Core Viewpoint - Darden Restaurants is closing 14 of the 28 Bahama Breeze locations in the US as part of a strategic review, with plans to convert the remaining sites to other brands within its portfolio [1][4]. Group 1: Closure Details - The closures will affect locations in several states, including Delaware, Georgia, Michigan, New Jersey, North Carolina, Virginia, and Florida, as well as sites in King of Prussia and Pittsburgh, Pennsylvania [2]. - The restaurants marked for closure are expected to continue operating until April 5, 2026 [2]. Group 2: Conversion Plans - Darden plans to convert the remaining 14 Bahama Breeze locations over the next 12 to 18 months, with temporary closures occurring as needed for the conversion work [3]. - The specific brands that will take over the converted sites have not yet been disclosed, but the company believes these locations will benefit several brands in its portfolio [3]. Group 3: Financial Impact and Support - Darden does not anticipate that the closures and conversions will have a material impact on its financial results [4]. - The company emphasizes its commitment to supporting team members, aiming to place as many as possible in roles within the Darden portfolio [4].

Yum China reported better-than-expected operating profit in the fourth quarter, defying a price war in the country’s food delivery market https://t.co/SeQfgbjtYX ...

Group 1 - Leading restaurant and beverage operators in China are increasing prices and scaling back subsidies on food delivery platforms, indicating an end to aggressive discounts and price wars [1][4] - Yum China Holdings-operated KFC raised its delivery prices by an average of 0.8 yuan ($0.12) last month [1] - Coffee chain Cotti has ended its "9.9 yuan a cup" promotion, with most delivery drinks now priced from 13.99 yuan and above [2] Group 2 - China's consumer market has experienced intense price competition as businesses lowered prices to attract cautious spenders in a weaker economic environment [3] - The subsidy campaigns among food delivery platforms began in April 2025, leading to unsustainable price levels, with some coffees sold for 14 cents and meals for 50 cents [3] - The recent price increases and reduction in incentives signal a shift away from the long-standing price battles affecting restaurants, teahouses, and cafés [4]

Core Insights - Chipotle Mexican Grill reported a slight decline in net income for Q4 2025, totaling $330.9 million compared to $331.8 million in Q4 2024 [1] - The company's comparable restaurant sales fell by 2.5% in the quarter, driven by a 3.2% drop in transactions [1] - Despite the decline in net income, fourth-quarter revenue grew by 4.9% year-on-year to $3 billion, primarily due to new restaurant openings and an increase in gift card breakage revenue [2] Financial Performance - Adjusted net income decreased to $331.3 million, or $0.25 per adjusted diluted share, from $340 million, or $0.25 per share, in Q4 2024 [1] - Operating margin narrowed to 14.1% from 14.6% year-on-year, while restaurant-level operating margin fell to 23.4% from 24.8% [2] - Diluted earnings per share rose to $0.25 from $0.24, marking a 4.2% increase year-on-year, while adjusted diluted EPS remained flat at $0.25 [3] Growth and Expansion - In Q4 2025, Chipotle opened 132 company-owned restaurants, including 97 with a Chipotlane drive-through, and seven international partner-operated locations [3] - For the full year 2025, total revenue reached $11.9 billion, up 5.4% year-on-year, with growth driven mainly by new restaurant openings rather than improvements at existing locations [4] - The company opened a total of 334 company-owned restaurants in 2025, including 257 with a Chipotlane [5] Future Outlook - Management expects comparable restaurant sales for 2026 to be roughly flat, following the decline experienced in 2025 [5] - The company projects 350 to 370 new restaurant openings in 2026, with 80% of new company-owned units expected to incorporate a Chipotlane [6]

