More Americans dining out, boosting restaurant earnings
By Meatingplace Editors on 10/22/2010
After rediscovering the joy of cooking during the recession, Americans are dining out again, bolstering sales for several restaurant operators that reported earnings this week.
Restaurant chains Chipotle Mexican Grill Inc., Cheesecake Factory Inc. and BJ’s Restaurants Inc. joined McDonald’s in reporting customer visits increased in the third quarter, boosting sales at stores open at least a year.
“We are experiencing increasing momentum in our business, with solidly positive guest traffic, expanding margins and strong earnings growth, Cheesecake Factory Chief Executive David Overton said. The company reported its third consecutive quarter of sales growth, driven primarily by growing guest traffic, he said.
McDonald’s in August attracted the most customers in 20 years, Chief Executive Jim Skinner said.
At midday on Friday, shares of Chipotle were up 14 percent at $204.87, while BJ’s stock rose about 15 percent to $33.10.
Chipotle reported same-store sales jumped 11.4 percent jump in the quarter, driven by increased customer traffic, helping the company achieve its first double-digit percentage gain in same-restaurant sales in two years and prompting it to raise its full-year outlook.
Rising guest traffic also helped BJ’s beat analysts’ earnings expectations for the quarter.
