NASHVILLE Tenn. Casual-dining operator O’Charley’s Inc. said Thursday that same-store sales at the company’s three brands fell as consumer spending remained weak in the third quarter. Its corporate net loss narrowed, however, as it lapped nearly $50 million in impairment charges in the year-ago third quarter.
For the three months ended Oct. 4, O’Charley’s posted a net loss of $2.5 million, or 10 cents per share, compared with a net loss of $66.8 million, or 3.29 per share, in the same quarter a year ago.
O’Charley’s, which is the parent company to 373 restaurants under the Stoney River Legendary Steaks and Ninety Nine Restaurants brands, also reported a 7.4 percent decline in revenue to $194.1 million.
Same-store sales fell 7.6 percent at the O’Charley’s brand and 7.1 percent at the Ninety Nine Restaurants chain. The Stoney River upscale steakhouse brand experienced the steepest same-store sales drop at 17.1 percent.
“This continues to be a challenging environment for casual-dining companies, and like most of our competitors we experienced a decline in same-store sales during the quarter,” said Jeffrey D. Warne, the company’s president and chief executive. “Based upon our same-store sales in the quarter … we did not see signs of sequential improvement in consumer restaurant spending as the quarter progressed.”
Warne added that the company’s food and labor costs were well controlled, and that he intended to drive future sales by “differentiating our brands through innovative and value-oriented food and beverage offerings, and enhancing guest service.”
Contact Elissa Elan at [email protected].
