What is in this article?:
- Einstein Noah to focus on lunch, catering
- 4Q profit falls, sales rise
Executives blamed sales softness on the payroll tax increase and other pressures on consumer discretionary income.
4Q profit falls, sales rise
Net income for the quarter ended Jan. 1 was $3.2 million, or 18 cents per share, which included about $3 million, or 15 cents per share, for the completion of a strategic alternative review process and settlement expenses. Last year the company looked into alternatives such as a possible merger or sale, but in the end recapitalized existing loans.
That was a 48-percent decline compared with a year ago, when net income was $6.1 million, or 36 cents per share, which included the extra week and restructuring expenses related to the closure of five food commissaries.
Systemwide same-store sales during the quarter increased 1.4 percent, the highest of the year, boosted by a 3.9-percent increase in average check that included a 1-percent menu price hike coupled with growth from catering and specialty beverages.
Same-store sales at company-owned restaurants rose 1.1 percent, and they increased 2.2 percent at franchised and licensed restaurants for the quarter.
Revenue decreased 3.9 percent to $110.6 million, including an extra week in the fourth quarter of 2011 that accounted for about $7.3 million in revenues. Excluding that week, revenue increased 2.6 percent for the quarter.
The company opened 55 restaurants during 2012, ending the year with 816 units across 39 states, of which 461 were company-owned.
In 2013, Einstein Noah expects to add 60 to 80 units, including 15 to 20 company-owned restaurants, 15 to 20 franchised, and 30 to 40 licensed units.
For the year, net income was $12.7 million, or 74 cents per share, compared with $13.2 million, or 78 cents per share, in fiscal 2011.
Same-store sales rose 1 percent for the year, and revenue increased 0.8 percent to $427 million from $423.6 million. Excluding the extra week, revenue rose 2.6 percent.