Value Investing News

Over the past week, we surveyed 30 Western Sizzlin (WEST) locations across the United States to track sales trends of and business levels in March. We asked the following questions

1. What is the most popular menu item?
2. What is the price of those items?
3. Average bill for a party of two?
4. Do you offer carry out service? Is it growing in popularity?
5. Is this location busier than last month?
6. Is this a new location?

• 23% said the Rib-Eye steak was the most popular menu item. 17% said that Steak and Shrimp were the most popular. 13% said chopped sirloin special while another 13% said the buffet was the most popular.
• The average bill for a party of two, including drinks, appetizers, etc. was $54.33 across this survey.
• 90% of locations report they do offer carry out service. 10% said they do not. 66% of locations report that carry out is growing in popularity.
• 53% of respondents report that there location is NOT busier than last month, while 47% report that it is busier. NOTE: Negative responses should be weighted more heavily be readers of these surveys.
• 100% of the locations we contacted had been open more than one year (or were considered “not new”) according to our respondents.

Conclusion of Channel Check: Business levels appear to be headed slightly downwards for Western Sizzlin in March. Carry out service does seem to be growing in popularity although not every location offers it. The average bill metric does not convey meaning now, but will as we run subsequent surveys on Western Sizzlin.

For access to the underlying survey or for more information, please contact Jason Katz at 415.867.0959 or jason@thechannelcheckers.com