Company also announces retirement of president Randy Hicks
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Bob Evans Farms Inc. swung to a profit for its Jan. 24-ended third quarter despite taking a $7.2 million hit in sales related to severe winter weather, the company said Tuesday.
Adjusting for special items, however, the company’s net income declined by about 50 percent, to $7.8 million, or 30 cents per share, compared with $15.8 million, or 56 cents per share, a year ago.
The 563-unit chain said systemwide same-store sales declined 1.8 percent for the quarter, but the company estimates the weather impacted those results by about 3 percent. At 47 restaurants located in Florida, where the weather was not a factor, same-store sales rose 4.4 percent, indicating that recent turnaround efforts are taking hold, the company said.
Bad winter weather is likely also to negatively impact fourth quarter results, according to the company, which expects February same-store sales to fall 6.7 percent, with the weather showing about a 9-percent impact.
Unrelated to the report, the New Albany, Ohio-based company also announced the planned retirement of president Randy Hicks, who has been with the company for three decades. The company said Hicks will continue in his position for several months to facilitate the transition to new leadership, but a search for his replacement is underway.
3Q NET INCOME
Result: $5.7 million, or 22 cents per share
% Increase: 90% (from loss of $55.1 million, or -$1.96 per share)
3Q REVENUE
Result: $340.1 million
% Decrease: 22% (from $434.4 million)
3Q SAME-STORE SALES
% Decrease systemwide: 1.8%
Source: Company report
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