McDonald’s Corporation’s (MCD) comparable sales for the month of October 2009 showed a sluggish growth of 3.3% as against the rise of 8.2% in the same month last year, exposing its sensitivity to rising unemployment, economic downturn, and the discount war amongst fast-food chains to lure consumers.   The company faces stiff competition from Burger King Holdings Inc. (BKC), Wendy’s/Arby’s Group, Inc. (WEN) and Yum! Brands Inc. (YUM). However, these quick-service operators are faring better than casual dining restaurant chains, such as Cosi Inc. (COSI) and Red Robin Gourmet Burgers Inc. (RRGB), as cash-strapped consumers are trading towards fast-food centers due to relative cheap dining options.  System-wide sales at McDonald’s worldwide restaurants climbed 10.3% for the month of October. However, in constant currencies, the rate of increase in system-wide sales dipped to 5.2%.
 In the United States , comparable sales remained flat ...

California Pizza Kitchen Inc. (CPKI) recently reported third-quarter 2009 results with a mid-single digit fall in the top-line but a surprise double-digit rise in the bottom-line. Effective cost management and a lower tax rate have driven earnings growth.  The quarterly earnings of 24 cents a share surpassed the Zacks Consensus Estimate by a penny, jumping 20% from 20 cents posted in the prior-year quarter. The casual dining operator now expects fourth-quarter 2009 earnings in the range of 16 cents to 18 cents a share.  California Pizza Kitchen continues to experience fall in the top-line. After declining 2.2% and 3.2% year-on-year in the first and second quarters, respectively, total revenue dipped 5.3% to $164.8 million in the quarter under review.  Restaurant sales slipped 5.7% to $161.2 million, royalties from the Kraft licensing agreement soared 35.2% to $2.5 million, domestic franchise revenue fell marginally by 1% to ...

Wendy’s/Arby’s Group, Inc. (WEN), the third largest fast-food restaurant operator, recently reported third-quarter 2009 results. The quarterly earnings of 6 cents a share were in line with the Zacks Consensus Estimate. The company had reported a loss of 14 cents in the prior-year quarter, excluding income from discontinued operations. Lower commodity prices and cost-cutting initiatives have driven earnings.   Consolidated revenue surged 191% year-on-year to $903.2 million due to Wendy’s merger, which added 6,608 restaurants as of Sep 27, 2009, and contributed $613.5 million in total revenue during the quarter. The merger between Triarc Companies, the franchisor of the Arby’s restaurant chain and Wendy's International was completed in Sep 2008.  The quick-service food chain is trying to lure consumers by offering $5.01 combo meals, and plans to make $1 menu available at most of its restaurants to compete with big players like McDonald’s Corporation (MCD) and ...

For Immediate Release

Chicago, IL – November 9, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Red Robin Gourmet Burgers Inc. (RRGB), Darden Restaurants Inc. (DRI), Brinker International Inc. (EAT), Cosi Inc. (COSI) and Tower Group Inc. (TWGP).

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Here are highlights from Friday’s Analyst Blog:

Red Robin Fails to Lure Diners

Red Robin Gourmet Burgers Inc. (RRGB), the casual dining restaurant operator, recently reported dismal third-quarter 2009 results. The quarterly earnings of 37 cents per share missed the Zacks Consensus Estimate by a penny and fell

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Red Robin Gourmet Burgers Inc. (RRGB), the casual dining restaurant operator, recently reported dismal third-quarter 2009 results. The quarterly earnings of 37 cents per share missed the Zacks Consensus Estimate by a penny and fell 17.8% from 45 cents posted in the prior-year quarter.

Total revenue tumbled 10.4% year-over-year to $187 million, as cash-strapped consumers are either trading down to quick-service restaurants or preferring to eat at home, leading to fall in traffic and same-store sales.

Same-store sales fell 14.9% for company-operated restaurants, driven by a 13.8% decline in guest counts and a 1.1% fall in the average guest check. Management expects guest count to decline in fiscal year 2009. Same-store sales for franchised restaurants in the U.S. dropped 14.4% and franchised restaurants in Canada fell 0.2%.

