5 Napkin Burger to open at Union Square
New York City — Winick Realty Group said that 5 Napkin Burger, the popular burger chain that’s opened three New York locations since 2003, has leased its fourth location at 150 East 14th Street, on the southwest corner of Third Avenue.
The restaurant includes 3,570 sq. ft. of ground-floor space, as well as a full basement. The new location is slated to open in April.
Gap Q4 profit beats forecasts
San Fransciso — Gap credited rising sales abroad, online and at its Banana Republic and Old Navy chains for helping to boost its fourth-quarter net income rise 3.7%, beating analysts expectations. However, the chain issued an annual profit forecast that fell short of expectations, saying its operating profits would be squeezed as it grapples with soaring costs of cotton and other raw materials.
Gap also announced that it plans to buy back $2 billion in shares, on top of recent repurchases totaling $2.6 billion.
The retailer reported quarterly net income of $365 million, compared with $352 million. Revenue rose 3% to $4.36 billion. Overall same-store sales were flat.
In the company’s struggling namesake Gap division in North America, same-store sales fell 2%. The figure has been falling on an annual basis for the brand since 2005.
Same-store sales rose 1% at Banana Republic’s and Old Navy’s domestic divisions.
Chairman and CEO Glenn Murphy said during a conference call with investors Thursday that all three brands need to improve in North America.
The company has been expanding globally, adding its first stores in China and Italy last year and it now sells its merchandise online in more than 90 countries. It also is continuing to remodel Old Navy stores with the goal of having nearly 400 in a new format by year’s end.
The company plans to open about 50 company-owned stores abroad, including units in China and Italy. On the domestic front, Gap’s plans include adding eight to 10 Athleta stores in North America by the end of the year.
The company said it earned $1.2 billion overall for the full year, compared with $1.1 billion the year before.
Wal-Mart de Mexico to open 445 stores in 2011
New York City — Wal-Mart de Mexico SAB (Walmex) plans to increase investment by 45% in 2011 from last year as it expands its business in Mexico and Central America, Bloomberg reported.
Capital expenditures will increase to 18.97 billion pesos ($1.56 billion) this year, CEO Scot Rank said in remarks broadcast on the company’s website.
Wal-Mart de Mexico, which now operates more than 2,000 retail stores and restaurants, plans to open 445 stores in 2011. It will open 365 of the new businesses, mainly warehouse and discount stores, in Mexico. Walmex plans to open 80 stores in Central American nations.