussyfooting around.
I wouldn’t miss any of them except maybe Denny’s if you’re traveling on Christmas day (they were the only ones open).
I have noticed that Girlymen seem to be hysterically frightened of strong women.
“Another accomplishment of the Obama administration. Can we stand four more years? “
Most countries have NEVER developed the concept of relatively cheap eat-out food. Either you pay THROUGH THE TEETH, or you eat at home. We developed it due to our free-market system, and (relatively) cheap labor.
But those days are quickly going away...and while they may want to blame Palin, the last time that I checked, she was POWERLESS at the national level.
But Obama is far from powerless - and soon, a HUGE swath of what had been American life will be gone, and only the VERY EFFICIENT, like McDonalds, will be around.
Personally, I don’t mind...I’ve had it with expensive places to eat, and love McDonalds, but the liberals will have a cow - and will still likely blame Palin.
Hmmm, is it just me or is this Jacob Sundstrom practically dancing around and pleasuring himself with the thought that all these restaurants favored by us common schmucks going under?
p.s. the IHOP in my neighborhood makes great pancakes.
p.p.s. and where the heck do you find Red Robin Gourmet Burgers?
Ruth’s Chris and Morton’s are way over-rated and the prices are out of control.
You want to drop $40-50 on a steak house, find a Fogo de Chao for unlimited amounts of prime cuts of meat in a great atmosphere; and it’s only $28-32 for lunch during the week.
How can Fuddruckers not be on this list. Food is way over-priced and the quality is bad.
In my former city, the ones only open on new Year’s and Christmas Day were the Chinese and Asian restaurants. It’s sort of like tradition to bring your entire family/clan and enjoy life. Those restos never close as far as I know.
Couldn’t read past the first insulting sentence.
But to the author, I will say:
Resistance is futile!
Prepare to be liberated!
GOD BLESS AMERICA
Happy Independence Day, 2ndDivisionVet!
There is one less than 100 yards from Gillette Stadium at Patriot Place in Foxboro MA. Very good burgers, moderately priced.
“Its the kind of place people go to because they cant come up with anything more interesting, or after they’ve already been to Carls Jr. four times that week”.
...with digs like this, I’d say this little twirp is enjoying seeing commoner slop houses (as he’d refer to them) going under.
I’m with you.
As soon as I see something like that it stops me cold, realizing I’m reading the writings of an elitist or a drone.
Author working overtime to try to be clever. AND it shows.
The Ricks Cabaret, that I know is for pole dancing, not food.
“Ricks Cabaret International”
I do not believe that Ricks Cabaret International is technically a restaurant.
Mortons Restaurant Group
Morton’s would be a tough one to lose.
Our family stopped at a Wendy’s yesterday and the tab came to $31! We would have spent about the same at a much nicer sit-down restaurant.
Travel more. Sure we are the kings of quick eats, but every country have their versions of quick eats. You have the traditional fish n chips in england, kebabs, falafel, chinese fast food, german brats. I mean sure, we have all the chain stores, but doesnt mean theyre good places to eat, just means theyre open everywhere. As for me, personally id rather eat at a non-chain fast food place if im eating that type of food, as they tend to be by far the best fast food.
Go to Fogo de Chao once and you will never go to Morton’s again.
Wendy's made a considerable improvement with their fries. Before they tasted like the OreIda fries that you left in the back of your freezer for three years and then decided to try to cook them anyway. Not so much nasty as tasting of fried cardboard. Now they are half way decent.
I never liked Lenny’s.
I like Wendy’s new fries...
Cincinnati...I hate them!
The only problem with that Red Robin is that you have to go to Patriot Place.
I’ve been there about 10 times and hated every minute of it. (I went because others wanted to see it}
Been following presidential politics since 1956...never seen anything like the media hit on Palin. Libs appear terrified of a beautiful, successful, married with kids, conservative woman.
Just terrified. Oh my, how they hate her.
We live in a backward world when we get our information from a web site called Pop Blend.
(Save your cheapest shots for those who lob them.)
I regard a little junk food as an indulgence for a little celebration, not a steady diet. My current favorite fast food burger is the Little Thickburger from Hardee's--I order no cheese, no catsup and easy on the mayo. This smaller burger is just right for your burger attack, and they put plenty of lettuce and tomato.
Yes...Wendy’s is way too expensive for what you get.
Interesting read to look at minimum investment for various franchises.
Subway/Blimpies at about $80k,..McDonalds at $200k,...KFC at $360k,...Jack in the Box at over $1.1mil.
“Our family stopped at a Wendys yesterday and the tab came to $31! We would have spent about the same at a much nicer sit-down restaurant.”
Yea - their whole segment of the restaurant business is going to get squeezed out. We’ll wind up like much of Europe, with some very efficient fast-food places that Americans will use when they feel like splurging once a month or so, and some very upscale restaurants for the Chinese to eat at, when they visit.
“But to the author, I will say:
Resistance is futile!
Prepare to be liberated!”
How about changing the last sentence to: “Prepare to be conserved”.
Todd Palin must be one hell of a man!
Hey, that’s socialism in action.
Don’t like it?
Take it up with Premier Hussein.
Attractions Host at Disneyland
Now I'm not calling Jake a bit shallow in the experience department when he is observing popular trends, but Jake might want to get out of the leftburbs for just a minute or two.
Granite City is about the best of that bunch.
Yes...Wendys is way too expensive for what you get.
Stay in the value menu and its not to bad. I bring my own drink, and hit the drive thru. I eat pretty good for 3.50.
Not out on the road near as much as I use to. So likely won’t be making that stop any more (plus the wallet screams “he!! no” now)
I'd love to see the nationwide opening of 'Sarah's Caribou Burgers'. I'd buy a lot of them!
Dude's paying 15 bucks for a burger at Red Robin? Where is he? On the moon?
He's probably upset they don't give him enough crayons to solve the placemat maze.
We have Subways popping up like zits on a teenager around here. Lots of them doubling up with gas stations/convenience stores.
I like Subway, but there's just something about the heavy smell of the breads that permeate every inch of the place. And some of their breads don't smell all that great.
5 Guys is about the same cost as Wendy’s...and 100X better.