Financial News--AFC Enterprises, Advantica, McDonald's, Nathan's Famous, Panera Bread, Pet Valu, Rubio's
Chicago-AFC Enterprises Inc., parent company ofChurch's Chicken, Cinnabon, Popeye's Chicken & Biscuitsand Seattle's Best Coffee, announced that second-quarterearnings rose on strong franchise revenues and lower interestexpenses. The franchisor reported net income of $9 million, up from$5.8 million a year ago.
Franchise-related revenue, including fees from the sale of 37company-owned units to franchisees, helped boost operating earningsand margins in the second quarter, AFC said.-Reuters
Spartanburg, South Carolina-Advantica Restaurant GroupInc., owner of the Carrows, Coco's and Denny's restaurantbrands, reported systemwide sales increases of approximately 4percent to $578 million for the second quarter, compared with $557million in 2000. -Advantica Restaurant Group
Oak Brook, Illinois-McDonald's Corp., reporting a16-percent earnings drop that marked its third straight quarter ofdecreased profits, said it could shutter 250 underperformingrestaurants in "emerging markets."
In commenting on the second-quarter results in a conference callwith analysts, the industry's biggest chain was unspecificabout the locations of the 250 units potentially earmarked forclosure. One analyst reported that most of the shuttered storescould be in economically troubled countries in Latin America,Eastern Europe and the Asia/Pacific region. -Nation'sRestaurant News
Westbury, New York-Nathan's Famous Inc. reported thatearnings before taxes for the quarter ended June 24 increased by 36percent to $1,713,000 as compared to $1,251,000 for the quarterended June 25, 2000. -Business Wire
St. Louis-Panera Bread Co. reported that systemwide salesincreased 3.3 percent for the four weeks ending July 14. For the 12weeks ending July 14, systemwide comparable store sales increased5.7 percent. Sales at franchised units rose 3 percent in thefour-week period and 5.6 percent in the 12-week period.-PR Newswire
Markham, Ontario-Pet Valu Inc. announced its ninthconsecutive quarterly improvement in new income and cash flowcompared to prior year results. Net income improved by 60 percentto a loss of $200,000 for the quarter as compared to the secondquarter of fiscal 2000. Gross profits were impacted by fewerfranchise sales resulting in lower initial franchise fees.-Pet Valu Canada Inc.
Carlsbad, California-Rubio's Restaurants Inc. saidthat its second-quarter earnings rose 17 percent from a yearearlier, boosted by higher revenues and cost containment. Earningsrose to $798,000 from $701,000 a year earlier.-Reuters