Ignite Restaurant Group Inc., which earlier this week said it would sell its Romano’s Macaroni Grill concept, widened its loss in the fourth quarter, including special tax charges, the company reported Thursday.
The CEO for the Houston-based casual-dining operator said the proposed $8 million deal to sell Macaroni Grill to Phoenix-based Redrock Partners LLC would allow the company to focus on its other two brands, Joe’s Crab Shack and Brick House Tavern + Tap.
“While pleased with the 12 consecutive quarters of same-store sales growth at Brick House Tavern + Tap, I’m disappointed by the continuing sales pressure in Joe’s Crab Shack,” Ray Blanchette, Ignite’s CEO, said in a statement.
“With the divestiture of Romano’s Macaroni Grill announced earlier this week,” he said, “we will sharpen our focus on driving same-store sales growth at Joe’s and growing the national footprint of Brick House Tavern + Tap.”
During the fourth quarter, Ignite opened one company-owned Joe’s and one franchised Macaroni Grill. The company said 14 company-owned Macaroni Grill locations closed in the quarter, and 26 were closed in the fiscal year.
Three Macaroni Grill locations were being converted to Brick House restaurants, with two already open in Fort Worth, Texas, and Princeton, N.J., and a third to open in late March in Grapevine, Texas.
At the end of the fourth quarter ended Dec. 29, Ignite owned and operated 153 Macaroni Grill units, 139 Joe’s Crab Shack locations and 21 Brick House Tavern restaurants.
4Q NET LOSS
Result: -$48.5 million, -$1.89 per share(from -$4.4 million, or -17 cents per share)
4Q REVENUE
Result: $177.3 million% Decrease: 5.1% (from $186.8 million)
4Q SAME-STORE SALES
% Increase Brick House Tavern + Tap: 5.7%
% Decrease Joe’s Crab Shack: 4.5%
% Decrease Romano's Macaroni Grill: 2.8%
Source: Company report
FULL YEAR NET LOSS
Result: -$53.5 million, -$2.09 per share(from -$6.6 million, or -26 cents per share)
FULL YEAR REVENUE
Result: $837.2 million% Increase: 10% (from $760.8 million)
FULL YEAR SAME-STORE SALES
% Increase Brick House Tavern + Tap: 7.9%
% Decrease Joe’s Crab Shack 4.9%
% Decrease Romano's Macaroni Grill: 4.5%
Source: Company report
RELATED:
• Ignite to sell Romano's Macaroni Grill
• Ignite swings to profit in 2Q
• More restaurant finance news
Contact Ron Ruggless at [email protected].
Follow him on Twitter: @RonRuggless
