Unlimited shrimp promotion leads to price increase

  • Red Lobster’s promotion called Ultimate Endless Shrimp was too successful
  • The promotion offered unlimited shrimp for $20
  • The promotion brought in more traffic and competitors lost market share
  • The proportion of people selecting the promotion was higher than expected
  • The price has been raised to $25 to maintain profitability
  • Red Lobster is forecasted to lose 700 million Thai baht in 2023

Red Lobster’s promotion called Ultimate Endless Shrimp was a huge success, bringing in more traffic and causing competitors to lose market share. However, the proportion of people selecting the promotion was higher than expected, leading to a price increase. The price has been raised from $20 to $25 to maintain profitability. Red Lobster is forecasted to lose 700 million Thai baht in 2023, an improvement from the previous year’s loss of 1.2 billion baht.

Factuality Level: 7
Factuality Justification: The article provides information about Red Lobster’s promotion and its impact on the company’s financials. The information is sourced from a conference call transcript and includes quotes from the CFO. However, the article lacks additional context and analysis, such as the overall financial performance of Red Lobster and the potential long-term effects of the promotion. It also does not provide any counterarguments or perspectives from other sources.
Noise Level: 3
Noise Justification: The article contains some relevant information about Red Lobster’s promotion and its impact on the company’s financials. However, it also includes irrelevant information about the ownership of Red Lobster and Chicken of the Sea. The article lacks scientific rigor and intellectual honesty as it does not provide any evidence or data to support its claims. Overall, the article is filled with filler content and does not provide actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: Red Lobster, Thai Union Group
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the financial performance of Red Lobster and its impact on Thai Union Group. There is no mention of an extreme event.
Public Companies: Red Lobster (N/A), Thai Union Group (TU)
Private Companies: Chicken of the Sea
Key People: Ludovic Garnier (CFO)

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Reported publicly: www.marketwatch.com