WINGSTOP Margins
Inflation, especially food inflation, has been a problem for WING for some time, but this quarter decline in margins was spectacular. Today WING reported 3Q21 Non-GAAP EPS of $0.29 misses by $0.06; GAAP EPS of $0.38 beats by $0.03. Revenue of $65.78M (+2.8% Y/Y) misses by $9.08M. System-wide sales increased 16.7% to $594.3M. Domestic same-store sales increased 3.9%. Cost of sales 87.5% vs StreetAccount 80.0% and year-ago 76.0% (WOW) Restaurant margin 12.5% vs FS 19.9% and year-ago 24.0%; EBITDA margin 32.5% vs FS 28.7% and year-ago 28.8% (EBITDA margin did not collapse due to the decline in advertising expense.)
DASH/BBBY/ULTA
- Bed Bath & Beyond latest tie-up with Uber
- DASH ties up with ULTA
Bed Bath & Beyond has partnerships with Roadie, DoorDash, Instacart, and Shipt for delivery and add UBER. "This partnership with Uber is a terrific way we are reaching new customers, and the fact that BuyBuy Baby was chosen to help launch Uber's baby and kids delivery vertical reflects the brand's leadership in welcoming customers to parenthood," Rafeh Masood, Bed Bath & Beyond's chief digital and interim chief brand officer, said in a statement. "We are excited to begin this journey with Uber and look forward to having their innovative services market and deliver products from Bed Bath & Beyond and BuyBuy Baby right to customers' doorsteps." Doordash, Amazon, and Walmart aggressively drive awareness for speedy and efficient delivery, forcing other retailers to join the chase. As a result, Sephora, Staples, and Rite Aid, among others, have added same-day delivery services over the last year or so.
Yesterday, DoorDash (DASH) announced a partnership with Ulta Beauty (ULTA) to offer same-day delivery from select Ulta Beauty stores in Atlanta, Boston, Chicago, Los Angeles, Houston, and Boise, with plans to expand and roll out more broadly in 2022 through DoorDash Drive (DoorDash's white-label fulfillment platform that powers direct delivery for any business.) Same-day delivery service will be available for Ulta Beauty's assortment of more than 25,000 beauty products across cosmetics, skincare, haircare, fragrances, and more. Consumers need to place a same-day delivery order were available on ulta.com.
"We see consumers looking for faster and more convenient ways to get their favorite brands delivered same-day," said Shanna Prevé, vice president of strategic partnerships and business development at DoorDash. "We are thrilled to partner with Ulta Beauty to power their same-day delivery experience and bring the magic of in-store shopping home for customers, during the holiday season and throughout the year."
DoorDash Drive helps merchants meet customer delivery demand created through owned channels without the need for in-house infrastructure to support last-mile fulfillment. Through this partnership, Ulta Beauty will receive on-demand access to DoorDash's Dasher fleet to fulfill customers' digital orders, whether placed in advance or on the same day.
CMG STAGE-GATE PROCESS
Chipotle Mexican Grill (CMG) yesterday announced it is testing Pollo Asado, the first menu innovation with chicken in its 28-year history, at 95 restaurants across Cincinnati, Ohio, and Sacramento, Calif. Pollo Asado features the unique taste of garlic, fresh lime, guajillo peppers, and hand-chopped cilantro. Chicken is popular at CMG, and they have decided it was time to add another option with Pollo Asado chicken (grilled in small batches) as a complement to the everyday items." To drive a trial of the Pollo Asado test, Chipotle is offering a $0 delivery fee on all Pollo Asado orders via the Chipotle app and Chipotle.com from November 8 through November 14. Higher menu prices are charged for delivery; additional service fees are applied at checkout as well. $10 order minimum / $200 order maximum, excluding tax; purchase of Pollo Asado entrée required. Available within Chipotle's delivery areas from participating U.S. locations only, during regular operating hours for such locations. Deliveries and redemption are subject to availability. Offer is not valid on catering or Burritos by the Box orders. Redemptions of Chipotle Rewards and other promotional offers may be included in a qualifying delivery order but do not count towards satisfaction of minimum purchase requirements. Valid only at chipotle.com or on the Chipotle app; not valid on orders placed via third-party delivery platforms.