Other operators in the casual dining segment are Darden Restaurants Inc. (DRI), Brinker International Inc. (EAT) and Cosi Inc. (COSI).

Red Robin's

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Texas Roadhouse Inc. (TXRH), a casual dining restaurant chain, recently reported third quarter results that topped the Zacks Consensus Estimate on the heels of lower commodity and pre-opening costs besides a jump in the top-line.   Earnings of 15 cents a share surpassed the Zacks Consensus Estimate of 12 cents and climbed 27% year on year. On account of better than expected results, Texas Roadhouse raised its full-year guidance and now expects earnings to rise 20% as against the 5%−10% previously anticipated.   For the fiscal 2010, management expects EPS growth to be flat to 10%, if comparable restaurant sales lie within the range of (2%) to flat.   The growth in the top-line decelerated. After climbing 12% in the second quarter, total revenues showed a sluggish growth of 4% to $226.5 million in the reported quarter. Restaurant sales jumped 4% to $224.4 million, whereas franchise royalties and ...

For Immediate Release

Chicago, IL – October 29, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Buffalo Wild Wings Inc. (BWLD), Cosi Inc. (COSI), Red Robin Gourmet Burgers Inc. (RRGB), Famous Dave’s of America Inc. (DAVE) and BJ’s Restaurants Inc. (BJRI).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s AnalystBlog:

Buffalo Wild Wings Profit Soars

Buffalo Wild Wings Inc. (BWLD), best known for its chicken wings and sports bar, sustained its growth momentum in the third-quarter 2009 despite economic turmoil and lower consumer discretionary spending. The company reaffirmed its

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Buffalo Wild Wings Inc. (BWLD), best known for its chicken wings and sports bar, sustained its growth momentum in the third-quarter 2009 despite economic turmoil and lower consumer discretionary spending. The company reaffirmed its growth target of 15% in units, 25% in revenue, and 20% to 25% in net earnings for fiscal year 2009, showing its resilience in a turbulent environment. Management expects net earnings to be at the high end of its forecast.  The company’s net profit surged 50.4% year-over-year to $6.9 million. As a result, EPS jumped 52% to 38 cents, in line with the Zacks Consensus Estimate. The double-digit rise in the top-line, menu price increases, new restaurant openings and operational efficiency drove earnings. Total revenue climbed 25.1% to $132.7 million. Sales at company-operated restaurant jumped 26% to $120.3 million, driven by comparable-store sales increase of 0.8% and 33 additional restaurants in ...

A recent survey by the National Restaurant Association revealed a marginal improvement in the Restaurant Performance Index (RPI) for the month of July 2009. The index rose 0.3% to 98.1 from June. The index has remained below 100 for 21 consecutive months. An index of more than 100 would indicate that the restaurant industry is in an expansion phase, whereas below 100 would indicate that the industry is scaling back its development plans and is in contraction. The Restaurant Performance Index, which measures the health and outlook for the U.S. Restaurant Industry, comprises the Current Situations Index and the Expectation Index. The Current Situation Index, which measures comparable store sales, traffic count, labor costs and capital expenditures for the month being surveyed compared to the same month in the prior year increased 0.2% in July to 96.8. The Expectations Index, which measures restaurant operators’ outlook ...

Benihana Inc. (BNHNA), the operator of Benihana Teppanyaki, Haru and RA Sushi restaurant concepts, recently reported its fiscal first quarter results with a low single-digit rise in the top line but a sharp double-digit fall in the bottom line. Results were adversely affected by a softer sales trend and higher restaurant level costs amid a turbulent economy.   Total revenues for the quarter under review ascended 1.6% year over year to $96 million. Restaurant sales rose by 1.6% to $95.5 million, whereas franchise fees and royalties fell 5.2% to $507,000. By concepts, restaurant sales slipped 1.6% to $63.2 million at Benihana Teppanyaki restaurants and 14.8% to $10.1 million at Haru restaurants, but jumped 24.2% to $22.1 million at RA Sushi restaurants.   Benihana’s quarterly earnings of 5 cents a share was well below the Zacks Consensus Estimate of 11 cents, and fell sharply by 58.3% from 12 cents ...