Insights Journal: Marketing Spend Analysis; Retail Sales Pop in March; Chick-fil-A Continues to Amaze; Executive Summaries for Jack & Chili’s.
Hopefully the trough of a shocking Black Swan event, 2Q20 gave us an average comp decline of -15.4% for 23 $1B+ chains under coverage. Notably, there was a very wide dispersion of results with a comp high of +32% (Wingstop) all the way to a low of -59% (IHOP) as consumers decidedly shifted away from dine-in to low-contact off-premise solutions.
In a shocking Black Swan event, the industry suffered the forced closing of all dining rooms in late March 2020. While this shock was less troublesome to concepts already heavily oriented towards drive-thru and off-premise, the devastation for sit-down oriented chains has been previously unimaginable.
This issue of the RR Insights Journal includes: Franchise Finance Perspectives – a compilation of answers to topical questions; Quantifind’s coronovirus social media chatter tracking; executive summaries for Chili’s, Jack in the Box & Jimmy John’s reports.
Chili’s is the 4th largest casual player by domestic sales (behind Olive Garden, Applebee’s & Buffalo Wild Wings) and is positioned as a great place to hang-out with family & friends by offering good value, bold food innovation, and a great bar atmosphere to go with a convenient off-premise digital order platform. This overlays Chili’s historical core brand equity as a sit-down Southwest (Tex-Mex) chain that specializes in burgers, ribs, sizzling fajitas & margaritas.
Key Points from 4Q19 results through 2/7/20.