This week’s top stories in Nation’s Restaurant News include: Blackstone to acquire Tropical Smoothie Cafe in $2 billion deal. New York City-based private equity firm Blackstone has agreed to buy restaurant chain Tropical Smoothie Cafe for a reported $2 billion, including debt, the companies announced. Blackstone said the deal with Atlanta-based fast-casual Tropical Smoothie Cafe LLC is “the first transaction from the latest vintage of Blackstone’s flagship private equity business.”
In other news, Chipotle released its first-quarter results after the market closed on Wednesday, and the company once again bucked the industry’s trend of declining traffic, with volume increasing by 5%. Credit Chicken al Pastor, Barbacoa, and increased throughput to meet demand for both. The company also reported that comp sales increased by 7% and system sales also increased by 15% to reach $2.7 billion.
Also, McDonald’s spent much of its first-quarter earnings call Tuesday morning talking about consumer pressures, continuing a conversation that began last quarter, when the company reported a decline in foot traffic among low-income customers. It seems like all consumers are taking a little step back this time.
“In the first quarter, widespread consumer pressure continued around the world. They become more discriminatory with every dollar they spend. In the US and several other markets, industry traffic is flat to declining,” CEO Chris Kempczinski said on a conference call. “We know that now more than ever, our customers are looking for reliable, everyday value.”
See what else is trending this week on NRN.com.
