Family-dining chain's same-store sales fall 3 percent
Bob Evans Farms Inc. said on Tuesday that its net income fell nearly 90 percent in the company’s fiscal fourth quarter ended April 29 as sales fell and labor costs increased.
Net income for the period was $580,000, or 3 cents per share, down from $5.6 million or 24 cents a year ago.
Same-store sales fell 3 percent in the period, worsening each month of the quarter from down 1.1 percent in February to a decline of 4.9 percent in April.
In addition, labor costs increased, the company said, due to higher minimum-wage rates and the company’s efforts to improve hospitality at its 540 restaurants.
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Bob Evans’ Restaurants reported an operating loss of $2.8 million, down from an operating income of $6.5 million a year ago.
“Fourth quarter same-store sales were in line with our expectations,” CEO Saed Mohseni said in a statement. He said the company made progress redesigning the restaurant menu and focusing on hospitality to ensure a better experience for customers.
Revenue at the company, which also operates a packaged food business, BEF Foods, rose 4 percent in the quarter to $345.6 million, up from $332.4 million.
Contact Jonathan Maze at [email protected]
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