1851

The majority of publicly traded restaurant companies continue to shake off a lackluster winter with decent sales growth in the third quarter, leading to robust profit gains at <a href="http://www.texasroadhouse.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurants-maintain-q3-sales-momentum-907" target="_blank" rel="nofollow" target="_blank">Texas Roadhouse</a> and <a href="http://www.redrobin.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurants-maintain-q3-sales-momentum-907" target="_blank" rel="nofollow" target="_blank">Red Robin</a>. Quick-service chain <a href="http://www.bk.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurants-maintain-q3-sales-momentum-907" target="_blank" rel="nofollow" target="_blank">Burger King</a> also booked a healthy increase in third-quarter comparable sales, though charges related to its merger with <a href="http://www.timhortons.com/us/en/index.php?utm_source=1851franchise.com&utm_medium=article&utm_campaign=restaurants-maintain-q3-sales-momentum-907" target="_blank" rel="nofollow" target="_blank">Tim Hortons</a> during the quarter swung the bottom line to a large net loss. 1851 Magazine compiled the following highlights of this week’s earnings reports so far.

Burger King

The Miami-based franchisor reported a net loss of $23.5 million, or negative 7 cents per diluted share, for the Sept. 30-ended third quarter, compared with a gain of $68.2 million, or 19 cents per diluted share, a year earlier. The company attributed that negative swing to charges related to the August transaction with Tim Hortons Inc., including a foreign-currency swap and two foreign-currency option contracts. Burger King recognized $141.8 million in operating expenses during the quarter due to the Tim Hortons merger.

Revenue rose 1.4 percent to $278.9 million, reflecting a 2.4-percent increase in global same-store sales growth. The chain’s United States and Canada division reported a 3.6-percent same-store sales gain, while its Asia-Pacific system led all areas of the world with a 4.1-percent increase. Burger King’s Europe, Middle East and Africa division also booked a 1.3-percent gain, while Latin America and the Caribbean reported a 3-percent decrease in same-store sales.

Texas Roadhouse

Louisville, Kentucky-based Texas Roadhouse reported a 10-percent increase in net income for the Sept. 30-ended third quarter, with a profit of $18.88 million, or 27 cents per diluted share, compared with $17.17 million, or 24 cents per diluted share, a year earlier.

Revenue rose 15 percent to $385.2 million during the period, reflecting same-store sales gains of 5.9 percent at company-owned restaurants and 5.2 percent at franchised locations.

“We are pleased to report another quarter of strong top-line growth, highlighted by solid traffic growth of 4.4 percent,” chief executive Kent Taylor said in a statement. “While we were challenged by higher commodity cost inflation, we delivered solid diluted earnings per share growth this quarter. As we move into the fourth quarter, we are pleased with our sales momentum, and our development is on track.”

The company forecasts positive sales growth and between 25 and 30 company-owned restaurant openings in 2015.

Red Robin Gourmet Burgers

Fellow casual-dining chain Red Robin Gourmet Burgers increased its third-quarter profit 54.6 percent to $7.21 million, or 50 cents per share, compared with $4.66 million, or 32 cents per diluted share, a year earlier.

During the Oct. 5-ended period, the Greenwood Village, Colorado-based brand increased its revenue to $267.4 million, a 15.9-percent gain over a year earlier. The chain reported a 0.9-percent increase in same-store sales, as a 2.3-percent decrease in customer traffic was offset by a 3.2-percent increase in average check.

Red Robin acquired 32 franchised restaurants during the quarter, giving it 402 company-owned units and 98 franchised units, as well as seven Red Robin Burger Works fast-casual restaurants.

1851 Franchise

The majority of publicly traded restaurant companies continue to shake off a lackluster winter with decent sales growth in the third quarter, leading to robust profit gains at Texas Roadhouse and Red Robin. Quick-service chain Burger King also booked a healthy increase in third-quarter comparable sa.....

