COLUMBUS Ohio Bob Evans, appetizers may be part of the answer. —At
The question is how to create excitement among recession-weary guests and drive profits through menu items that are low-cost and high-margin and buck the image of family-dining chains as out of touch with culinary and consumer trends. —At
Like other family-dining players, Bob Evans, a 570-unit chain based here, recently has kicked up its efforts to lure back lapsed users and attract new ones through retooled marketing efforts and new, lower-priced menu items. —At
In May, for the first time in Bob Evans’ 45-year operating history, a selection of appetizers was introduced systemwide. Starting at $3.99, the items include apple pie fries, fried cheese bites, a trio of bite-sized sandwiches and baked-potato bites. At the same time, the chain debuted a value-driven menu of 30 “Real Meals” for $5.99 for the summer. —At
(To view charts featured in this week's financial pages, click here) —At
Observers were optimistic that the new line of starters would contribute beneficially to Bob Evans’ numbers. —At
“We think the introduction of appetizers has the potential to add incrementally to both comps and margins,” analyst Stephen Anderson at MKM Partners in Greenwich, Conn., said in a report. “Based on the strong reception to the new appetizers we saw in our recent Midwest checks, we think this potentially may be a permanent menu addition providing sustained high margins.” —At
A focus on high-margin menu items helped Bob Evans through its latest fiscal year, ended April 24. Limited-time menu promotions such as the BoBurrito and Big Farm Salads, which have a comparatively low food cost component, helped Bob Evans post a 100-basis-point, or 1-percent, decrease in cost of sales for its latest quarter, Anderson said. —At
In addition to adding new menu items, Bob Evans found ways to rein in labor, procurement, energy and preopening expenses, leading to a 1.2-percent boost in operating margins, company officials said. —At
Earlier this month, investors rewarded Bob Evans Farms Inc.’s stock. The stock price rose 26 percent for the week ended June 5 to close at $32.51, not far from its 52-week high, which is $34.44 per share. Its 52-week low is $12.51 per share. —At
The majority of the week’s gain came from a 15.8-percent stock surge on June 3, after the company beat Wall Street expectations for its fiscal fourth-quarter earnings. —At
Bob Evans, which also is the parent to the 144-unit Mimi’s Cafe casual-dining chain as well as a producer and distributor of pork sausage and convenience food items, reported that earnings rose 31 percent to $21.1 million, or 69 cents per share, for the quarter ended April 24, up from earnings of $16.1 million, or 52 cents per share, in the same quarter last year. Analysts on average had predicted earnings of 39 cents per share, excluding onetime items, for the company’s latest quarter, according to Thomson Financial. —At
“We delivered very strong fourth-quarter results in our restaurant segment, due primarily to new labor management systems and effective supply chain management, which have reduced labor and food costs at our restaurants,” Bob Evans chairman and chief executive Steve Davis said in a statement. —At
Fourth-quarter corporate revenue fell 1 percent to $431 million, mostly on a decrease in the company’s restaurant segment sales, which fell 2 percent to $354.5 million. Same-store sales fell 1.6 percent at Bob Evans and 7.1 percent at Mimi’s. —At
For the full year ended April 24, Bob Evans posted a net loss of $5.1 million, or 17 cents per share, versus a profit of $64.9 million, or $1.95 per share, last year. The fiscal 2009 results included $75.3 million in net charges, including goodwill impairment and other charges for Mimi’s Cafe, the company said. —At
Annual revenue rose 1 percent to $1.75 billion.— [email protected] —At
