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Restaurant Industry News |
Tuesday December 2nd, 2008 |
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BUCA, Inc. Comparable Restaurant Sales Increase 0.2% |
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BUCA, Inc. Announces First Quarter Fiscal 2007 Earnings |
BUCA, Inc. (Nasdaq: BUCA) today announced financial results for the first fiscal quarter of 2007. The Company reported a net loss of $2.8 million, or ($0.14) per share, in the first quarter of fiscal 2007 as compared to net income of $1.3 million, or $0.06 per share, in the first quarter of fiscal 2006. Net loss from continuing operations was $2.6 million, or ($0.13) per share, in the first quarter of fiscal 2007 as compared to net income of $1.1 million, or $0.05 per share, in the same period in the prior year.
Wallace B. Doolin, the Company's Chairman and Chief Executive Officer commented, 'I am disappointed with the results of a very difficult first quarter. We continue to face a number of challenges. Foremost is improving our average unit volumes and this was quite evident with revenues for the quarter being $2.0 million less than those of the first quarter of fiscal 2006. Additionally, we experienced an increase of approximately $600,000 in costs primarily related to minimum wage increases as well as the costs of staffing 52 additional restaurants for lunch, both of which put pressure on our initiatives to improve labor expense. We are acutely aware of the need to make adjustments to return to a path of improving our results.
On a positive note, I am pleased that we were able to deliver positive comparable restaurant sales for the quarter, representing our tenth consecutive quarter of positive comparable restaurant sales and once again we exceeded the industry average as measured by Knapp Track.' Mr. Doolin added, 'We are pleased with the customer response to the roll-out of lunch throughout the system, the continued increases in sales of Buca To Go and the success of our E-Club.'
First Quarter 2007 Results
Total restaurant sales in the first quarter of fiscal 2007 were $62.8 million compared to $64.8 million in the first quarter of fiscal 2006. The decrease in restaurant sales was primarily the result of the absence of the New Years Eve holiday in the current fiscal quarter as well as the loss of several operating days due to inclement weather and the closure of one restaurant.
For the first quarter of fiscal 2007, comparable restaurant sales increased 0.2%.
Total restaurant costs in the first quarter of fiscal 2007 were $59.3 million as compared to $58.7 million in the same period of the prior year. As a percentage of restaurant sales, these costs were 94.5% for the first quarter of fiscal 2007 as compared to 90.5% in the first quarter of fiscal 2006. The increase in restaurant costs was primarily due to softer than anticipated sales and increased labor costs related to higher minimum wage as well as the staffing for lunch service at additional restaurants.
General and administrative expenses were $5.6 million in the first quarter of fiscal 2007 as compared to $4.3 million in the first quarter of fiscal 2006. General and administrative expenses as a percentage of restaurant sales were 8.9% in the first quarter of fiscal 2007 as compared to 6.5% in the comparable period of fiscal 2006. The results for the first quarter of fiscal 2006 included the Company's receipt of a $1.8 million insurance settlement.
Interest expense in fiscal quarter of first 2007 was $0.6 million as compared to $0.7 million in first quarter of fiscal 2006. The decrease was primarily related to a reduction in long-term debt.
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