May 3, 2023
At Chipotle, 1Q23 sales growth was driven by a 10.9% increase in comps and new restaurant openings. In-restaurant sales increased 22.9%, which digital sales represented 39.3% of food and beverage revenue. The Company opened 41 new restaurants during the quarter, including 23 locations with a drive-thru.
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Wawa opened its 1,000th store in Oaklyn, NJ on April 27. Upcoming growth plans include market entrances in Ohio, Indiana, and Kentucky, along with a push to expand in the Southeast. Wawa’s goal is to double its footprint within the next decade. Currently its stores are located in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida, and Washington D.C.
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The Huntsville, AL City Council announced that Food City, owned by K-VA-T Food Stores, will invest $90 million to build six new stores over the next five years. In turn, the city of Huntsville will provide cost reimbursements up to $9 million (total for all six locations opened) in sales tax to offset a portion of the Company’s infrastructure costs incurred for construction of the six retail groceries. The stores will open in two phases, with three units in each phase. Construction on Phase I is expected to start this month with the first store opening this fall. The Virginia-based K-VA-T has more than 140 stores in Virginia, Kentucky, Georgia, Tennessee, and Alabama.
On April 25, the Court issued interim orders authorizing Bed Bath & Beyond, DIP to:
- Continue or initiate closing sales at the remaining 472 brick-and-mortar stores.
- Select a stalking horse bidder and conduct an auction for the sale of the Debtors’ assets.
A hearing on final approval of first day orders is scheduled for May 16. Additionally, the Debtors filed a motion seeking to reject 482 unexpired leases of previously closed stores.
We are actively monitoring the bankruptcy case. Click here to request case updates and store closings.
WHP Global, the parent company of Toys “R” Us, has announced a new partnership with omnichannel retailer El Puerto de Liverpool, SAB de CV to launch the established toy brand in Mexico for the very first time. The deal includes debuting standalone flagship stores and an e-commerce platform. Recently WHP launched the Toys “R” Us brand in India, United Kingdom, and Australia. The first Toys “R” Usflagship store in Mexico is slated to open for the 2023 holiday season.
Academy Sports + Outdoors will open its first location in Peoria, IL this summer. The 60,000 squarefoot location is the Company’s second location in Illinois, and in addition to featuring an assortment of sporting goods, it will also offer in-store services, such as free assembly on grills and bikes, fishing line winding/spooling, scope mounting, bore sighting, and the ability to purchase hunting and fishing licenses. Academy plans to continue its expansion efforts with the goal of opening 13 – 15 stores in 2023, and a total of 120 to 140 new stores by the end of 2027.
Last week, Yellow Banana, the owner and operator of eight Save A Lot locations in the Chicago, IL area, announced the March 31, 2023 closing of a $26.5 million investment into grocery stores on the South and West Sides of Chicago. The investment combines a $13.5 million community development grant that the city of Chicago previously awarded to Yellow Banana in July 2022 with new markets tax credits, third-party financing, and funding from Yellow Banana. Through this project, Yellow Banana will make comprehensive upgrades to its existing Chicago area stores as well as re-open a former Save A Lot, in the Auburn Gresham neighborhood, that closed in 2020.
Panera-owned Caribou Coffee has signed several multi-unit agreements to add over 300 domestic franchise locations over the next few years. The Company began expanding its franchise program in October 2021; in March 2022, it signed its first multi-unit development agreement for locations in Ohio. Then it executed another deal with Wake Up 727 to franchise locations in Pinellas County, FL; Wake Up 727 recently expanded their agreementto develop 35 locations, the first of which is due to open this fall.
Additional agreements have been executed with several Panera Bread franchisees. Paul Saber and Patrick Rogers will bring the brand back to Michigan with over 50 planned locations across the state. Hamra Enterprises signed a deal to open 24 Caribou locations throughout Missouri. M
ost recently, Caribou inked a deal with Kevin Ricci and Sam Covelli to open 60 locations in Florida (including Gainesville and along the west coast) and 100 locations across the northern half of Ohio, western Pennsylvania, and Florida (including Orlando and the east coast from West Palm Beach to Miami). As of March 28, 2023, Caribou Coffee has 330 Company-owned, 141 non-traditional and 294 traditional franchise locations in 11 countries.
Rego Restaurant Group, which owns Quiznos and Taco Del Mar, has opened its first dual-branded location in Cape Coral, FL in partnership with Sunshine Gasoline Distributors, Inc. In total, the deal includes plans to open at least 13 combined, dual-branded Quiznos and Taco Del Mar restaurants in central and south Florida, including Orlando, Tampa, and Miami. The flagship opening marks the first of several new Quiznos and Taco Del Mar restaurants in Florida which will showcase components of the updated store designs introduced last year. The second dual-branded location is slated to open later this month in Venice, FL.
