Texas Roadhouse stock dropped this week...beef/commodity prices higher than forecast.
For 2026, they're forecasting even higher - 7%.
Will be curious to see how this affects the location prices and shopping program.

In other news, several companies are rolling out robotics to prepare salads, sauces, stir fries on demand. Customer will punch buttons showing what they want and robotics will prepare and deliver.
Company heads say that saving on labor costs will help them hold the line on commodity costs.
Interviewers note robots don't expect to be tipped....lol.

I still don't know how we moved from a tip jar for counter service to adding tips to the screen. Oh wait, I do know the answer lol....I'm getting so old, I thought you'd tip based on service after actually receiving the service lol.

Since domestic beef producers can't or won't produce enough to keep prices down, beef imports from Argentina should provide some relief.

I am with you on tipping. I am generous to good SERVERS, but do not tip someone for handing me a paper sack.

maybe - I assume TXRH has a crack team assigned to the sourcing side of their business.

Denny's:

New York
—
Denny’s, the struggling, 72-year-old diner chain, is selling itself to a group of investors who are taking the business private.

The company announced Monday that it’s sold itself to TriArtisan Capital Advisors, a private equity firm that also owns P.F. Chang’s, and Yadav Enterprises, a major Denny’s franchisee, in a $322 million deal (excluding its substantial debt load).

Denny’s board approved the deal. If accepted by shareholders, Denny’s stock will be delisted from the Nasdaq, ending a nearly six-decade run on the public stock market.

Shares jumped 50% in early trading Tuesday. Prior to Tuesday, the stock had lost about a third of its value this year.

Denny’s had reached out to more than 40 potential buyers and received multiple offers, but decided that this transaction “maximizes value and has determined it is fair to and in the best interests of stockholders and represents the best path forward for the company,” CEO Kelli Valade said in a statement.

Denny’s recent struggles began during the pandemic. One of its main selling points was being open 24/7. However, that requirement temporarily ended during the height of pandemic. Since 2021, about a quarter of its roughly 1,600 restaurants have not returned to those around-the-clock hours, so Denny’s eased up on the requirement for a franchise to do so.

It’s also facing competition for cash-strapped customers from rapidly growing chains like First Watch, fast food competitors or people opting to eat at home in a bid to save money.

Denny’s also announced 180 closures over the last two years, with the chain attempting a turnaround plan that involves remodels and new menu items to jumpstart traffic.

Sales at locations open at least a year declined 2.9% in the most recent quarter and it only completed 10 remodels, Denny’s also reported late Monday.

Pizza Hut for sale?

On Tuesday, Yum! Brands announced it launched a “formal review of strategic options” for Pizza Hut, including a possible sale for the chain that was once owned by PepsiCo.

“The Pizza Hut team has been working hard to address business and category challenges; however, Pizza Hut’s performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside of Yum! Brands,” said Chris Turner, CEO of Yum! Brands, in a press release.

The chain has struggled against Domino’s, which recently reported another strong quarter of sales, and Papa John’s. Pizza Hut, meanwhile, has struggled for the past several quarters and is attempting to juice sales with new value-driven menu items that haven’t taken hold.

The parent company didn’t set a deadline for the completion of the review and won’t comment further.

Yum! reported earnings Tuesday, with Pizza Hut recording a stunning 6% drop in same-store sales at its US restaurants opened at least a year.

Meanwhile, Yum’s other brands fared better. Taco Bell had another high-flying quarter with a 7% increase in US same-store sales and KFC is perhaps starting to experience a turnaround, posting a 2% rise for the quarter ending on September 30.

Steakhouse news:

New York
—
Outback Steakhouse’s parent company abruptly closed 21 restaurants in October as it begins a “comprehensive turnaround strategy” to keep up with its trendier competitors.

Bloomin’ Brands, Outback’s parent company, disclosed in its earnings report Thursday that in addition to those closures, an additional 22 locations across its three brands — which also includes Carrabba’s Italian Grill and Bonefish Grill — will not have their leases renewed and will shutter over the next four years.

