How Does Your Restaurant Compare? Q1 2016 Benchmarking Update

Each quarter, we take a look at the operating results of publicly traded restaurant companies and compile useful insights on their performance and the economic factors affecting the industry. Continue reading for timely benchmarking information for the first quarter of 2016.

The industry started off the year struggling to maintain flat-to-positive same-store sales across all segments. Menu price increases helped buoy same-store sales growth at many companies with little to no improvement in traffic. The pizza and quick-serve segments exhibited the strongest same-store sales growth, with 2.7 and 2.8 percent increases, respectively. The fast-casual segment continued to grow; however, this quarter, its same-store sales rose by a mere 0.4 percent, primarily as a result of Chipotle Mexican Grill’s 29.7 percent decline.

Meanwhile, labor costs rose across the board, largely due to a competitive labor market, minimum wage increases and costs related to the Affordable Care Act. On a positive note, commodity prices continued to decline.

Wondering how to benchmark a private company against the report? We've found that on average, when compared to public companies, medium-sized private companies’ prime costs were one to two percent higher. However, the best performing private company participants—those in the highest quartile—had prime costs three percent lower than the average public company.

For a more complete view of Q1 and to see our predictions for the year ahead, view and download the full report here. And be sure to follow @BDORestaurant to stay up-to-date with the Restaurant Practice’s latest insights.