Core Insights - Yum China reported a 3% increase in same-store sales and a 7% growth in system sales for the fourth quarter of 2025, with operating profit rising by 25% [1][5] - For the full year 2025, operating profit rose by 11%, and diluted EPS increased by 8%, or 14% when excluding mark-to-market and foreign exchange impacts [1][3] Fourth Quarter Highlights - Total revenues for the fourth quarter increased by 9% year-over-year to $2.8 billion, or a 7% increase excluding foreign exchange [5][7] - The company opened a record 587 net new stores in the fourth quarter, with 36% opened by franchisees [5][7] - Operating profit for the fourth quarter was $187 million, with an operating profit margin of 6.6%, an increase of 80 basis points year-over-year [5][7] Full Year Highlights - Total revenues for the full year reached $11.8 billion, a 4% increase year-over-year, also a 4% increase excluding foreign exchange [5][7] - The company opened 1,706 net new stores in 2025, with 31% opened by franchisees, bringing the total store count to 18,101 [5][7] - Operating profit for the full year was $1.3 billion, with an operating profit margin of 10.9%, up 60 basis points year-over-year [5][7] Capital Returns to Shareholders - Yum China plans to return $1.5 billion to shareholders in 2026, which includes a 21% increase in cash dividends to $0.29 per share [11][9] - In 2025, the company returned $1.5 billion to shareholders through $353 million in cash dividends and $1.14 billion in share repurchases [11][9] KFC Performance - KFC's system sales grew by 8% year-over-year, with same-store sales increasing by 3% [12][10] - Delivery sales for KFC grew by 34% year-over-year, contributing approximately 53% of total company sales [12][10] - Operating profit for KFC in the fourth quarter was $223 million, with an operating profit margin of 10.5%, an increase of 60 basis points year-over-year [12][10] Pizza Hut Performance - Pizza Hut's system sales grew by 6% year-over-year, with same-store sales increasing by 1% [18][13] - Delivery sales for Pizza Hut grew by 33% year-over-year, contributing approximately 54% of total company sales [18][13] - Operating profit for Pizza Hut in the fourth quarter was $20 million, with an operating profit margin of 3.7%, an increase of 110 basis points year-over-year [18][13] Future Outlook - The company targets to exceed 20,000 stores by 2026 and aims for more than 30,000 stores by 2030, utilizing an equity-and-franchise hybrid model [6][16] - Yum China remains committed to executing its RGM 3.0 strategy, focusing on innovation and operational efficiency [6][16]

Group 1 - The upcoming U.S. closures are part of a program called "Hut Forward," which includes marketing initiatives, technology modernization, and franchise agreements, aimed at long-term growth [3] - The closures will focus on underperforming U.S. stores, with approximately 32% of Pizza Hut's 19,872 stores located in the U.S., translating to about 6,360 locations [4] - Closing 250 units represents about 4% of the brand's U.S. system, comparable to Starbucks' recent closure of 400 units [5] Group 2 - Yum is conducting a strategic review of Pizza Hut, which may lead to a sale of the brand, with the review expected to be completed this year [5] - The company has incurred significant costs related to the review process, totaling $36 million in 2025, including $32 million in Q4 [6] - Pizza Hut's global store count decreased from 20,225 at the end of 2024 to 19,974 at the end of 2025, with many closures resulting from the termination of a franchising agreement in Turkey [7] Group 3 - Pizza Hut's U.S. same-store sales declined by 3% in Q4 and by 5% for the entire year, indicating ongoing challenges for the brand [8]

This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Fogo de Chão has launched an artificial intelligence voice assistant dubbed Selma to answer phone calls, the chain said in a press release. The technology is named after Selma Oliveira, Fogo’s chief culture officer, who the company described as its “matriarch” and one of “the most influential leaders behind the brand’s service philosophy.” Se ...

