Einstein Noah Restaurant Group Inc. reported on Thursday that its profit slipped 12.8 percent in the April 1-ended first quarter compared with the prior-year period.
The Lakewood, Colo.-based company also raised its capital expenditure guidance for the year to between $30 million and $35 million to reflect an acceleration of its remodeling program.
Michael Arthur, Einstein Noah’s interim president and chief executive, said in prepared remarks that a 12-unit remodeling initiative in the Orlando, Fla., market yielded a “profitable sales lift” on an average expenditure of $115,000 per store.
“We now plan to remodel at least 20 additional stores,” Arthur said, “and with continued success, we may remodel as many as 75 company-owned stores during 2014 to further enhance our brand image.”
As of April 1, the company had 862 Einstein Bros. Bagels, Noah's New York Bagels and Manhattan Bagel units open. Of those, 459 were company-owned, 115 franchised and 288 licensed. During the first quarter, Einstein Noah opened 13 restaurants, including one company-owned, three franchised and nine licensed.
1Q NET INCOME
Result: $2.1 million, or 11 cents per share% Decrease: 12.8% (from $2.4 million, or 14 cents per share)
1Q REVENUE
Result: $109.9 million% Increase: 3.3% (from $106.4 million)
1Q SAME-STORE SALES
% Increase systemwide: 1.6%
% Increase at company-owned units: 1.7%
Source: Company report
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