Industry Data Report

Transcription

1 Industry Data Report ing Report Highlights data and analysis on 50+ national chains, including: (1) remodel progress/system condition; (2) program scope; (3) investment costs; (4) remodel sales increases; (5) estimated return on investment/payback period; and (6) franchisor remodel incentives. Conclusion The industry's % of system at current image has started to accelerate in 2016 after hitting a 5-year low in Major remodels appear to be paying off slightly better than minor remodels, suggesting a higher level of investment is needed to keep-up with the competition. Table of Contents Pages Chain Progress Summary 2-3 Chain ROI Ranking 4 Comparison by Segment Average Costs 5 Incremental Lift 6 Year 1 Return on Investment 7-8 Payback Period 9 Overview by Chain Casual Fast Casual Family Pizza Chicken Sub-Sandwich Coffee/Bakery 19 Sandwich Data in spreadsheet form available at Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of 1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2017 Restaurant Research LLC. All rights reserved.

2 IDR: ing 2017 Source: RR Estimates Page 2

3 Percent of System at Current Image IDR: ing 2017 Source: RR Estimates Page 3

4 (*) Return on investment (ROI) = (year 1 % sales lift * AUV * estimated incremental cash flow-thru margin)/cash remodel investment. IDR: ing 2017 Source: RR Estimates Page 4

5 Comparison by Segment Average Costs Classification Overview Scope of Work Frequency (in Years) Refresher Minor Major Scrape & Rebuild IDR: ing 2017 Source: RR Estimates Page 5

6 Incremental Lift IDR: ing 2017 Source: RR Estimates Page 6

7 Year 1 Return on Investment Return on investment (ROI) = (year 1 % sales lift x AUV x estimated incremental cash flow-thru margin)/cash remodel investment. Estimated incremental cash flow-thru margin (= 2x concept EBITDAR margin) reflects the benefit of sales leverage given a restaurant's significant level of fixed costs. IDR: ing 2017 Source: RR Estimates Page 7

8 After-Tax Implications on ROI IDR: ing 2017 Source: RR Estimates Page 8

9 Payback Period Payback period = # of years to recoup remodel investment. IDR: ing 2017 Source: RR Estimates Page 9

10 Program Description Incentives Applebee's Buffalo Wild Wings Cheesecake Factory Chili's Grill & Bar LongHorn

11 Program Description Incentives Olive Garden Outback Red Lobster Red Robin Ruby Tuesday

12 Program Description Incentives T.G.I. Friday's Texas Roadhouse Casual Corner Bakery Café

13 Program Description Incentives Moe's Southwest Grill Panera Bread Qdoba Fast Casual Bob Evans Cracker Barrel

14 Program Description Incentives Denny's Golden Corral IHOP

15 Program Description Incentives Perkins Family Domino's Little Caesar's Papa John's

16 Program Description Incentives Pizza Hut Pizza Bojangles' Church's

17 Program Description Incentives KFC Popeyes Chicken Firehouse Subs

18 Program Description Incentives Jersey Mike's Jimmy John's Quizno's Subway Sub-Sandwich

19 Program Description Incentives Dunkin Donuts Krispy Kreme Tim Horton's Starbucks Coffee/ Bakery

20 Program Description Incentives Arby's Burger King

21 Program Description Incentives Carl's Jr. Chick-fil-A Culver's Dairy Queen

22 Program Description Incentives Five Guys Hardee's Jack in the Box

23 Program Description Incentives McDonald's Sonic Drive-In

24 Program Description Incentives Taco Bell Wendy's Whataburger

25 Program Description Incentives Zaxby's Sandwich Total QSR Total FSR Grand Total (1) Year 1 sales lift reflects the above market increase relative to non-remodeled stores. (2) Estimated incremental cash flow-thru margin is based on store level EBITDAR * 2 (to reflect the benefit of sales leverage over a store's fixed costs). (3) Return on investment equals (Year 1 % Lift * AUV * Estimated Incremental Cash Flow-thru Margin)/Cash Investment.

26 Visit or contact us at (860) or Ask us about custom research projects Ask to be added to complimentary RR Thermometer distribution list Copyright: This Restaurant Research LLC document is copyrighted material. Copyright 2017 Restaurant Research LLC. All rights reserved. Disclosure: Restaurant Research LLC often sells report subscriptions to concepts under our coverage. Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research LLC believes to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without notice and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. Restaurant Research s analyses and opinions are not a guarantee of the future performance of any company or individual franchisee. RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this report available, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to provide an overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound business judgment.