Wray Newsletter Masthead
Big News
With Plunging Sales, Cosi Continues To Crumble The turnaround that Cosi so desperately desires has slipped ever farther from view.

In a business update released Wednesday morning, the troubled fast-casual chain revealed that its comparable store sales slipped 1.6% in its second quarter; in the four weeks between May 30 and June 27, same store sales dropped 4.5%. Company-owned restaurants fared far worse than franchise-owned stores; the former group reported a 4.1% decline in second quarter comparable store sales and a 6.6% plunge over the four weeks in June compared to a respective 0.4% uptick and 3.6% gain for the franchises.

The disappointing sales performance is leading Cosi to revise its forward guidance. As recently as May 12, the company was saying that it expected to achieve "positive adjusted EBITDA" between the second and third quarter. This is no longer the case.
   Full Article »

Executive Movements

Brinker International Names Kelli Valade President of Chili's.             
Full Article »

Consolidated Concepts Hires Former Red Robin Exec to Lead Business Initiatives.
Full Article »

FOCUS Brands Names Rick Altizer as President of McAlister's Deli.
Full Article »

Yum! Brands Names Keith Siegner Vice President, Investor Relations and Corporate Strategy.     Full Article »

Wendy Moats Named Senior Vice President of Operations for Pie Five Pizza Co..   Full Article »

Logistics Movers: Starbucks Names Hans Melotte as Supply Chain Chief.
Full Article »

Tim Tassopoulos Named President and Chief Operating Officer of Chick-fil-A, Inc.  Full Article »

The Wendy's Company Appoints Todd Penegor Chief Executive Officer.
Full Article »


Financial Overview

Bob Evans' weak outlook sends stock plunging.
Full Article »

Zoës Kitchen Announces First Quarter 2016 Results.
 Full Article »

Popeyes Louisiana Kitchen, Inc. Reports Results for First Quarter 2016.
 Full Article »

Red Robin Gourmet Burgers Reports Results for the Fiscal First Quarter Ended April 17, 2016.   Full Article »

Shake Shack Announces First Quarter 2016 Financial Results.   Full Article »

Jack in the Box Inc. Reports Second Quarter FY 2016 Earnings.
Full Article »


Big News Too
Starbucks Will Give U.S. Front-Line Employees and Managers Raises of At Least 5% In October Starbucks Corp. SBUX, -0.30% said Monday it will give raises of at least 5% to all partners and store managers in U.S. company stores, starting Oct. 3, in response to what Chief Executive Howard Schultz called a "tragic week of violence" in the U.S. In a letter to employees posted on Starbucks' website, Schultz said it will double the "bean stock" award for employees who have reached two years of continuous service with the company. Coupled with the pay rise, the new bean stock program will result in total compensation for employees increasing between 5% to 15%.   Full Article »

Recruiting Call to Michael Bloomberg
by Bob Gershberg, CEO/Managing Partner Wray Executive Search
Bob Gershberg

"Good Morning Michael. Bob Gershberg, CEO at Wray Executive Search, reaching out today to tell you about a search we are conducting for a rather exciting CEO opportunity. Some would say it is the best job in the world, others might say it is the worst. But you know me Mike, I'm not going to blue sky you - it definitely has its challenges. The client is clearly looking for a change agent although they don't seem to ever execute change well. The base comp is not great but the perquisite package is quite substantive. They even give you a 55,000 square foot home to live in- full relo but not sure they'll cover closing costs on any of your 14 homes. Then again, I heard you have homes in the Hamptons, London, Colorado, Bermuda and Florida. Guess you'll be keeping those."  
Full Article »
As a restaurateur, my job is to basically control the chaos and the drama. There's always going to be chaos in the restaurant business.   
Rocco DiSpirito

If anything is good for pounding humility into you permanently, it's the restaurant business.
  - Anthony Bourdain
by John A. Gordon, principal and founder of Pacific Management Consulting Group
John A. Gordon

Many of us recall two years ago when the pitched battle for control of Darden (DRI) was underway. Darden picked up activist investors in 2013 with weak results reported for some time beforehand. While the battle was underway, in May 2014, Darden shocked some by selling Red Lobster despite fierce protests from the hostile suitors, Starboard and Barrington Capital and some other investors at the time. The suitors hoped to monetize the Red Lobster real estate, which is exactly what Red Lobster did anyway, upon its sale to Golden Gate Capital Group.  Full Article »
Financial Edge
Getting ahead of Millennials: Generation Z
by David Ulrich, EVP Wray Executive Search

David Ulrich
There's been a lot of articles and information written specifically about the Millennial generation because of its vast size as a consumer population, but also to better understand this generations habits, tastes, and behaviors. There probably hasn't been a generation that has been so focused upon since their arrivals as kids back in the mid to late 80's.
Full Article »

Big Changes Ahead for LinkedIn
by Rebecca Patt, SVP Development, Wray Executive Search

Rebecca Patt
Few things have been as big a game-changer in the recruiting and business development world as LinkedIn, the professional networking site that has grown to 433 million members since its debut in 2003. I myself have been a member since 2006 and have made over 7000 connections. The site has gotten me a lot of exposure for my work and helped me to create valuable connections with clients and candidates. I am proud to be among the top 1% most connected members on LinkedIn! With the recent headline that Microsoft acquired LinkedIn for $26.2b, one of the biggest acquisitions in tech history, what kind of changes may be ahead in the linking of LinkedIn and Microsoft?
Full Article »
The Big Apple
Restaurants and Real Estate
by Joe Radice, Vice President, Wray Executive Search

Joe Radice
Real estate has always been a significant, if not the determining factor, in opening any restaurant. We have always heard that the three most important considerations for success in opening a new restaurant are "location, location, location". Total occupancy costs should not exceed 10% of total revenues according to the experts - a difficult goal to attain particularly in today's Manhattan of escalating rents. Manhattan real estate prices have certainly never been so outrageous. Yet restaurants continue to open at a fast pace as both operators and landlords alter their strategies and vary their tactics.  
Full Article  »

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