Skip navigation
Fogo de Chao 2Q profit falls 32.7%

Fogo de Chao 2Q profit falls 32.7%

Company cites exchange rates, World Cup sales comparison in first earnings report since IPO

Fogo de Chao Inc. reported a 32.7-percent decrease in net income in the second quarter ended June 28 — its first earnings report as a public company — reflecting foreign currency exchange rates and a strong sales comparison from the 2014 World Cup in Brazil, the company said Tuesday.

The Dallas-based Brazilian casual-dining chain reported second-quarter profit of $2.5 million, or 10 cents a share, a decrease from $3.7 million, or 16 cents a share, in the prior-year quarter. Revenue fell 0.5 percent, to $68.2 million, from $68.5 million in the same period last year.

U.S. same-store sales rose 4.2 percent in the quarter, compared with an increase of 3.3 percent in the same period a year ago.

Fogo de Chao completed its initial public offering on June 24, raising $91.3 million in net proceeds.

"We are pleased with our strong second-quarter results, particularly our comparable restaurant sales growth in the U.S. of 4.2 percent and the strength of our development pipeline,” Fogo de Chao CEO Larry Johnson said in a statement.

The company has said it is committed to increasing its restaurant count by more than 10 percent annually.

“Total sales growth was 11 percent for the quarter when you adjust for foreign currency and lapping the 2014 World Cup in Brazil,” Johnson said. “We continue to make progress on our 2015 development plan, opening a second location in Rio de Janeiro, near the 2016 Summer Olympics venue, and our first joint-venture location in the high-end Polanco area in Mexico City.”

Johnson said the company expects to open three more restaurants in 2015.

Fogo de Chao opened its first restaurant in Brazil in 1979. It now operates 26 units in the United States, 10 in Brazil and one joint-venture restaurant in Mexico.

Contact Ron Ruggless at [email protected].
Follow him on Twitter: @RonRuggless

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish