When you think about the bankruptcy cycle, chain restaurant companies are not the first thing that comes to mind. Most restaurant companies don't need working capital to survive, as a result this is the primary differentiator between restaurants and other consumer companies.
- Three themes to take away from companies that have gone bankrupt:
(1) Family dining and Casual Dining make up the bulk of companies that have gone bankrupt.
(2) Inefficient consumer proposition
(3) Executive suite revolving door
