Which American Restaurant Chains Might Go Under?

TheStreet.com recently analyzed the Z-score (a formula that measures a company's financial health through factors such as working capital, total assets, total liabilities, market capitalization, sales, retained earnings and earnings before interest and taxes) of several chain restaurants to forecast the chances of the companies going bankrupt in the next two years.

The article points out that although stocks from companies like McDonald's, Chipotle and Starbucks are generally growing, restaurants like Sbarro's and Marie Callender's filed for bankruptcy this year.

Below is a list of which other chains (market capitalization of at least $100 million) might follow suit, from least risky to most risky:

14. Red Robin
13. Sonic
12. Ruby Tuesday
11. Carrols Restaurant Group (Pollo Tropical, Taco Cabana)
10. Einstein Noah Restaurant Group
9. O'Charley's (its namesake as well as Ninety Nine Restaurant and Stoney River Legendary Steaks)
8. Ruth's Hospitality Group (Ruth's Chris Steak House, Mitchell's Fish Market)
7. McCormick & Schmick's
6. Bravo Brio Restaurant Group (BRAVO! Cucina Italiana and BRIO Tuscan Grille)
5. Domino's Pizza
4. DineEquity (IHOP, Applebee's)
3. Morton's Restaurant Group
2. Wendy's/Arby's
1. Denny's

Learn more about the financial struggles of the individual chains at TheStreet.com.

Comments

[RobJames]

12:16 AM on 07/23/2011

If I can't get my Rooty Tooty Fresh and Fruity, I'm going to snap

[joselocifu]

11:19 PM on 07/22/2011

I just bought 300 shares of Wendy, for $5. I hope it doesn't go down...If it does...Good bye $1500

[zoseph]

10:08 PM on 07/22/2011

Domino's is hosed. They can't possibly get people to pay any more for that tiny bit of flatrolled food.

[zoseph]

10:06 PM on 07/22/2011

Arby's doesn't deserve the small amount of business that they get. How does the FDA manage to allow them to call that grey matter "roast beef??"

[CAELadyJane50]

10:53 PM on 07/07/2011

I am glad Burger King (meat is cooked on the grill to make the fat drip off) is not on the list but I am going to miss the curly fries and lean roast beef sandwiches from Arby's.

[PeaceBunny00]

10:39 PM on 07/07/2011

i love how the article mentions sbarro, yet sbarro isn't on the list!! i just ate there yesterday!! yumm!!

[Rogo99]

01:46 PM on 07/24/2011

I'd rather eat the box.

[Six Gator]

11:11 AM on 07/07/2011

red robin!..say it ain't so

[DangerousTalk]

11:44 AM on 07/06/2011

Noooooo! I love Arby's and Sonic!

[Kyle Perry]

09:29 AM on 07/04/2011

Those posting apparently have no knowledge of Pollo Tropical, which is one of the healthiest fast food options out there. Losing them would be a loss for families that can't afford pricier options.
http://www.pollotropical.com/about.aspx

[Difster]

04:23 AM on 07/04/2011

I have a love/hate relationship with Denny's. I do hope they stay in business though.

[giuseppi]

06:12 PM on 07/02/2011

I would have liked to see cracker barrel on the list.

[PeaceBunny00]

10:40 PM on 07/07/2011

you must be a disgruntled ex-employee who was fired. cracker barrel has standards, and if you can't live up to their traditional, and much appreciated standards, then go work at mcdonalds or red lobster.

[giuseppi]

01:14 PM on 07/08/2011

Never worked there. The only thing I ever got from cracker barrel was relatively cold food.

[mukarrib]

04:08 AM on 07/23/2011

Eating in many of the Cracker Barrel restaurants is like eating in a tomb, can't see the menu, the cheer of some of the waitresses seems forced and I'd like to see into the recesses of my dinner. It seems like a popular place but don't eat there much. Americana meets the abyss.

[susou]

03:47 PM on 07/01/2011

they're suppose to be opening a Sonic in my town soon... in the stupidest location, no less. I don't kno how this list will effect it opening now.

[grod805]

12:32 PM on 07/01/2011

Domino's?
Really?

In the last year their stock when up 127%!
I don't see how that in any way seems in the least bit bound for bankruptcy

[Difster]

04:16 AM on 07/04/2011

Stock prices don't always reflect the actual viability of a company, their profits, efficiency, etc. Their stock may very well have gone up because people are ordering cheap pizza and sales are up. But if it's mis-managed, they don't hit the right price points, etc. the company can still be in poor health.

[DangerousTalk]

11:45 AM on 07/06/2011

They probably over spent on Republican Congressmen or something.

[Roray]

10:51 AM on 07/01/2011

Let's hope they all do

[DangerousTalk]

11:46 AM on 07/06/2011

Why, So people can be out of work? Personally, I like some of these places and hope they don't go out of business.

[peeaceandquiet]

08:55 AM on 07/01/2011

Another headline that is totally disceiving. Huffpost needs to get some reporters that actually can headline and article and report some interesting facts.