Posted on 06/30/2011 1:45:17 PM PDT by TSgt
Following bankruptcy filings by Sbarro, Perkins and Marie Callender’s this year, new data suggests that other popular restaurant chains are in danger of following suit.
TheStreet.com recently looked at restaurants based on their Altman Z-Score. The website says the score is based on “several aspects of a company's financial health -- including working capital, total assets, total liabilities, market capitalization, sales, retained earnings and earnings before interest & taxes (EBIT) -- to forecast the probability of it going bankrupt within two years.”
Since it began the scoring system in 1968, TheStreet says the formula has been 72 percent accurate in predicting corporate bankruptcies two years prior to the filing.
The list of restaurant in order of most at risk to file for bankruptcy (limited to those with a market capitalization of $100 million):
1. Denny’s 2. Wendy’s/Arby’s 3. Morton’s Restaurant Group 4. DineEquity (IHOP, Applebee’s) 5. Domino’s Pizza 6. Bravo Brio Restaurant Group 7. McCormick & Schmick’s 8. Ruth’s Hospitality Group (Ruth’s Chris Steak House, Mitchell’s Fish Market) 9. O’Charley’s 10. Einstein Noah Restaurant Group
It's getting scary bad with no end in sight!
I stopped eating at most fast food places once filthy people from other countries started owning them. Know what I mean?
Some of my favorite steak houses are apparently in trouble! I had no idea.
Some of my favorite steak houses are apparently in trouble! I had no idea.
Many of the companies overbuilt. Many locations are in marginal areas, now those marginal areas aren’t profitable.
I read an article yesterday where it said that large chains were cutting massively because of Obamacare. One FF chain was quoted as cutting from 70 employees per site to 50.
Sorry for the double post
Pretty scary times. Although the Applebee’s here is so crappy I would pay to shut it down, I DO usually like Arby’s and Wendy’s. And Domino’s Brooklyn pizza.
I don’t do fast food, haven’t in years.
Way too greasy and delicious! :)
Taking your lunch to work and eating dinner at home are simple things you can do to save a lot of money.
Given how long the economy has been down, it’s not surprising restaruants are hurting.
“It’s getting scary bad with no end in sight!”
Change you can believe in...
People are having a difficult time putting groceries in the fridge. I know we eat out on rare occasion. Our town use to have two Pizza Huts... both went under. On Friday or Saturday, you would see all sorts of pizza delivery cars in our neighborhood. You see them rarely now. Yep, things are bad.
People are home eating rice they have saved up from Wal Mart. Obama is having great success in his mission to destroy the USA. We are defenseless. The GOPS have cut and run for the hills leaving the country open for plunder.
I’m glad Golden Corral isn’t on the list!.......
The key to the asylum should be “I think I will open a restaurant.”
I’ve never tried Arby’s...What’s good??
As for Ruth's Chris, I suspect they're a victim of their own success (and expansion). Back when that chain was just a few restaurants, those locations would've ensured enough business to keep the doors open even in bad times.
Charlie Brown’s closed here last October. Open one day, closed the next! Just like that..gone.
I felt bad for the employees. Mostly young college kids, probably Obummer voters too. So much for that Hope n Change crap.
No, I really don't. I know when I go into a Dunkin Donuts owned by a Pakistani or Korean family, that place runs like a well oiled machine. When I go into a McDonald's staffed by (presumably) Mexican born people, I expect and receive better service than when the McD's is staffed by a bunch of native (small n) Americans.
That said, I'm surprised to see Dominos on the list. I know their pizza has always stunk relative to the Italian guy's on the corner, but it's better in the last year or so and now they have that great online ordering system. We've ordered more Dominos in the last year than we probably have in the previous 20 years combined.
I have noticed a lack of stray Cats and Dogs.
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