Despite a recent rumble over ribs, Applebee's
Applebee's success flies in the face of recent slowdowns in other casual dining chains, such as Outback Steakhouse
The company reported second-quarter net earnings of $28.2 million, or $0.34 per share, which included the $2.3 million charge that decreased earnings by $0.02 per share (see again the rumble over ribs). Second-quarter same-store sales increased 6.3%, while total operating revenues increased 12.4%.
It's all pretty much status quo, seeing how Applebee's didn't see fit to change its forward outlook. One can imagine that its recent menu innovations featuring Weight Watchers
Another thing to ponder for the short term is the monthly report from Smith Barney that just came out, citing falling wait times at lots of popular casual dining chains. It might make one wonder whether this summer's high gas prices have cut into consumers' pocketbooks, driving some to cheaper fare such as McDonald's
For now, despite a little bit of rib-induced food coma, there doesn't seem to be a fly in Applebee's soup even while competitors such as Outback show some signs of anemic times. However, in the short term, anyway, there's a mixed menu of trends, some of which could work in the company's favor.
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Alyce Lomax does not own shares of any of the companies mentioned.