DIN - I've actually been re-reading their 10-Q, because I'm thinking about going after that one pretty hard. Something just doesn't quite smell right, and I thought I might find it in the 10-Q. Of course everybody knows they had that $31M in one-time gains due to asset sales and debt extinguishment. (I was actually surprised to see how *little* debt they extinguished - they're still loaded up.)
What is intriguing to me is that RRGB comes out and says labor costs are an issue, at the same time DIN is citing favorable variances:
RRGB
finance.yahoo.com
Restaurant-level operating profit margins at company-owned restaurants were 17.7% in the fiscal first quarter of 2009 compared to 19.1% in the fiscal first quarter of 2008. Fiscal first quarter 2009 restaurant-level operating profit margins were negatively impacted by approximately 0.8% of higher food and beverage costs, a 0.7% increase in labor costs, including 0.3% related to the tender offer for stock options, and a 0.7% increase in occupancy costs, partially offset by 0.8% lower operating costs, largely driven by lower year-over-year contributions to the Company’s national advertising fund, which were 0.25% of restaurant revenue in the fiscal first quarter of 2009 versus 1.5% of revenue in 2008.
vs. DIN 10Q
yahoo.brand.edgar-online.com
Total food and beverage costs as a percentage of company restaurant sales decreased by 1.2% for the three months ended March 31, 2009 compared to the same period in 2008 due primarily to the impact of menu price increases, a favorable shift in menu mix and food cost improvement initiatives partially offset by slightly higher commodity costs.
Total labor costs as a percentage of company restaurant sales decreased by 1.8% for the three months ended March 31, 2009 compared to the same period in 2008. Labor expenses improved primarily due to the impact of menu price increases, more effective scheduling, better kitchen productivity, reduction of overtime and effective hourly wage rate management. In addition, labor costs benefited from a reduction in management incentive expense due to nonrecurring retention costs in 2008 and the revision of the bonus plan in the second quarter of 2008.
Direct and occupancy costs decreased as a percentage of company restaurant sales by 1.8% for the three months ended March 31, 2009 compared to the same period in 2008 due primarily to the timing of local advertising expenses and favorable straight-line rent adjustments and depreciation expense which resulted from purchase price allocations in 2008 related to the Applebee’s acquisition.
`BC |
