There always seems to be restaurant news on the menu. As I do every week, let's take a look at some of this week's more appetizing stories.
1. My Facebook friend Bob
No good trend in the restaurant industry goes uncopied. Take the breakfast burrito, for instance. Bob Evans (Nasdaq: BOBE ) was once a holdout, but now it's rolling out the BOBurrito, complete with a namesake website and Facebook page.
I don't suspect the comfort-food spends a lot of time on social networks, but the online effort is a way for Bob Evans to cheaply reach a younger audience. The Meat Lover and Western burritos will supposedly only be available during the winter, but you can bet that they'll stick around if they're popular.
2. Denny's dodgers
Value-minded fast food chains are holding up well in this environment, but the same can't be said for bargain-priced casual dining. Denny's (Nasdaq: DENN ) posted a steep 6.1% decline in systemwide comps during the fourth quarter. Guest counts fell even harder, since higher average check prices are baked into the comps.
Denny's is certainly trying, especially as it angles for the takeout breakfast rush with its innovative insulated containers. However, it just can't seem to compete with McDonald's (NYSE: MCD ) in the battle for commuters' hearts, minds, and stomachs.
3. Wendy's skips breakfast
You know who else can't run with the golden arches in the morning? Wendy's/Arby's Group (NYSE: WEN ) . I'm a fan of the Wendy's breakfast offerings, but apparently I'm alone in the drive-thru lane.
Wendy's will slash the number of restaurants serving breakfast, test a revamped menu in a few key markets like Phoenix and Pittsburgh, then aim for a national rollout in 2011.
A lot can change between now and then, but these retreats are credibility killers. Folks driving to work in the morning like consistency and predictability in their breakfast choices. The last thing they need to worry about is whether the Wendy's on the right side of the road is still serving breakfast.
4. Landry's lament
It's been a rough week for Landry's (NYSE: LNY ) shareholders. The stock cratered on Monday, after CEO Tilman Fertitta announced that he was abandoning his plans to take the company private. Three days later, the seafood-restaurant chain, which also holds interests in theme restaurants and casinos, revealed plans to offer $270 million in senior notes.
Landry's has taken the long way down. Shareholders thought they had an exit strategy when Fertitta presented a privatization offer to buy the entire company for $21 a share back in June. The price was taken down to a pride-swallowing $13.50 a share in October, before Fertitta walked out on the deal this week.
5. California dreaming
California Pizza Kitchen (Nasdaq: CPKI ) isn't as hot as its gourmet pies. The restaurateur posted a 7.2% slide in comps during the holiday quarter. It expects to post a profit of $0.08 a share to $0.10 a share, which should actually top its original guidance from November.
On a reported basis, CPK will report a loss on non-cash impairment charges. As refreshing as it is for the casual-dining concept to deliver an adjusted profit, it had better win back its patrons, or more impairment charges will likely follow.
6. Apps happen
Some iPhone apps last about as long as a Landry's privatization offer. Chipotle Mexican Grill (NYSE: CMG ) rolled out a mobile ordering application for burrito fans on the move this week, but then took it down a few hours later.
Gee, and you thought the serving line at your local Chipotle moved fast.
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