SCOTTSDALE ARIZ. Kona Grill upscale-casual chain is poised to add its fourth new branch and second on the East Coast this year, followed by six more in 2008. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
The American grill and sushi specialist, based here, which went public in 2005, disclosed Nov. 1 that it was raising about $10.6 million through a private placement of 650,000 shares of common stock at $16.25 per share. Kona Grill Inc. plans to use the proceeds for new restaurant development and general corporate expenses. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
Marcus Jondt, the company’s chairman, chief executive and president, said Kona Grill’s newest restaurant, opened in late October in Stamford, Conn., will be followed by one in Baton Rouge, La., in December. The Connecticut opening marked the chain’s East Coast debut and growth into an 11-state operation. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
Of the six openings planned for 2008, sites have been signed in northern Scottsdale and Gilbert, Ariz., West Palm Beach, Fla., and Richmond, Va., he indicated. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
Foodservice securities analyst Matthew DiFrisco of Thomas Weisel Partners has noted that Kona Grill’s $10.6 million infusion, “coupled with $11.5 million in cash and investments and growing cash flow from operations, should fund the expansion related capital expenditures into mid-2009.” —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
He further noted that the company was “on pace to spend a combined $35.5 million during 2006 and 2007 related to the opening of nine new restaurants, or roughly $4 million per store.” —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
In its August report of results for the six months ended June 30, the company gave an indication of its return-on-investment outlook by stating: “Our goal is for our new restaurants to generate average annual unit volumes of $4.5 million following 24 months of operations. We believe our typical new restaurants experience gradually increasing unit volumes as guests begin to discover our concept and we begin to generate market awareness.” —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
Management also has indicated to the investment community that the chain’s rate of expansion, though below what some observers would want, is not constrained by funding but rather by real estate considerations. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
Many of Kona Grill’s units are in or near shopping malls, and ideal sites are difficult to find, Jondt explained. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
The first Kona Grill opened in 1998 in Scottsdale. The company now has restaurants there and in Chandler, Ariz.; Denver; Naples, Fla.; Lincolnshire and Oak Brook, Ill.; Carmel, Ind.; Troy, Mich.; Kansas City, Mo.; Omaha, Neb.; Las Vegas; and Austin, Dallas, Houston, San Antonio, and Sugar Land, Texas. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
Each restaurant features a sushi menu and sushi bar, accented by a 2,000-gallon seawater aquarium, as well as an American grill-style menu. Signature items include macadamia nut chicken, sweet chile-glazed salmon and Big Island Meat Loaf. Dinner entrées range from $15.95 to $29.95. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
To keep up with food commodity prices, Kona Grill has taken two menu price increases this year, raising them about 2 percent at the beginning of the year and 3 percent at midyear, said Mark S. Robinow, chief financial officer for the chain. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
For the third quarter, which ended Sept. 30, Kona Grill’s net income was $400,000, eclipsing a loss of $500,000 for the same period last year. Revenue increased 39.1 percent to $19.2 million, from $13.8 million. Kona Grill credited the addition of four stores since October 2006 and higher menu prices for the increase. Same-store sales rose 4.9 percent over those of the prior third quarter. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
For the first nine months of 2007, Kona reported a 51-percent jump in revenue to $54.2 million, from $35.9 million in the same period of 2006. Net income for the latest nine months was $200,000, compared with a net loss of $1.7 million a year earlier. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
“Our same-store sales growth of 4.9 percent demonstrates the strength of the Kona Grill brand in spite of the challenging consumer environment,” Jondt said. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
In a later conference call with analysts, he added, “Like most restaurant companies we have higher costs of food and labor.” —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
He said some of those costs were easing, especially for seafood. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
To accommodate new stores next year, the company has created three districts for management, in the Midwest, Texas and Las Vegas, said Jason J. Merritt, Kona Grill’s chief operating officer and executive vice president. —Earmarking nearly $11 million from an equity sale in part toward accelerated expansion, the 17-unit