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

Restaurants maintain Q3 sales momentum

restaurants-maintain-q3-sales-momentum

Woofie's

Woofie's Wraps Up 2025 With 25 Franchise Deals Signed, Expanding Into Major Metros Across the U.S.

woofies-pet-ventures-2025-franchise-growth-year-end-wrap

image of woofies franchise, the Full-Service Pet Care Franchise for Modern Pet Parents

Your Pet’s Life Is Busy, Too. Woofie’s Makes Care Easy

woofies-premium-pet-care-services

Woofie’s Is Building the Full-Service Pet Care Franchise for Modern Pet Parents and Authority Brands Is Accelerating the Momentum

woofies-franchise-opportunity

urSwim

image of urswim franchise Swim Lesson Model

Why urSwim’s Swim Lesson Model Is Built to Withstand Economic Downturns

urswim-recession-resilient-swim-school-franchise

America's Swimming Pool

image of americas swimming pool 2026 Owners Conference

America’s Swimming Pool Company Celebrates Franchise Growth and Excellence at 2026 Owners Conference

americas-swimming-pool-company-2026-franchise-conference

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

The Top 10 Low-Cost Franchises With High ROI 

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

ai-skilled-trades-authority-brands

The Penny Shortage Is Creating a New Risk for QSR Franchise Systems - 1851 Franchise

The Penny Shortage Is Creating a New Risk for QSR Franchise Systems

penny-shortage-restaurants-franchise-compliance

Large Domino’s Franchisee Files for Chapter 11 Bankruptcy

large-dominos-franchisee-files-for-chapter-11-bankruptcy

Design with Precision Garage Door Service team members

RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

rf-burlington-precision-garage-door-acquisition

Private Equity Fuels Jiffy Lube’s Next Chapter as Monomoy Strikes $1.3 Billion Deal

private-equity-fuels-jiffy-lubes-next-chapter-as-monomoy-strikes-13-billion-deal

Sparkle Dog Care Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: Sparkle Dog Care is a membership-based pet grooming franchise that blends wellness-focused hygiene services with small-box retail and community engagement.

sparkle-dog-care-franchise-costs-fees-profit-and-data

Amada Senior Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Amada Senior Care is a non-medical home care, assisted living placement, and related senior-support services with multiple revenue streams.

