Restaurant results improve, headwinds remain

Mayo 02, 2010
While another batch of first-quarter results from public restaurant companies offered some signs of an industry turnaround, executives cautioned that obstacles remain on the road to recovery.Improved guest traffic and sales trends were reported last week by P.F. Chang's China Bistro Inc., Famous Dave's of America Inc., Ruth's Hospitality Inc. and Panera Bread Co., which followed similar results a week earlier from Chipotle Mexican Grill Inc., McDonald's Corp. and Brinker International Inc.

Not all reports were positive, however. Burger King Holdings Inc. blamed severe winter snow storms for much of a 6.1-percent dive in its chain’s U.S. same-store sales, though it noted that its check average and traffic had improved by the end of the quarter. Still, chairman and chief executive John Chidsey warned that the nation's high unemployment would continue to be a major challenge.

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