Fogo de Chão Inc. said Tuesday that same-store sales rose 3.5 percent in the U.S. in the fourth quarter ended Jan. 3, as the Dallas-based chain’s efforts to get customers to visit more often took hold.
Same-store sales were flat in the chain’s Brazil market, which has been hit hard by recession, and rose 2.8 percent for the full 41-unit chain.
“2015 was a great year for Fogo de Chão,” CEO Larry Johnson said in a statement Tuesday. He noted that the chain opened six U.S. locations last year, plus one unit in Mexico, and had its initial public offering in June.
Johnson said the chain’s same-store sales growth came from “initiatives we implemented to drive trial and frequency while at the same time growing our average check. We are also working diligently on growing our group dining platform as well as focusing on menu innovation and daypart expansion with our Gaucho Lunch and Sunday Brunch offerings.”
Revenue in the fourth quarter increased 12.8 percent, to $77.5 million, from $68.7 million, but factoring out an extra week, as well as a $5.3 million impact from foreign exchange rates, revenue rose 11.5 percent.
Net income nearly doubled to $12.9 million, or 45 cents per share, from $6.6 million, or 29 cents per share the previous year.
For the year, total revenue rose 3.6 percent, to $271.6 million, from $262.3 million a year ago. Net income increased 58.7 percent, to $27.9 million, or $1.06 per share, from $17.6 million, or 76 cents per share.
U.S. same-store sales for the year rose 2.7 percent, but in Brazil same-store sales fell 8.8 percent, due mostly to difficult comparisons from the year before, when the World Cup was held in the country.
Contact Jonathan Maze at [email protected]
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