Global Trends and Politics
Wendy’s, Denny’s, Red Lobster Close Locations in 2024
A Rough Year for the Restaurant Industry
A rough year for the restaurant industry led many chains to close underperforming locations in 2024, as they try to improve their sales in the years to come.
Inflation-weary consumers pulled back their restaurant spending in 2024 and instead sought value and discounts when they did choose to dine outside their homes. Overall U.S. restaurant visits fell for the first 10 months of the year, according to data from industry tracker Black Box Intelligence.
The decline in restaurant spending led to weak sales and a surge in bankruptcies for the industry. Twenty-six restaurant companies filed for Chapter 11 bankruptcy protection in 2024, nearly triple the number of filings in 2020, during the height of the pandemic.
With few exceptions, casual-dining chains in particular struggled to attract customers, adding to the segment’s challenges that have mounted since the Great Recession. Since the rise of fast-casual chains, many diners have opted for the convenience and promised quality of players like Chipotle or Sweetgreen over the casual-dining chains that dominated in the prior decades.
Here are the restaurant chains that announced closures in 2024:
### Wendy’s
In late October, Wendy’s announced it would shutter 140 underperforming locations by the end of the year, in addition to the roughly 80 closures it had in the first three quarters. Executives made the decision to prune some outdated restaurants that had annual unit volumes of about $1 million each to improve the company’s overall footprint.
### Applebee’s
In May, Applebee’s parent, Dine Brands, said it planned to shutter between 25 and 35 of the brand’s U.S. locations. By late September, Applebee’s global unit count had fallen by 36 locations compared with the year-ago period. Applebee’s same-store sales have declined for the last six straight quarters, according to company filings.
### Denny’s
Denny’s closed about 50 locations in 2024 and plans to shutter an additional 100 restaurants by the end of 2025. Including this year’s closures, the 24-hour diner chain still has roughly 1,300 open locations. The restaurants marked for closure are in the lower third of the chain’s performers, with annual unit volumes of $1.9 million to $2 million, executives said at the company’s investor day in October.
### TGI Fridays
In November, TGI Fridays joined the slew of restaurant companies that filed for bankruptcy protection. But before it filed for Chapter 11, it shuttered 86 restaurants, starting with 36 closures in January and another 50 in late October. The last round of closures took the chain’s footprint down to roughly 160 open locations worldwide. But the count could dwindle more. A bankruptcy court in Texas will determine TGI Fridays’ future, which could mean closures for the chain.
### Red Lobster
Red Lobster permanently shuttered more than 120 restaurants in 2024. The seafood chain closed roughly 100 locations before it filed for Chapter 11 bankruptcy protection in May. Before it exited bankruptcy with a new owner and CEO, the company rejected the leases of another 23 restaurants.
### Noodles & Co.
Fast-casual chain Noodles & Co. announced in August that it would close roughly 20 locations after reviewing its entire 475-restaurant footprint. The review was part of the company’s efforts to improve its operations and finances after a rocky few years. Noodles & Co. has also been overhauling its menu, cutting items that don’t sell and adding new entrees that might appeal to more customers.
### Bloomin’
Bloomin’ Brands, the parent company of Outback Steakhouse, Carrabba’s Italian Grill, and Bonefish Grill, shuttered 41 underperforming restaurants in 2024. The closures affected older locations with leases dating back to the 1990s and early 2000s, executives said on the company’s earnings conference call in February.
Conclusion
The restaurant industry faced a tough year in 2024, with many chains closing underperforming locations to improve their sales and finances. The industry’s struggles are a result of inflation-weary consumers pulling back their restaurant spending and seeking value and discounts. While some chains have filed for bankruptcy protection, others are working to revamp their menus and operations to attract more customers.
FAQs
Q: Why did many restaurant chains close underperforming locations in 2024?
A: The chains closed locations to improve their sales and finances, as inflation-weary consumers pulled back their restaurant spending and sought value and discounts.
Q: Which restaurant chains filed for bankruptcy protection in 2024?
A: Twenty-six restaurant companies filed for Chapter 11 bankruptcy protection in 2024, including TGI Fridays and Red Lobster.
Q: Which fast-casual chain announced closures in 2024?
A: Noodles & Co. announced it would close roughly 20 locations after reviewing its entire 475-restaurant footprint.
Q: Which casual-dining chain struggled to attract customers in 2024?
A: Applebee’s same-store sales have declined for the last six straight quarters, according to company filings.
