By Tess Stynes
U.S. restaurant companies are expected to record a combined
same-store sales increase of 2.8% for the third quarter, with
growth slowing from both the second quarter and the year-earlier
period, according to data from Thomson Reuters Corp.
Based on conference call transcripts, Thomson Reuters said a
number of restaurants have been warning investors about impacts
from a drought in the Midwest that has been adding to cost
pressures in the sector.
The latest same-store sales estimates compare with a
second-quarter same-store sales increase of 3.8%. Same-store-sales
growth was pegged at 2.9% a year earlier.
The quick-service sector appears strongest for the third
quarter, with growth estimated at 3.4%, though that is down from a
4.3% rise a year earlier. Chipotle Mexican Grill Inc. (CMG) and
Panera Bread Co. (PNRA) have the highest estimates, both at 5.4%
growth, though that is lower than year-earlier results.
Forecasts for the overall industry and the quick-service segment
both are higher excluding McDonald's Corp. (MCD) with growth of
3.1% and 4.2% for the current period.
The casual-dining segment lags behind with same-store growth of
1% expected, compared with 1.2% a year earlier. The most impressive
growth is expected at Buffalo Wild Wings Inc. (BWLD) and Texas
Roadhouse Inc. (TXRH), with increases of 6% and 4%,
respectively.
Excluding Darden Restaurants Inc. (DRI), casual segment
same-store growth is seen at 1.8%, compared with 0.4%.
Thomson Reuters cited StarMine analyst data that indicate
Cracker Barrel Old Country Store Inc. (CBRL) has the highest
earnings sensitivity to commodity price increases.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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