Perkins & Marie Callender’s Inc. reported a wider first-quarter net loss tied to falling customer traffic at both of its family-dining chains.
For the quarter ended April 18, the company's net loss increased to $14.6 million from a year-ago net loss of $9.8 million.
Latest-quarter revenue declined 7.9 percent to $155.8 million, compared with $169.2 million a year earlier. Same-store sales fell 8.7 percent at corporate Marie Callender’s restaurants and dropped 5.7 percent at corporate Perkins units, which the company blamed on "continued difficult economic conditions."
Perkins & Marie Callender's noted that while sales were down at its Foxtail baked-goods manufacturing division, income in that segment increased nearly 33 percent to $641,000, largely because of an increase in licensing revenue, improved margins, and lower manufacturing and administrative expenses.
“During the first quarter of 2010, we have continued to focus on the fundamentals in a challenging business environment, namely by offering high-quality food at a great value without compromising on service, managing our costs, maximizing productivity at Foxtail and targeting our marketing efforts,” J. Trungale, president and chief executive of Perkins & Marie Callender’s, said in a statement.
Trungale said the company would open 10 franchised restaurants this year and work to build business at Foxtail.
At the end of the quarter, the Memphis, Tenn.-based company operated 163 Perkins restaurants and 77 Marie Callender's restaurants and franchised 315 Perkins, 37 Marie Callender's and one Marie Callender's Grill. The company also operates two Callender's Grills, an East Side Mario's restaurant and 12 Marie Callender's units under partnership agreements.
Contact Elissa Elan at [email protected].