amada-senior-care-franchise-costs-fees-profit

Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

visiting-angels-franchise-costs-fees-profit

Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

newks-eatery-franchise-costs-fees-profit

How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

how-much-can-franchisees-make-a-guide-expert-tips

The linear sales funnel is dying. Prospective buyers are no longer filling out a form at first glance and waiting for the phone to ring. They’re doing the majority of the heavy lifting before they even make themselves known to the franchisor. For franchisors, this means one key thing: you must know exactly where candidates spend their time. No guesswork. And you have to adjust your strategy accordingly.And, in today's buyer world, the biggest buzz term is 2026's ride or die for franchise brands – Ai.&nbsp;If you are trying to sell a franchise today, you must meet candidates where they are (four walls, Ai, website, social advertising).&nbsp;Focusing on a strong digital footprint first and then lead generation will help the brand with validation and will lay the foundation for trust before the first conversation even happens. Still, franchisors must know where to find their candidates and be confident the candidates are being sent to the right place.“We consistently see the strongest lead performance from Google Search (paid and organic), social platforms such as Facebook, Instagram and LinkedIn and our franchise development website,” said&nbsp;<a href="https://www.linkedin.com/in/erinlsnyder">Erin Snyder</a>, head of franchise development at&nbsp;<a href="https://handelsicecream.com/handels-franchise/">Handel’s Homemade Ice Cream</a>. “Because all awareness and advertising efforts ultimately funnel candidates to our development site, maintaining a highly optimized, mobile-first web presence is critical for conversion.”<h2>The "Hidden" Channels: Authentic Research via AiSEO</h2>While Google and major portals are often where a candidate might start a broad search, the deep research happens in the shadows. This is where candidates scroll, mindlessly or otherwise, simply observing rather than clicking “apply” immediately; or, ask Ai chatbots about the best franchises to buy, the blind spots, the why nots, and, of course, the whys.Right now, Ai plays a key role in this research stage. Buyers want the truth.&nbsp;For franchisors, this means your content strategy must pivot. It is no longer enough to post stock photos of happy business owners. You must document the journey, showing the behind-the-scenes reality that proves your concept has staying power.<h2>The Pivot From Print to Digital Interactivity</h2>While print media has been a channel for franchise development in the past, its static nature has made it less effective as the buyer’s journey has shifted to digital. Buyers are generally looking for channels that will allow them to click, read and continue the search immediately.“Traditional print media has largely become a thing of the past for franchise development,” Snyder said. “What has been encouraging, though, is seeing many of these publications successfully pivot to digital formats that offer greater interactivity, stronger analytics and far better linkability than print ever could.”This creates a more dynamic experience for the candidate. In addition to a digital article, franchisors can embed a “day in the life” video, for example, or hyperlink a deeper dive on costs and profits for instant validation.This shift also allows franchisors to track return on investment more effectively. Instead of guessing if an article or ad worked, digital publications allow you to see exactly who clicked through, allowing for retargeting and smarter budget allocation.<h2>The Conversion Hub: Your Mobile-First Website</h2>Once a candidate has discovered you on Google, watched your videos on TikTok and read about you in a digital publication, they finally arrive at the destination: your franchise development website.This is the bottom of the funnel, where you will win or lose a candidate. Because all other channels point here, your website cannot just be a digital brochure. It has to be a conversion engine. And crucially, it must work perfectly on a smartphone.The question can’t just be “Do we have a website?” Questions about the website should surround usability and readability. Is navigation easy on a smartphone? Does the site load quickly? Is it readable? If a prospect has to pinch-and-zoom to read your investment costs and financial performance, they will leave.An optimized, mobile-first presence is critical because it serves as the collection point; all other awareness efforts funnel potential franchisees to the site. The user experience here should validate the trust built on other channels. However, accessibility is only half the battle; the content itself must be unsparingly open. The website is the channel where you must prove your value proposition with hard data.“Across all channels, the messaging needs to be clear, concise and consistent,” Snyder said. “Candidates should be able to easily find transparent investment ranges and financial requirements, a clear value proposition, compelling franchisee success stories, key differentiators from competitors and straightforward next steps for how to inquire.”When you treat your website as a transparency engine rather than a gatekeeper, you change the dynamic of the eventual sales call. A candidate who has already consumed your financial data and success stories arrives at the inquiry stage educated and qualified. This allows the development team to skip the basic fact-finding and move straight to strategy and fit.“When a candidate submits an inquiry, the first conversation should build on what the candidate has already learned,” Snyder said “ensuring they understand the opportunity they are considering, clarifying details, personalizing the discussion to their goals and moving them into a structured education process rather than starting from scratch.”<h2>Allocating the Budget: The "Ideal Candidate" Approach</h2>While a presence across multiple channels — from search and social to digital publications — is key, understanding exactly how much to invest in each option is the next hurdle. There is no single, magical approach to budgeting; a brand selling multi-million-dollar franchises needs to develop a presence in different places than a low-cost, mobile franchise will.To spend effectively, you must deeply understand your ideal franchisee profile. Once you know who is investing, you can begin working on where to find them. For example, a high-net-worth investor might be on LinkedIn and reading digital trade journals, while a first-time investor or someone seeking an owner-operator model might be influenced by local Facebook ads.“Franchisors should start by understanding their ideal franchisee profile and then allocate budget toward the channels where those prospects spend the most time,” Snyder said. “The mix will naturally look different for a high-investment, multi-unit candidate than for a first-time owner-operator. Beyond that, it’s critical to consider overall brand awareness and invest in channels that consistently get both the brand and the franchise opportunity in front of qualified prospects. A balanced approach that supports both awareness and lead capture tends to produce the strongest results.”<h2>Key Takeaways and Next Steps:</h2>Make sure you have a content footprint that answers the top 25 questions asked about your brand in Ai and Google searchs.Review your mobile experience: Open your franchise development site on your phone. If it takes more than three seconds to load or if the "Apply" button is hard to find, fix it immediately.Embrace "lo-fi" video content: You don't need a production crew. Use a smartphone to record "day in the life" videos with your franchisees and post them to social to build authentic trust.Ensure transparency and continuity:&nbsp;Candidates need to be able to find the information they’re looking for, and the experience should be consistent between a social page and a franchise development site. Make sure your value proposition is clear across all channels.Embrace innovation, but don’t count out the classics:&nbsp;Look at the whole picture. Many candidates are exploring opportunities on supplemental platforms like social media or in the results of a Google search, but they’re still looking at the franchise development site, too. Don’t confine yourself to the “old reliable” methods, but don’t leave them behind, either.Budget by persona, not platform: Don't just "do Facebook ads." Define exactly who your buyer is, and spend your money only on the channels where that specific person consumes content.For more information on franchise growth channels, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/how-to-use-social-media-marketing-to-promote-your-franchise-2727185#stories">How To Use Social Media Marketing To Promote Your Franchise</a></li><li><a href="https://1851franchise.com/building-a-franchise-website-that-converts-key-features-and-best-practices-2727363#stories">Building a Franchise Website That Converts: Key Features and Best Practices</a></li><li><a href="https://www.youtube.com/watch?v=vlfduHqGy7I">How to Sell Franchises | The Buyer Persona</a></li></ul>

To succeed in the shifting landscape, franchisors must understand the buyer’s journey, identify the ideal franchisee profile, and build a digital presence that meets candidates where they are.

Restaurants maintain Q3 sales momentum

MORE STORIES LIKE THIS