We begin with a story on everyone’s mind in the food industry: McDonald’s destroys analyst expectations on every front, and in their earnings call reveals some interesting suggestions about what might be next for the QSR giant. We connect last month’s story about egg prices to Cal-Maine’s lackluster earnings, hop over to Chipotle’s earnings call, and finish with an update on the Kroger-Lidl legal proceedings.
We first glance into how Subway’s store refresh program—including kiosks—may affect franchisees as they debate whether or not to make the immediate splash into a store redesign. Additionally, it was an up and down Tuesday for Chipotle, who saw negative headlines thanks to norovirus but has the momentum of queso on their side. We close by discussing a massive hot dog recall and potential looming financial woes at Bravo Brio.
After Pepsico’s earnings release this week, it becomes apparent that diversification is the key to the company’s modest growth, even if management doesn’t buy into the anti-sugar trend among consumers. We also discuss new plans for re-expansion at an original fast-casual burger chain, Maxwell House’s efforts to attract millennials, and more acquisition for Campbell Soup.
McCormick releases their second quarter earnings and beats on profit—we take a look at how aggressive acquisitions by the company has them positioned for further growth. The Brewers Association releases a new seal for exclusive use by craft breweries, and Southeastern U.S. peach growers see dramatic crop reductions—we discuss industry impacts (or potential lack thereof) of both.
As Darden once again surpasses Wall Street expectations, we look to their earnings call and J.P. Morgan research as to reasons for their continued success. Additionally, General Mills shows signs of weakness, particularly in organics and yogurt, while competitor Kellogg’s teams up with fast-casual Southwestern eatery Moe’s for a new line of pre-packaged breakfast bowls.
We lead off the show by dissecting the newly public Blue Apron financials in advance of their desired IPO, and talk about their ability to hold off both other startups in their space and brick-and-mortar imitators. After discussing Bob Evans’ earnings, we jump into the MillerCoors rollout of Zima, and why it might be a bad idea to structure the return of the drink as an LTO.
Where we discussed an increasingly crowded fast-casual burger space last week, we discuss the race to be the “Chipotle of pizza” this week, as Oath Craft Pizza secures funding to grow on the East Coast. We explore differentiators there and at Del Taco, and their new CEO presented their plans to continue QSR+ dominance. Finally, we look into J.M. Smucker earnings and another city’s recently-passed soda tax.
In a fast-casual landscape that already features its share of upscale burger joints, BurgerFi seeks to squeeze into the little remaining white space with new franchisee agreements. We take a deep dive into egg prices, and how continued low price points for the staple impacts grocers and restaurants. Additionally, we discuss a tuna-related food safety issue, more Buffalo Wild Wings, and Kelly Investment Group’s potential deal to buy struggling Joe’s Crab Shack.
We begin the show by discussing Nutella—not because of serving size debates, but because their new concept restaurant in Chicago opened this week. We take a look at industry specials and promotions for Memorial Day before turning our focus to Colorado, who celebrated the six-month anniversary of a new retail liquor law and whose fast-casual chain Smashburger adds another protein option.
After a Pentallect report emerged showing independent restaurant operators scoring vastly higher in many consumer sentiment categories in comparison to their chain restaurant peers, we discuss what chain operators can do to counter this trend. Additionally, Cracker Barrel seeks to open more units on the West Coast, Golden Corral rolls out brunch, and trends at the Sweets & Snacks Expo.