Perkins & Marie Callender’s Inc. widened its net loss for the second quarter as sales continued to tumble at both of its full-service brands.
For the July 11-ended quarter, Perkins & Marie Callender’s posted a net loss of $11.1 million, compared with a loss of $5.8 million in the year-ago period.
Revenue declined 6.3 percent to $114.2 million, which reflected same-store sales declines of 5.1 percent at Perkins and 5.6 percent at Marie Callender’s.
At Foxtail, the company’s baked-goods manufacturing arm, sales for the quarter decreased $2 million.
J. Trungale, Perkins & Marie Callender’s president and chief executive, blamed the company's performance on the ailing economy.
“While the difficult economy continues to negatively impact away-from-home dining trends, increased franchise activity since the second quarter is encouraging, as are overall steady sales margins and improved pie manufacturing efficiencies at Foxtail,” he said.
The company said it has opened five franchised Perkins restaurants plus one corporate and two franchised Marie Callender’s stores since the beginning of the year.
“We will continue our efforts to hold margins and improve store level execution for the Perkins and Marie Callender’s brands, while simultaneously focusing on the strategic development of both concepts,” Trungale said.
Perkins & Marie Callender’s Inc. operates or franchises 482 Perkins restaurants and 113 Marie Callender’s stores. It also has licensing agreements for 12 Marie Callender’s operations and owns two Callender’s Grills and one East Side Mario’s restaurant.
Contact Elissa Elan at [email protected].
