These 6 National Chain Restaurants Face Possible Bankruptcy Because of the Pandemic

August 14, 2020
Bankruptcy

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Casual dining restaurant chains were already facing headwinds before the pandemic, but now some of the biggest in the industry are facing financial peril because of its impact, USA Today reports. A new report by S&P Global Market Intelligence has ranked the 6 publicly traded national chains most likely to financially default: 

  1. Dave & Buster's. According to the report, has a 16.1 percent chance of defaulting in the next year, and has the worst credit rating among the nation's largest restaurants. 
  2. Outback Steakhouse parent Bloomin' Brands. The report puts the odds of default at 13.2 percent. 
  3. Dennys. The all-day breakfast chain faces an 11.9 percent chance of default, with sales down 41 percent from this time last year.
  4. The Cheesecake Factory. The company faces an 11.7 percent chance of default, and famously stopped paying rent at the start of the pandemic.
  5. Applebee’s and IHOP. Both are owned by Dine Brands Global, and face an 11.3 percent chance of defaulting, with Applebees doing slightly better than IHOP. 
  6. BJ’s Restaurants. The pizza and beer chain faces a 9.3 percent chance of default, made worse once California ordered indoor dining to close down for the second time amid a coronavirus resurgence in the state