The restaurant industry has been seriously affected by the coronavirus pandemic and now a new report is disclosing which national chains are in the most danger of defaulting on their loans.
While large publicly traded companies face a less than 20% chance of defaulting on their loans, the report by S&P Global Market Intelligence lists which are facing the most financial peril.
According to the S&P report, Dave & Buster's, Denny's and Bloomin’ Brands Inc., the parent company of Outback Steakhouse, are the three most in danger of defaulting on their loans.
Dave & Buster's has a 16.1% likelihood of defaulting, while Bloomin' Brands stands at a 13.2% chance and Denny's at 11.9%.
According to “Today,” a rep for Dave & Buster’s didn’t not return a request for a comment.
A spokesperson for Bloomin’ Brands responded to the outlet in an email by downplaying the S&P report saying it "mischaracterizes our strong financial health and recent sales performance."
While Denny’s said they remain “optimistic” about their future.
“We are confident in our strategy, the overall improvement in both industry and brand results, and the strength of our balance sheet,” a Denny's spokesperson said in a statement to Fox Business. “Moving forward we firmly trust in our brand’s ability to weather this storm.”
The Cheesecake Factory and Dine Brands Global, which owns Applebee's and IHOP, rounded out the top 5 list of chains most likely to default on their loans.
According to the report, Cheesecake Factory has a 11.7% chance of defaulting, while Dine Brands stands at 11.3%.
Although the Cheesecake Factory declined to comment, a spokesperson for Dine Bands also expressed confidence in their future.
"We remain optimistic about the overall marked improvement in industry sales and traffic data since April, and are confident in our long-term strategy and ability to quickly adapt to the ever-changing industry landscape,” a rep told “Today.”
On the plus side, Chipotle, McDonald’s and Wingstop were the least likely to default on their loans, per the report.