Viewpoint
Boom, Bubble, Bust!
As I pen this article the Dow has dipped below 9,900, the European credit markets are in turmoil, the Nikkei hit a 4 ˝ year low and the Latin American markets are plunging led by Brazil down 15% thus far today. I suspect international credit crisis concerns have led most to anticipate a worldwide recession. Oh how I much prefer to use the expression, “fasten your seatbelts and hang on to your hats” in preparation for the rapid ascendancy of an emerging brand or the upward trajectory of a booming segment. The only good news I can offer now is that when this is all over our industry will be flush with well-capitalized companies as over- leveraged will not be an option.
The Big News
Washington, D.C. - The National Restaurant Association issued the following statement from President and CEO Dawn Sweeney regarding the nation's financial crisis: "On behalf of the restaurant industry's 13.1 million employees in almost one million locations nationwide, we thank Congress and the Administration for their quick action to stabilize the U.S. financial system. Today, a majority of the House of Representatives took a courageous and difficult vote to right the nation's economic ship, building on the Senate's work earlier this week. These bipartisan votes were essential to the nation's economic health, and no less for the restaurant industry".
FYI Candidates
Preparing for Sudden Job Loss
Six Ways Managers Can Recession-Proof Their Job Search
Are you searching for a new job and are not sure whether the ones to which you are applying or
considering are a match for you? Or, are you currently working for a company, but unsure of
whether your decision to take or stay in the position is the right one?
Executive Movements
SHIRLENE LOPEZ will step down as president and chief operating officer of DEL TACO by Nov. 17, which marks her 30th anniversary with the quick-service chain. NICK SHEPHERD, chairman and chief executive of Del Taco's parent, SAGITTARIUS BRANDS, will assume Lopez' duties.
The 39-unit RED MANGO frozen-yogurt chain has named MARK ARCHER chief financial officer. He previously was chief financial and administrative officer at Allied Cash Holdings, where he raised more than $72 million in capital to fund store growth.
Franchisor BASKIN-ROBBINS has expanded the duties of director of marketing and consumer insights CARLOS NUNEZ, naming him to lead U.S. Hispanic marketing efforts. Before joining B-R in January, Nunez was Burger King's director of marketing for the Latin America/Caribbean region.
CORNER BAKERY CAFE has added three people to its executive team, including Taco Bueno veteran RICHARD PEABODY as chief financial officer. In addition to the company’s finances, he will oversee the 100-unit chain’s information technology initiatives, Corner Bakery said.
Financial Overview
Wingstop Soars with 21 Consecutive Quarters of Comp Store Sales Increases. The successive increase for the third quarter of 2008 was 6.4 percent, and the first three quarters combined is up 7.4 percent over the same period last year.
DARDEN RESTAURANTS INC. on Tuesday reported a shortfall in its forecast first-quarter sales and earnings, citing weaker-than-anticipated economic and consumer dynamics. The operator of more than 1,700 casual-dining restaurants said net profit for the quarter ended Aug. 24 fell 22.5 percent from a year earlier as sales slowed at its Red Lobster and LongHorn Steakhouse chains.
Shares of CHIPOTLE MEXICAN GRILL INC. plummeted Friday as the company warned that its earnings would fall short in the third quarter on slow sales and escalating food costs. The operator of more than 775 burrito specialty fast-casual restaurants said it would likely raise menu prices in the fourth quarter.