HOUSTON Mexican Restaurants Inc. said increased commodity and utility costs, as well as slowed sales momentum because of "shrinking consumer discretionary spending," led to a fourth-quarter loss versus a year-earlier profit and an almost 51-percent drop in full-year earnings.
For the fourth quarter ended Dec. 31, the company reported a net loss of $1.0 million, or 30 cents per share, compared with a profit of $1.1 million, or 30 cents per share, for the same quarter a year earlier.
Corporate revenues for the company that operates or franchises 79 restaurants under seven brands dipped 1.2 percent to $20 million. Same-store sales for the quarter declined 8 percent, compared with a year-earlier same-store sales gain of 12 percent.
For all of fiscal 2006, Mexican Restaurants reported net income of $1.1 million, or 32 cents per share, down 50.9 percent from net income of $2.3 million, or 63 cents per share, for fiscal year 2005.
Revenues rose 5.3 percent to $82.3 million, which the company said was driven by the opening of two new restaurants, the full-year impact of one restaurant opened in fiscal 2005, and the acquisition of the two-unit Mission Burritos chain. Full-year systemwide same-store sales fell 1.2 percent, the company reported.