Chewy - Chewy is an e-commerce pet retailer with a recession-resistant business model, currently valued at a forward P/E multiple of 18.5 times fiscal 2026 estimates [2] - The company has a market capitalization of $11 billion, with a current stock price of $27.09, and has seen a revenue increase of over 8.5% in the first nine months of its fiscal year [3][4] - More than 80% of Chewy's sales come from auto-ship customers, contributing to its stable business model [4] - Chewy is experiencing gross margin expansion through high-margin sponsored ads, a new paid membership program, and higher-margin private label brands, which can have gross margins up to 700 basis points higher than national brands [5] Dutch Bros - Dutch Bros is a rapidly growing coffee chain with a market capitalization of $6.8 billion and a current stock price of $53.49, benefiting from strong same-store sales growth of 5.7% in its third quarter [6][7] - The company is introducing hot food items, which have shown a 4% lift in comparable-store sales during early pilots, and plans to roll these out to about 75% of its locations [7] - Dutch Bros aims to expand from fewer than 1,100 locations to 2,029 by 2029, with a potential to support around 7,000 locations across the U.S., fully funding its expansion through free cash flow [8]

Group 1: Market Overview - European stocks are expected to open mixed following a sell-off in major U.S. stock averages due to concerns over AI-led disruption [1] - U.S. equity futures remain little changed as investors await earnings reports from Alphabet and Amazon [1] - The tech-heavy Nasdaq Composite fell by 1.4%, the S&P 500 decreased by 0.8%, and the Dow Jones dropped by 0.3% [7] Group 2: Company Earnings - Chipotle has projected no sales growth for 2026, indicating potential stagnation in its revenue [2] - Match Group exceeded Q4 revenue expectations, showcasing strong performance in the online dating sector [2] - Amgen reported significant beats on both top and bottom lines, reflecting robust financial health [2] Group 3: Economic Indicators - The flash Eurozone CPI print and reports on U.S. private sector employment and service sector activity are anticipated to attract investor attention [3] - The European Central Bank is expected to announce no change in interest rates, with a focus on growth and inflation outlook [3] - The Bank of England is also likely to maintain steady rates, with no major changes in economic projections [4] Group 4: Commodity Market - Gold prices increased nearly 3% to $5,079 per ounce, marking a significant rise amid renewed tensions between the U.S. and Iran [6] - Oil prices extended gains after a 2% rise, influenced by military actions involving the U.S. and Iran [6]

Market Overview - Major stock indices closed lower, with the Dow down 166 points (approximately 0.33%), the NASDAQ composite down nearly 1.5%, and the S&P 500 down about 0.8% [1][2] - The tech sector was the worst performer, down 2.2%, while energy was the best performing sector, up 3% [4][5] Sector Performance - Energy, materials, staples, and industrials closed at record highs, with energy recently achieving its first record high in over a decade [4] - The transportation sector saw a notable increase of 2% on the day, totaling a 5% rise when including the previous day's performance [3] Company Earnings - Chipotle - Chipotle reported Q4 adjusted EPS of $0.25, slightly above the expected $0.24, with revenue of $2.98 billion, surpassing the consensus of $2.96 billion [29] - Comp sales were down 2.5%, better than the expected decline of 2.94%, but the guidance for 2026 comp sales was flat, below the anticipated growth of 1.8% [29][34] - The company plans to open between 350 to 370 new restaurants in 2026, slightly below analyst expectations of 357 [30] Company Earnings - AMD - AMD reported Q4 EPS of $1.53 on revenue of $10.3 billion, exceeding expectations of $1.32 and $9.6 billion respectively [50] - Data center revenue was reported at $5.4 billion, above the expected $4.97 billion, and the Q1 revenue outlook was better than expected, projected between $9.5 billion and $10.1 billion [51] - Despite the positive earnings, AMD shares fell over 5% in after-hours trading, possibly due to high market expectations [52][54] Analyst Insights - Analysts noted that AMD's data center business showed continued strength, with a nearly $500 million increase in market share, and a 39% annual increase in the client-side business [56] - Concerns were raised about the potential impact of a global memory shortage on PC demand, which could affect AMD's bottom line [58] - Analysts believe AMD is well-positioned with upcoming products that could compete effectively against Nvidia, particularly in the data center market [60][62]