Restaurants/Pubs

Buffalo Wild Wings could push for a spiced-up bid

14 November 2017

Private-equity firm Roark Capital made a $2.3 bln bid for the chicken restaurant, according to a report. That’d give activist Marcato only a modest return after a tough battle for board seats. Buffalo Wild Wings has lost some flavor, but it can still press for a little more.

Asian bid for Pret A Manger won’t cut the mustard

18 September 2017

Filipino fast-food joint Jollibee is eyeing the fancy sandwich chain, says Reuters, potentially uniting Chickenjoy buckets and posh ploughman’s baguettes. But a mooted price of more than $1 bln looks far too downmarket. It might need to double that to derail Pret’s IPO plans.

McDonald’s boldly supersizes its China strategy

9 August 2017

The burger chain will nearly double its mainland presence in five years, aided by new partners CITIC and Carlyle. McDonald’s is considerably smaller than market leader Yum. So breakneck growth makes sense – provided it can avoid slip-ups on food safety and quality control.

Chipotle’s yuck overwhelms financial yum

25 July 2017

The $10 bln burrito chain delivered healthy financial results that exceeded expectations. It won't be enough to restore confidence, however, after a new suspected norovirus outbreak and video surfaced of rodents at one location. More radical change at the top may be necessary.

Buffalo Wild Wings is recipe for CEO nervousness

5 June 2017

Marcato got three nominees elected and forced longtime boss Sally Smith to quit – the activist's original goal. That makes the other directors look oblivious to the omens before Friday's vote. Other leaders of companies under pressure can expect dwindling board loyalty.

Chipotle partly fulfills Bill Ackman’s order

26 April 2017

Recovering sales at the $14 bln burrito chain helped keep the pushy investor's big bet on a roll. A new payments data breach could make investors queasy again, though. Chipotle has a long way to go before it cooks up the kind of return Ackman's Pershing Square typically craves.

Yum China slowly cooking up value for investors

6 April 2017

Separating KFC owner Yum Brands from its Chinese unit has yet to bring super-sized returns for shareholders. At least same-store sales in the People’s Republic are improving, especially at Pizza Hut. Drawing up recipes for corporate value creation is easy. Delivery takes time.

Baked-in premium makes Panera a fattening morsel

3 April 2017

The $6.6 bln bakery chain has leavened its growth rate with new mobile ordering and delivery services, which has buyers circling. An 8 pct price jump pushed its valuation to new highs. Buying the company, like eating one of its 720-calorie pecan rolls, could produce indigestion.

Darden owners get too gluttonous over cheesy deal

28 March 2017

Shares of Olive Garden's parent had their best day in nine years after snagging rival casual-dining chain Cheddar’s for $780 mln. It's a decent enough deal, and scale helps improve margins in the restaurant trade. But it hardly merits a rally equal to the price paid.

Starbucks embarks on ultimate market test: Italy

28 February 2017

Howard Schultz wants to woo espresso-mad Italy, which inspired his $82 bln creation, with its first-ever swanky "Roastery" in Milan. Italians have long resisted filter coffee. But depressed real estate and a partnership with an artisan baker could give Schultz the jolt he seeks.

Cox: Trump’s labor secretary is more about capital

30 January 2017

Burger-joint entrepreneur Andrew Puzder, the nominee to run the U.S. Labor Department, co-wrote a 2010 book offering a turgid - if mercifully brief - manifesto on how to get people working. But Puzder's jobs may lack the qualities the government agency was created to champion.

Heineken can go another round in pub brawl

15 December 2016

The Dutch brewer and its partner have topped up a cash offer for Punch Taverns to 403 mln pounds. Investors are thirsty for more, possibly from a rival suitor. Heineken could keep up a bit longer in a bidding war before the financial return left any strategic merits tipsy.

Heineken’s UK pub binge not as retro as it looks

14 December 2016

The Dutch group has offered 390 mln pounds for Punch Taverns in a bid to triple its holdings of British drinking houses. Though most brewers got out of the business long ago, pubs are a petri dish to try out new products. A rival bidder may force Heineken to pay more, though.

China is still firmly on the menu for McDonald’s

8 December 2016

The U.S. burger giant is nearing a $2 bln sale of its local unit to an investment consortium. Viewing this as a simple retreat is tempting but misguided. As elsewhere, franchising is a better business than owning and operating stores. A big Chinese partner brings myriad benefits.

Chipotle recipe is deep inside activist cookbook

7 September 2016

Pushy investor Bill Ackman bought a 10 pct stake in the struggling burrito chain, but hasn't revealed his plans. Previous stakes in Burger King, McDonald's and Wendy's have few obvious parallels. Creative finance can't fix Chipotle's real problem: reviving a damaged brand.

Restaurant Group self-criticism bitter but healthy

26 August 2016

Bigger companies could learn from the UK restaurant chain’s honesty. It blamed a like-for-like sales fall of 3.9 pct on ill-thought-out menu changes, bad pricing and poor service. Closing stores helps, but stimulating demand is more important than tinkering with expansion plans.

McDonald’s super-sizes its faith in the Windy City

13 June 2016

The Golden Arches’ move from the suburbs to Chicago proper shows tech and finance aren’t alone in seeking big-city talent. It’s not just another sign of urbanization. It’s a vote of confidence in the junk-rated city, though Mayor Rahm Emanuel still has his work cut out for him.

Turnaround whizzes 3G could shake up diversity too

13 June 2016

The Brazilian investors aim to revitalize stodgy brands like Burger King. There’s work to do on their boards, though. The restaurant holding company’s all-male lineup looks very 20th century. A shareholder failed to force action, but 3G risks distraction if it doesn’t catch up.

Digesting Krispy Kreme may require more sweetener

9 May 2016

JAB has baked a 25 pct premium into its $1.4 bln offer to take the donut maker private. The billionaire-backed owner of coffee sellers Keurig and Peet’s should be able to boost sales and margins. But Krispy Kreme may prove too appetizing for others to pass up without a fight.

Too many cooks spoil UK restaurants’ broth

29 April 2016

Shares of the Restaurant Group, owner of the Chiquito chain, dropped a fifth after it warned of slower sales, hit by lower footfall in shopping malls. The sector is also gorging on overexpansion. New stores are opening at twice the speed of consumer spending on eating out.