Country Style Cooking Restaurant Chain Co., Ltd (NYSE: CCSC) ("Country Style Cooking" or the "Company"), a fast-growing quick service restaurant chain in China, today announced preliminary fourth quarter 2012 results.
For the fourth quarter ended December 31, 2012, the Company opened 21 restaurants, bringing the total net restaurant count to 256, compared to a total restaurant count of 199 as of December 31, 2011. The new openings include five quick-service, canteen-style restaurants which Country Style Cooking operates under the brand name "Mr. Rice." Management has been pleased to observe how the Mr. Rice line of restaurants continues to build in popularity with customers.
While absolute store numbers have increased to the level expected, stores have opened at a slightly slower-than-expected rate, leading to fewer operating months for generating revenue. Thus, the Company currently anticipates to report figures slightly below the bottom range of its previous revenue guidance of RMB300 million ($47.7 million). The Company expects positive net income for the fourth quarter although it had to contend with such pressures as a seasonally slow period, higher raw material costs and increases in other operating expenses. Same store sales growth in the fourth quarter saw minor improvement over the third quarter. Management aims to further improve SSS growth throughout 2013.
The Company plans to report its fourth quarter and full year 2012 results in early March, at which time management intends to discuss 2012 financials and strategies for 2013 in more detail.
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