So much for people using their tax refund checks for a few splurges at fast casual restaurant Chipotle (CMG) in the first quarter. Same-store sales for the restaurant industry fell 1.6% in the first quarter, marking the fifth consecutive quarter of negative results, according to industry research firm Black Box Intelligence. The last time the industry experienced a similar ugly period was in 2009 and the first half of 2010 as the economy was in the grips of the Great Recession. Restaurant traffic plunged 3.6% in the quarter, says Black Box Intelligence, with the average check up 1.9%. The increase in check is of little comfort: it's slower than the average 2.3% increase seen in 2016 as brands
GoPro, Inc. GPRO is slated to report first-quarter 2017 results, after the closing bell on Apr 27. The company has had a choppy earnings history, having beaten estimates twice for as many misses in the trailing four quarters, for a modest average positive surprise of 0.2%. Last quarter, GoPro surpassed estimates by 33.3%.
S&P Global Market Intelligence has identified Sears as the most vulnerable public retail company in the US, saying it has a 24% chance of default within a year. This comes after Sears revealed Friday that it has lost its second chief financial officer in six months, just as it begins talks with lenders over a looming $500 million debt payment. Sears also said Friday that it's planning to cut more costs and that it's reviewing bids in excess of $700 million for more than 60 of its real estate properties.