Restaurant companies releasing first-quarter results in the weeks ahead are expected to report improved sales trends, continued cost controls and a heightened sense that an industry recovery has begun, according to securities analysts.
While severe winter weather hurt sales trends at many chains in January and February, consumer spending increased in March, leaving many in the industry with a bit of spring fever. Companies including Brinker International, California Pizza Kitchen and Yum! Brands already have said first-quarter results were better than expected just months ago.
Analysts said they expect the majority of restaurant companies to beat earnings expectations for the first quarter and to increase corporate profit guidance for the remainder of 2010.
Companies reporting this week include McDonald’s Corp., Starbucks Corp., Chipotle Mexican Grill Inc., The Cheesecake Factory Inc., and BJ’s Restaurants Inc.
Companies scheduled to report next week include Buffalo Wild Wings Inc., Panera Bread Co., Kona Grill Inc., P.F. Chang's China Bistro Inc., and Burger King Holdings Inc.
