HOUSTON Mexican Restaurants Inc., parent to the Case Ole, Mission Burrito and other concepts, said the dismal economy and the effects of swine flu hurt its same-store sales and profit in the second quarter.
For the quarter ended June 28, Mexican Restaurants reported a net loss of $207,937, or 6 cents a share, compared to net income of $359,059, or 11 cents a share, in the same quarter a year ago. Revenue in the latest quarter fell 3.4 percent to $18.1 million.
The company said same-store sales fell 6.6 percent at corporate stores and 1.2 percent at franchised units.
“Sales and profit performance during the second quarter of 2009 [were] certainly disappointing but not surprising given the impact of the troubled economic environment and of the swine flu on consumers’ discretionary spending habits,” Curt Glowacki, chief executive of Mexican Restaurants, said in a statement.
During the second quarter, Mexican Restaurants sold its operating assets and liabilities in the five-unit La Senorita restaurant chain in Michigan for about $2.6 million. Proceeds from the sale were used to pay down long-term debt. The buyer was Indiana-based Hacienda Mexican Restaurants.
In late June, Mexican Restaurants amended its credit agreement with Wells Fargo Bank N.A., primarily to extend the maturity date from next year to June 29, 2012.
Mexican Restaurants operates and franchises 73 restaurants, of which 54 are company owned, 17 franchised and two licensed.
Contact Ron Ruggless at [email protected].
