Benihana Shares Jump On 4Q Restaurant Sales

NEW YORK (AP) — Shares of Benihana Inc. jumped Tuesday after the Japanese restaurant chain said its fiscal fourth-quarter restaurant sales rose slightly above expectations.

The stock rose 49 cents, or 17.5 percent, to $3.29 in late afternoon trading after reporting sales of $73.6 million in the quarter ending March 29, up 5.4 percent from a year earlier. Meanwhile, same-store sales, a measure of sales at restaurants open at least one year, declined 10.4 percent.

Analysts polled by Thomson Reuters expected the company to post revenue of $73.5 million.

The biggest improvement was at the company's RA Sushi Bar chain, where same-store sales fell just 1.2 percent. The company plans to open three RA Sushi restaurants next quarter.

KeyBanc Capital Markets analyst Brad Ludington said in a note to investors that a renewed focus on cost controls at both the corporate and restaurant levels will lift the company's fourth-quarter earnings. The analyst maintained a "Hold" rating, citing a continued weak operating environment.

The company said in a statement that its overall guest counts are beginning to stabilize and could improve going into fiscal 2010, which CL King & Associates analyst Michael Gallo called "encouraging." He rated the stock "Strong Buy."

For the year, Benihana's total restaurant sales rose 2.9 percent to $303.9 million, while comparable restaurant sales fell 8 percent.