5 Big Takeaways From Restaurant Earnings Season
Photo Credit: A new pick-up area at a Chipotle. Off-premise dining was big for the burrito slinger this quarter, as it was at other restaurants. Chipotle
Skift Take
Brands are being pulled in all directions but there are consistent messages coming out of earnings season, both in terms of shortcomings and triumphs.
One by one, restaurant chains have served up quarterly earnings to investors over the past month.
The conclusion: companies are betting big on delivery, simpler menus, and store redesigns to boost sales. Meanwhile, some just continue to fight with franchisees and nag about higher labor costs. These are the key takeaways from a busy restaurants earnings season.
Franchisees Rebel Against Brands
Emphasized by: Jack in the Box, Papa John’s, and McDonald’s
Skift Take: It’s a mess. But McDonald’s arguably has the easiest path to rectifying its relationship with storeowners.
Fresh off company earnings Monday, Jack in the Box was hit with a complaint submitted by its franchisee association to the California Department of Business Oversight. In it, owners cited an Oct. 8 letter from the brand asking independent landlords to transfer their lease agreements from Jack in the Box Inc. into a newly formed subsidiary, Jack in the Box Properties LLC, Nation’s Restaurant News reported.
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