Bravo Brio Restaurant Group Inc. said on Wednesday that its same-store sales fell 5.7 percent at its two Italian chains as major storms closed numerous restaurants in its biggest market, Florida.
The Columbus-based operator of Bravo Cucina Italiana and Brio Tuscan Grille said hurricanes Irma and Harvey lowered its same-store sales by 140 basis points in the third quarter ended Sept. 24. Most of that impact came at Brio, which is heavily concentrated in Florida.
Brian O’Malley, the company’s CEO, called the third quarter “challenging” on the company’s earnings call Wednesday and said that the results missed the company’s expectations.
The company lowered its outlook for revenue, and earnings for the period. The company also said it now expects same-store sales to fall between 2.5 percent and 3.2 percent this year. It initially projected flat to down 2.5 percent.
The company’s stock was down about 2.5 percent in after-hours trading on Wednesday.
The company said that its restaurant level operating profit increased 11.8 percent to $8.8 million, from $7.9 million a year earlier, thanks to efforts the company took to reduce expenses in the period.
Revenue declined 6.2 percent to $88.7 million. Some of that was due to lower same-store sales, but the company also closed seven locations this year, including two in the third quarter.
The company also lost $2.4 million, or 16 cents per share. The company’s earnings met investors’ expectations for the period.
Same-store sales declined 2.7 percent at Bravo, including a 50-basis-point impact from Irma. Same-store sales declined 7.4 percent at Brio, including a 200-basis-point impact from Irma and Harvey.
The company operates 49 Bravo restaurants and 63 Brio locations.
Contact Jonathan Maze at [email protected]
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