REI announced that it is planning to open a new 25,000 square-foot store in Prescott, AZ in Fall 2023. The location, which will be leased from the Yavapai-Prescott Indian Tribe and located on tribal land at Frontier Village Center, will offer a full-service bike shop as well as buy online-pick up in store and curbside pick-up services. This is the Company’s fifth store in Arizona, the four others are located in Flagstaff (opened 2014), Paradise Valley (opened 1996), Chandler (relocated to current space in 2017), and Tucson (opened 2010). There are currently 181 REI locations in 42 states and the District of Columbia.
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Carter's downtrend continued into 1Q23, as inflation continues to weigh on young families, depressing sales across the Company’s three business segments. During 1Q23, the Company opened 10 stores and closed seven, ending with 996 stores, of which 760 were in the U.S. In FY23, management plans to open 62 new locations while closing 16, ending the year with 1,042 stores.
In 1Q23, Sleep Number returned to more efficient operations with a consistent flow of microchips following nearly two years of supply disruption. Sales were relatively unchanged while comps declined 2% primarily due to an 18% decrease in online comps, mostly offset by a 1% increase in retail comps. The Company opened 12 new stores and closed 11 underperforming locations.
This week, Trader Joe’s will open its third store this year, with a new location in Orange County, CA. The Cypress store marks the 193rd in the state; overall, the Company operates more than 500 stores nationwide.
Alimentation Couche-Tard agreed to acquire 112 fuel and convenience store retail sites from Mapco Express Inc. The acquisition is contingent on a separate transaction whereby MAPCO and its remaining locations are sold to a third party. The Company will acquire stores in Tennessee, Alabama, Kentucky, and Georgia. The sites are all company operated and most of the real estate is owned. Terms were not disclosed, and the deal is expected to close in the second half of calendar year 2023. Alimentation will use cash on hand plus its existing credit facilities, along with its U.S. commercial paper program to finance the transaction.
This week, Fuzzy's Taco Shop is opening a new location in Arlington, TX. The 3,800 square-foot restaurant will offer traditional Mexican cuisine, a full bar, as well as breakfast options that are available all day. Fuzzy’s has nearly 150 locations in 18 states.
Bass Pro Shops is opening a new, 93,000 square-foot store in Sunset Hills, MO tomorrow (May 3). This is the Company’s third in the St. Louis area, joining a Bass Pro in St. Charles and a Cabela’s in Hazelwood.
O’Reilly Automotive’s 1Q23 comps grew 10.8%, and EPS rose 15% to $8.28. FY23 comps are expected to be 4% – 6%, and the Company aims to open 180 – 190 net new stores this year, including 60 new stores opened and two stores closed during 1Q23.
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BJ’s Restaurants’ 1Q23 restaurant margins improved YOY by 280 bps, driven by solid sales, improved operational execution, and cost-savings initiatives. The Company plans to open five new restaurants in 2023, including one relocation. During 1Q23, the Company opened a new restaurant in Orland Park, IL, its first in the state, and one in San Antonio, TX is slated to open in 2Q23. BJ’s plans to remodel more than 30 restaurants this year, or approximately 15% of its base; so far 14 were remodeled this year, on top of nine last year.
Walmart is opening four new Walmart Health centers in the Oklahoma City-area, marking its first expansion into the state of Oklahoma. The locations, all slated to open in 2024, will each be approximately 5,750 square feet and located adjacent to Walmart Supercenters. The facilities will feature Walmart Health’s full suite of health services, including primary care, dental care, and behavioral health services. Earlier this year, the Company announced it intends to add more health centers in 2024, with plans to expand to Missouri and Arizona for the first time as well as growing its presence in Texas. As of now, Walmart Health has more than 30 locations in Arkansas, Florida, Georgia, Illinois, and Texas.
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QuikTrip opened its 1,000th location in Converse, TX last week. The Company had reached 400 locations in 2002 and 500 locations in 2008. In recent years, it has been pushing to expand its network of remote travel centers in highly trafficked areas. The Company also opened its first locations in Colorado and Mississippi within the last year, and has plans to enter Chicago, IL with at least three stores.
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Bloomin Brands’ 1Q23 U.S. comps were up 5.1% as all four banners experienced single-digit increases; international comps rose in the double digits. Restaurant-level operating margin improved 0.8%. The Company’s store count during the quarter remained stagnant, with eight openings offset by eight closures.
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The below retailers recently released their earnings reports. To request more information on these companies, or to discuss the financial performance with a retail industry expert, please click here.
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