Monday, February 9, 2009

"Hey E - weren't you a manager at Sbarro before this?"

Sbarro has been identified as a potential bankruptcy-waiting-to-happen, and I'd say we welcome that as it could be a boost to the bottom line of many dominos pizza chains... see below.

Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

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