Competitor News

McDonald’s Corp. reported Q4 earnings showing modest US results on Wednesday of this week with SSS +2.3% but traffic down 2.2%. Although average ticket was positive at +4.5%, one of the largest ticket gains in recent history, US traffic remains weak, especially compared to other international lead markets. Breakfast also is still weak – the…

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Competitor News

Starbucks reported strong Q1 earnings yesterday and advised that global comparable store sales were up 4.0% during the quarter with ticket/pricing adding 3 points to growth. Americas SSS were reported at +4% vs. a projected 3.2%. Globally, the company claimed 541 net stores during Q1 accounting for a 7% growth year over year to a…

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Competitor News

Starbucks announced this week that it was changing course relative to its upscale Reserve Roasteries and Reserve coffee bars, redirecting its focus on traditional outlets. Under former CEO Howard Schultz, the company had planned to open as many as 1,000 new Reserve coffee bars, but current CEO Kevin Johnson has scrubbed those plans for the…

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Competitor News

Speaking of Starbucks, the company held its investor conference this week and clearly struck a confident tone, with major international growth planned especially in China (projecting 6,000 stores across 250 cities) and a domestic focus on growth in the Midwest. The company also announced a new partnership arrangement with Uber Eats in order to expand…

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Miscellaneous

We noted a number of surveys released over the past week that we thought you might have some interest in. First off, online used equipment dealer Bid-On-Equipment conducted a Google search study of the most popular fast food franchises to open across the country and released its results earlier this month. Based on Google search…

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Competitor News

Coming just a week plus after announcement of its Q4 earnings (Global SSS +3%, US +4%), Starbucks laid off as many as 350 corporate employees, approximately 5% of its total corporate workforce. The company’s progressive corporate reputation notwithstanding, one employee complained about the one hour notice she received to turn in all company equipment and…

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Miscellaneous

Starbucks (SBUX) was finally able to post an improved showing in Q4 results announced Thursday, with US same store sales up plus 4%, ticket up plus 5% and traffic only minus 1%. However, analysts were wary of them attaining their long term 3-5% comps guidance. Starbucks began its Christmas season in store retail and digital…

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Competitor News

The Ninth Circuit Court of Appeals officially revived a case regarding a Starbucks corporate policy that requires an employee to clock out before uploading data about employees’ hours, sales, and other information. The federal case follows a separate state Supreme Court ruling earlier this year that determined that Starbucks must pay workers for the off-the-clock…

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Competitor News

The tong war between Tim Horton’s and its own franchisees continued in a big way this past week with the RBI-owned brand moving against a franchisee in Cape Bretton and stripping the franchise owner of his 4 franchises. The franchisor claimed that franchisee David Hughes, who also happens to serve as the head of the…

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