A company spokesperson wouldn’t reveal how many Outback locations it specifically closed.

Outback has 670 US locations remaining, according to its website. That’s roughly 10% fewer than a decade ago, when it had about 750 locations.

Bloomin’ Brands also announced that it will take a $33 million impairment charge for the closures and suspended its shareholder dividend to help pay for the turnaround plan.

The company revealed more details in a call with analysts Thursday morning, saying it’s investing $75 million in the Outback turnaround plan over the next three years. Guests will soon see new menus highlighting the improved steaks the chain is selling. It is also increasing value offers and reducing the number of tables waiters serve from six to four to improve the dining experience.

“Outback Steakhouse has incredible brand equity,” said CEO Mike Spanos. “It is the pioneer of the casual steakhouse industry. We have strong brand awareness and a tremendous opportunity to convert that awareness into restaurant visits.”

All of its remaining restaurants will be renovated by the end of 2028. The redesign has brighter interiors with a newly designed bar and seats as well as smaller kitchens and expanded areas for pickup.

Outback has been struggling for the past two years and hasn’t posted same-store sales until this quarter, when sales rose a meager 0.4%.

Meanwhile, Darden-owned LongHorn Steakhouse posted a 5.5% rise and Texas Roadhouse generate a 5.8% jump in sales in their most recent earnings reports.

Diners are becoming choosier with their dollars when going out, and are not spending money at chains that they don’t perceive as good value. That’s helped Outback’s rivals, which serve heaping portions; and other chains, like Chili’s and Applebee’s that are focused on value and deals.

Bloomin’ Brands (BLMN) stock has lost 40% of its value since the beginning of the year.

New York
—
Wendy’s is set to close hundreds of locations across the United States as part of its turnaround plan.

Interim CEO Ken Cook announced Friday that a “mid single-digit percentage” of Wendy’s approximately 6,000 US locations could close, which would amount to around 200 to 350 restaurants.

Affected locations are those that are “consistently underperforming” and dragging down the chain’s overall performance, Cook told analysts. The closures will begin this year and continue through 2026.

“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” he said. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”

A specific list of locations wasn’t announced.

This string of closures comes a year after Wendy’s announced the shuttering of 140 locations, citing similar underperformance issues.

Wendy’s could use a jolt after reporting another downbeat quarter. US same-store sales declined 4.7%, while rivals McDonald’s, Burger King and Shake Shack all posted positive earnings as customers gravitated toward their deals and marketing efforts.

Despite the decline, Cook revealed that it’s seeing positive results from its newly released chicken tenders, called “Tendys.” Demand was so strong that some restaurants sold out even before advertising began.

“We’re looking forward to continuing that momentum, and this is an encouraging first step as we look to reestablish our leadership position in chicken,” he said.

Something interesting in the news today:

[www.whitehouse.gov]

I read a lot about people asking to have beef labelled with the country of orgin. I have to wonder how much of our meat costs are from the meat packing industry and also the location of the source.

I wonder if/how Food Safety guidelines will be altered with robotics preparing food? I am serious. And someone would have to get supplies ready and put in place for the action to start. Who knows if that person would be less inclined or not to follow safe food handling procedures before placing same where the robotics were to start their shift.

not sure how it all is going to work in actuality, but in theory, they will probably have one part of the big robot machine that will release hot water and soap and scrub the surfaces.
I did see them mention that a human will need to load in the food supplies, put them in place so the robots can chop and prepare....there is one called robochef.

@jgardn02 wrote:

Since domestic beef producers can't or won't produce enough to keep prices down, beef imports from Argentina should provide some relief.
.

The problem is not the producers but the cartel of the 4 packing companies that control the majority of the production and the law that prohibits small producers from selling directly to other producers, or the public. The administration is trying to change it but lobbyists with big 4 are working congress hard. Two of these companies are owned by Brazil and China.

So, the 4 families control the meat packing companies?

"I need, Don Corleone, those politicians that you carry in your pocket like so many nickels and dimes."