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SCOTTSDALE, Ariz., Feb. 10, 2011 (GLOBE NEWSWIRE) -- Kona Grill, Inc. (Nasdaq:KONA), an American grill and sushi bar, today reported results for its fourth quarter and fiscal year ended December 31, 2010.
Fourth Quarter 2010 Highlights
Opened a new Kona Grill in Baltimore, Maryland
Restaurant sales increased 11.2% to $22.2 million
Same-store sales increased 6.4%
Restaurant operating profit margin of 12.0%
"Our team delivered solid top-line results this quarter, including a 6.4% increase in same-store sales, helping us end the year on a strong note," said Marc Buehler, President and Chief Executive Officer of Kona Grill. "We have enjoyed increased momentum over the past several months, driven by various marketing and menu improvement initiatives.
"In fact, the fourth quarter of 2010 was also the fourth consecutive quarter in which we experienced positive traffic trends, which we believe demonstrates the strength and increasing popularity of our brand. We believe these strong results have laid the foundation for achieving profitability in 2011."
Fourth Quarter 2010 Financial Results
Restaurant sales increased 11.2% to $22.2 million from $20.0 million in the same year-ago quarter. The improvement reflects a 6.4% increase in same-store sales, as well as additional revenue from the new Kona Grill in Baltimore, Maryland, and incremental sales from the Company's Tampa, Florida restaurant opened in November 2009. This compares to flat same-store sales in the prior quarter and an 8.1% decrease in the fourth quarter of 2009.
Average weekly sales for the 21 restaurants in the comparable base were $70,900 during the fourth quarter of 2010, compared to $66,600 in the same year-ago period. Average weekly sales for restaurants not in the comparable base were $57,300 during the fourth quarter of 2010 versus $57,200 in the same year-ago period.
Net loss for the fourth quarter of 2010 was $0.5 million, or $0.05 per share compared to a net loss during the fourth quarter of 2009, excluding asset impairment and special charges, of $1.6 million, or $0.18 per share (see reconciliation of net loss excluding asset impairment and special charges below). Net loss for the fourth quarter of 2009 was $19.2 million, or $2.10 per share, including $16.9 million, or $1.85 per share, of non-cash asset impairment charges for underperforming restaurants and $0.7 million, or $0.07 per share, for special charges, including separation costs and legal fees associated with the Company's ongoing shareholder derivative suit.