Global Trends and Politics
United Airlines 4Q 2024 Earnings
United Airlines’ Strong Earnings, Growth Outlook Boosts Stock
Gary Hershorn | Corbis News | Getty Images
United Airlines forecast first-quarter earnings that surpassed analysts’ estimates as the carrier seeks to grow earnings again in 2025 thanks to strong travel demand.
Q1 Earnings Forecast
The airline said Tuesday that it expects to earn an adjusted 75 cents to $1.25 in the first three months of the year, above the 54 cents analysts had expected, according to LSEG estimates.
Stock Performance
United’s stock is up more than 180% over the past 12 months as of Tuesday’s close, more than any other U.S. carrier.
Q4 Results
Here is what United reported for the fourth quarter compared with what Wall Street expected, based on estimates compiled by LSEG:
- Earnings per share: $3.26 adjusted vs. $3.00 expected
- Revenue: $14.70 billion vs. $14.47 billion expected
Full-Year 2025 Outlook
For full-year 2025, United expects to grow adjusted earnings to $11.50 to $13.50, in line with expectations of about $12.82, according to LSEG.
Industry Trends
United and rival Delta have benefitted from strong demand for pricier seats like in business class, international travel and their massive loyalty programs. Delta’s CEO Ed Bastian earlier this month said he expects 2025 to be the carrier’s “best financial year in our history.”
Q4 Results Details
United reported a $985 million profit for the fourth quarter, up 64% over last year, on $14.70 billion in revenue, which was up about 8% from a year earlier. Adjusting for one-time items, United reported $3.26 a share for the fourth quarter, also ahead of expectations.
Loyalty-Program Revenue
Loyalty-program revenue, as well as international, domestic and basic economy-class revenue all rose from a year earlier and unit revenue, which measures pricing power, turned positive over the same quarter of 2023.
CEO Comments
United CEO Scott Kirby said he was upbeat about President Donald Trump’s new administration and said that airlines need improvements to air traffic control, echoing sentiments from other industry CEOs like Delta’s Bastian.
Conclusion
United Airlines’ strong earnings and growth outlook are a testament to the carrier’s ability to adapt to changing market conditions and capitalize on strong demand for air travel. As the airline industry continues to evolve, it will be interesting to see how United and its competitors respond to emerging trends and challenges.
FAQs
Q: What is United Airlines’ Q1 earnings forecast? A: United expects to earn an adjusted 75 cents to $1.25 in the first three months of the year.
Q: How does United’s stock performance compare to other U.S. carriers? A: United’s stock is up more than 180% over the past 12 months, more than any other U.S. carrier.
Q: What is United’s full-year 2025 earnings outlook? A: United expects to grow adjusted earnings to $11.50 to $13.50 in 2025.
Global Trends and Politics
Your Right to Paid Time Off: What You Need to Know
As an employee, you have numerous rights and privileges that come with your job. One of the most important of these rights is the right to paid time off. Paid time off, also known as PTO, is a benefit that allows employees to take time off from work without using their vacation or sick leave. In this article, we will explore the importance of paid time off, the different types of PTO, and what you need to know to exercise your right to take time off.
The Importance of Paid Time Off
Paid time off is essential for maintaining a healthy work-life balance, reducing stress, and improving overall well-being. Without PTO, employees may feel burnt out, demotivated, and less productive. Paid time off allows employees to recharge, relax, and come back to work feeling refreshed and revitalized. It also gives employees the opportunity to attend to personal matters, such as doctor’s appointments, family obligations, and personal errands, without having to use vacation or sick leave.
There are several types of paid time off, including:
Vacation Time
Vacation time is the most common type of PTO. It is typically accrued and can be used to take a break from work to travel, relax, or pursue personal interests.
Sick Leave
Sick leave is used to care for personal or family medical issues. It is usually accrued and can be used to take time off when an employee is ill or injured.
Bereavement Leave
Bereavement leave is a type of PTO used to grieve the loss of a loved one. It is usually accrued and can be used to take time off to attend to funeral arrangements, visit with family and friends, or simply to grieve.
Paid Family Leave
Paid family leave is a relatively new type of PTO, which allows employees to take time off to care for a new child, a seriously ill family member, or a family member who is experiencing a serious medical emergency. This type of PTO is usually provided by the government or through employer-provided programs.
What You Need to Know to Exercise Your Right to Paid Time Off
To exercise your right to paid time off, you need to understand the following:
Accrual Rates
Accrual rates refer to how much PTO is earned per pay period. It is essential to understand how your PTO accrues and how much you have available to use.
