Saturday, March 17, 2012

Final Glance: Restaurant companies Stock Prices

 March 16, 2012 NEW YORK — Shares of some top restaurant companies were mixed at the close of trading:

Brinker International Inc. fell $.27 or .9 percent, to $28.71.

Chipotle Mexican Grill Inc. rose $3.83 or .9 percent, to $410.91.

Darden Restaurants Inc. fell $.52 or 1.0 percent, to $52.51.

Domino's Pizza Inc. fell $.13 or .3 percent, to $39.96.

McDonald's Corp. fell $.38 or .4 percent, to $97.66.

Panera fell $3.28 or 2.0 percent, to $161.43.

Papa John's International Inc. rose $.10 or .3 percent, to $37.16.

Starbucks Corp. rose $.14 or .3 percent, to $53.21.

Wendy's Company rose $.13 or 2.6 percent, to $5.04.

Yum Brands Inc. fell $.22 or .3 percent, to $68.40.

Did you notice that Chipotle Mexican Grill's stock is almost worth more than all the other restaurant companies combined? I know it's the advertising right? Well, the company spends almost nothing on advertising—just $6 million nationwide in 2011 compared to $650 million spent by McDonald's alone.

We now have scientific proof that the best and most recognizable brands aren’t built through advertising or promotional campaigns alone, but rather through all of the ways people experience the brand. Chipotle's "Food with Integrity" brand has connected with like-minded people who seek great-tasting food fast without having to eat low-quality traditional fast food.

Chipotle's vision is to "change the way people think and eat fast food. They do this by avoiding a formulaic approach when creating their restaurant experience and looking to fine-dining restaurants for inspiration. This should be an inspiration to all locally owned and operated restaurants that use high-quality raw ingredients, classic cooking methods, distinctive interior design, and have friendly people to serve customers.

In fact, the only difference I can see between most locally owned and operated restaurants and Chipotle is the speed of service. Many locally owned restaurants tend to fall short when it comes to making the dining experience fast and convenient for customers who don't always have time for a sit down dining experience. Can you spell "OPPORTUNITY"?


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