CHICAGO Morton’s Restaurant Group reported a wider net loss in the fourth quarter on impairment charges and declining sales at its high-end steakhouse chain.
For the Jan. 3-ended quarter, Morton's recorded a net loss of $66.9 million, or $4.21 per share, which reflected charges related to impaired assets, the settlement of wage-and-hour claims, and severance for former chief executive Thomas J. Baldwin, who resigned Feb. 2. In last year's fourth quarter, Morton's posted a net loss of $7.6 million, or 48 cents per share.
Fourth-quarter revenue fell 9.4 percent to $79.2 million, due in large part to an 11.6-percent decrease in same-store sales. Adjusting for the extra week in the year-ago fourth quarter, same-store sales would have decreased only 5.3 percent, the company said.
During fiscal 2009, Morton’s closed six steakhouses and one Bertolini’s restaurant, while selling the one remaining Bertolini’s unit it owned. The company opened two steakhouses and entered into a lease agreement for another.
“There is no question that 2009 presented one of the most challenging economies in our 31-year history,” said Christopher J. Artinian, Morton’s new president and chief executive. “The weakened economy resulted in huge downturns in business travel, conventions, entertaining and spending in general, which adversely impacted our industry.”
Artinian added, however, that same-store sales began to increase modestly in December 2009 and into the new year, making him optimistic that Morton’s could capitalize on its cost-management efforts.
For the full year, Morton’s recorded a net loss of $79.6 million, or $5.01 per share, compared with a loss of $67.7 million, or $4.21 per share, in fiscal 2008.
Full-year revenue fell 14.7 percent to $281.1 million, the company said, mostly due to a 19.5-percent decrease in same-store sales. Excluding the impact of an extra week in 2008, same-store sales for fiscal 2009 would have decreased 18 percent.
Morton’s projected that fiscal 2010 revenue would range between $291 million and $296 million, accounting for a targeted same-store sales increase of 2 percent to 4 percent. Per-share earnings are expected to range between 25 cent and 30 cents for fiscal 2010, Morton’s said.
As March 3, Morton's operated 76 namesake steakhouses in 27 states and Puerto Rico as well as five international locations.
Contact Mark Brandau at [email protected].
