How Does Your Restaurant Compare? Q2-14 Benchmarking Update

We compiled the operating results of publicly traded restaurant companies to provide you with timely benchmarking information. Our past benchmarking surveys of medium-sized private companies indicated, on average, their prime costs were higher than public companies by 1–2 percent. However, high-quartile participants (best performing) in our surveys had prime costs 3 percent lower than the average public company.

Cost of sales includes food and beverage for all segments. Quick serve and fast casual segments also include packaging costs. Labor costs include restaurant-level wages, payroll taxes, and benefits.

Many concepts showed same-store sales growth during Q2; however, year-to-date results remained moderate for most segments due to poor results from the bad weather most experienced in Q1. The pizza segment continues to steal the market share with a 3.2 percent increase through Q2—led by Papa John’s, which experienced 9.5 percent growth. Fast casual continues to post strong results with Chipotle and Qdoba experiencing year-to-date increases of 15.5 percent and 7.2 percent, respectively.

The highly competitive pizza segment experienced an increase in cost of sales due to the rising costs of cheese and proteins while cost of sales for other segments stayed consistent as companies are continuing to adjusted menu prices to combat against increases in commodities. Commodities have seen significant increases year-to-date with pork increasing 28.2 percent caused by the swine virus and beef increasing 20.2 percent caused by a decline in the cattle inventory resulting from continued droughts. The USDA forecasts continued price inflation into 2015.

Q2 - 2014 Benchmarking Report