PORTLAND Ore. McCormick & Schmick’s Seafood Restaurants Inc. posted declining revenue and same-store sales for its fourth quarter, but was able to keep its net income nearly even from a year ago, excluding special charges.
For the quarter ended Dec. 26, the company posted a net loss of $16.1 million, or $1.09 per share, which included $19.8 million in impairment charges for eight underperforming restaurants. In the same quarter a year earlier, McCormick & Schmick’s posted a net loss of $73.4 million, or $4.99 per share, when it booked a $54.4 million charge related to the impairment of trademarks, a $26.2 million charge related to the impairment of goodwill and a $2.8 million charge against two restaurants, among other items.
Excluding charges, the company’s pro forma net income totaled $2.8 million, or 19 cents per share, for the fourth quarter, compared with year-ago pro forma earnings of $2.4 million, or 16 cents per share.
Latest-quarter revenue fell 9.7 percent to $89.2 million, which reflected a same-store sales decline of 12.9 percent, including a 7-percent traffic drop.
McCormick & Schmick’s operates 94 restaurants, including 88 restaurants in the United States and six restaurants in Canada under The Boathouse brand.
For the full year, McCormick & Schmick’s recorded a net loss of $14.7 million, or $1.00 per share, versus a loss of $69.6 million, or $4.73 per share, in 2008, when the company recorded $83.9 million in charges. Fiscal 2009 revenue fell 7.8 percent to $360.1 million. Annual same-store sales declined 15.7 percent.
After a difficult 2009, which was the case for most high-end restaurants, the company said it expects 2010 to remain challenging, but that it will open at least two new locations, one in West Palm Beach, Fla., which opened this month, and the second in Houston, which is expected to open in the second quarter.
Contact Sarah E. Lockyer at [email protected].