Accrued Balance
Accrued balance refers to the amount of PTO you have available to use. Make sure to check your accrued balance regularly to avoid taking more time off than you have available.
Requesting Time Off
Requesting time off is a straightforward process, but it is essential to follow your company’s policy and procedure. Make sure to provide adequate notice, specify the dates you need off, and indicate if you will be using vacation or sick leave.
Manager Approval
Manager approval is usually required to take time off. Be prepared to discuss your request with your manager and provide a valid reason for taking time off.
Record Keeping
Keep accurate records of your PTO, including the dates taken off, the type of PTO used, and any correspondence with your manager. This will help you track your accrued balance and ensure you are in compliance with company policies.
Conclusion
In conclusion, paid time off is an essential benefit that allows employees to rest, relax, and recharge. It is crucial to understand the different types of PTO, accrual rates, and how to exercise your right to take time off. By following the guidelines outlined in this article, you can make the most of your PTO and maintain a healthy work-life balance.
FAQs
Q: What is the difference between vacation time and sick leave?
A: Vacation time is used for personal reasons, such as travel or relaxation, while sick leave is used for medical reasons, such as illness or injury.
Q: Can I use my PTO to take time off for a family event, such as a wedding or birthday party?
A: It depends on your company’s policy. Some companies may allow PTO for family events, while others may not.
Q: How much notice do I need to give my manager to take time off?
A: The amount of notice required varies by company and policy. Some companies may require 30 days’ notice, while others may require less.
Q: Can I use my PTO to take time off during peak holiday seasons, such as Christmas or New Year’s?
A: It depends on your company’s policy. Some companies may have restrictions on taking time off during peak holiday seasons, while others may allow it.
Q: Can I carry over unused PTO to the next year?
A: It depends on your company’s policy. Some companies may allow carryover, while others may not.
Global Trends and Politics
Netflix (NFLX) Earnings Q4 2024
Netflix Soars 14% After Beating Q4 Earnings Estimates
Strong Q4 Results
Shares of Netflix soared more than 14% on Tuesday after the company posted fourth-quarter results that beat on the top and bottom lines.
Key Highlights
- The company surpassed 300 million paid memberships during the quarter, adding a record 19 million subscribers.
- Revenue in the fourth quarter jumped 16% year-over-year, reaching $10.25 billion, higher than the $10.11 billion Wall Street had predicted.
- Net income for the period was $1.87 billion, or $4.27 per share, up from $938 million, or $2.11 per share, during the same quarter a year earlier.
Earnings Performance
Here’s how Netflix performed for its most recent quarter, ended December 31, compared with Wall Street estimates:
- Earnings per share: $4.27 vs. $4.20, according to LSEG
- Revenue: $10.25 billion vs. $10.11 billion, according to LSEG
- Paid memberships: 301.63 million vs. 290.9 million, according to StreetAccount
Company’s Outlook
For the full year 2025, Netflix raised its revenue expectations to a range of $43.5 billion to $44.5 billion, around $500 million higher than its previous forecast, reflecting improved business fundamentals and the expected carryover benefit of its stronger-than-expected fourth-quarter performance.
Content and Growth
The fourth quarter was the last for which Netflix will report quarterly paid subscriber counts, as previously announced. Instead, it will start reporting a bi-annual "engagement report" alongside its second- and fourth-quarter releases.
The streamer touted the success of its fourth-quarter slate, which included the release of season 2 of the hit series "Squid Game" as well as live sporting events like the record-breaking Jake Paul and Mike Tyson boxing match and National Football League games on Christmas Day.
Improving Product and Expanding to New Markets
The company plans to improve its core business with more series and films, enhance its product experience, and continue to grow its ads business. Netflix is expected to delve further into the live event space and games, as well.
Conclusion
Netflix’s strong Q4 results demonstrate the company’s continued momentum and ability to attract new subscribers. With a strong content slate, improved product, and expansion into new markets, Netflix is poised for continued growth in 2025 and beyond.
FAQs
Q: What were Netflix’s Q4 earnings per share?
A: $4.27
Q: What was Netflix’s revenue for Q4?
A: $10.25 billion
Q: How many paid memberships did Netflix add in Q4?
A: 19 million
Q: What is Netflix’s outlook for 2025?
A: The company expects revenue to be in the range of $43.5 billion to $44.5 billion.
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