Restaurant Finance Across America
Archived postings from July, 2009...
Applebee's Sales Still Soft
Posted: Wed, July 29, 2009 at 11:21am (CDT)
Not exactly solid. Applebee\'s same-store sales decreased 4.3% for the second quarter 2009 compared to the same quarter last year. The company also announced that it is unlikely that a refranchising transaction will close before year-end.
Yahoo Finance July 28, 2009
Counter-Argument: A CIT Bankruptcy Would Have Little Effect on the Restaurant Business
Posted: Sat, July 18, 2009 at 1:42pm (CDT)
A recent Reuter\'s headline blares \"CIT failure would chill US restaurant operators.\" The headline is inaccurate. CIT has been out of franchise SBA lending since late last year. Large national SBA lenders including CIT exited the market last year when they could no longer sell their loans in the secondary market. CIT\'s corporate finance group has specialized in a few asset-based transactions in the restaurant business after having just formed the unit in 2008. They focus on franchisors, franchisees and independent chains with EBITDA greater than $7 million, as well as private equity firms involved in leverage buyouts. The attached New York Times article provides an accurate summary of the impact of CIT\'s troubles on various industries.
New York Times July 18, 2009
How will the restaurant business fare as Obama reshapes the US economy?
Posted: Sat, July 11, 2009 at 8:50pm (CDT)
Lawrence Summers, head of the National Economic Council sees the future of the American economy as more export oriented and less consumption oriented, more environmentally oriented and less energy production oriented, more bio and software and civil engineering oriented and less financial engineering oriented, and finally more middle-class oriented and less oriented to income growth that is disproportionate towards a very small share of the population. Sounds like Western Europe.
Financial Times July 10, 2009