Fitch U.S. Restaurant Outlook: Better Food & Better Service.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Favorable demographic trends will continue to drive growth for the U.S. restaurant industry in 2005, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Overall 'food-away-from-home' expenditures have been rising due, in part, to increasing disposable income disposable income Portion of an individual's income over which the recipient has complete discretion. To assess disposable income, it is necessary to determine total income, including not only wages and salaries, interest and dividend payments, and business profits, but also , the shrinking size of U.S. households, and the general aging of the population. These trends will continue to benefit the restaurant industry over the next 10 to 20 years. During the first three quarters of 2004, restaurant profit margins declined across-the-board due to high commodity costs. Sales at quick service restaurants (QSRs) rebounded in 2004 as these chains emphasized quality and service over discounted prices. However, Fitch believes that long-term sales growth in the casual dining segment will outpace QSRs since the QSR QSR Quick Service Restaurant QSR QoS (Quality of Service) Satisfaction Rate QSR Quality System Regulations QSR Quality Status Report QSR Quality System Review QSR Quarterly Status Report QSR Quality System Requirement segment is more mature, and consumer trends are more favorable for the casual dining restaurant format. Higher gasoline prices did not appear to affect the profit margins of most restaurant chains The following is a list of restaurant chains. See also: Fast-food restaurant, Casual dining, List of reference tables. International
High commodity costs are universally affecting profit margins of most restaurant chains, with McDonald's being the exception. To a limited extent, restaurants are able to hedge against higher commodity prices through longer term supplier contracts and menu changes that substitute lower cost food items. However, the broad range of commodities such as chicken, beef, and dairy affected by price increases in 2004 has limited restaurants' ability to contain costs through menu changes. The full report 'U.S. Restaurant Outlook: Better Food & Service Equal Better Sales' provides details for each commodity segment, as well as a discussion of same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. in 2004 and an analysis of key demographic trends. The report can be found at 'www.fitchratings.com' under the '2005 Outlooks' tab. |
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