Einstein Noah Restaurant Group, Inc. (NASDAQ: BAGL), a leader in the quick-casual segment of the restaurant industry operating under the Einstein Bros.® Bagels, Noah's New York Bagels®, and Manhattan Bagel® brands, today reported financial results for the first quarter ended April 3, 2012.
In a separate press release also issued today, the Company announced that its Board of Directors has authorized a review of strategic alternatives available to the Company, including a possible business combination or sale of the Company, to maximize value for all stockholders.
Highlights for the First Quarter 2012 Compared to the First Quarter 2011:
- Total revenues increased 3.6% to $104.9 million from $101.2 million as Company-owned restaurant sales increased 4.1%.
- System-wide comparable store sales increased 1.1%, the fourth consecutive quarter of positive comparable store sales.
- Net income of $3.2 million, or $0.19 per diluted share, which included $0.02 per diluted share for restructuring expenses, compared to $1.2 million, or $0.07 per diluted share, which included $0.01 per diluted share for restructuring expenses.
- Reduced outstanding indebtedness by $1.9 million since January 3, 2012 to $72.3 million.
- Adjusted EBITDA increased 49% to $11.5 million from $7.8 million. (*)
Jeff O’Neill, President and Chief Executive Officer, stated, “We experienced a very strong start to 2012 with positive comparable store sales and significant growth in adjusted EBITDA and net earnings. Our new smart choices menu and expanded specialty beverage platform is helping to facilitate top-line momentum, while we substantially improved gross margins through our ongoing cost efficiency program and sales leverage. We are also capitalizing on greater catering sales, which experienced 19% growth during the period and will remain an important contributor to raising our average check on a go-forward basis. By successfully executing on our various sales growth and cost efficiency efforts, we think this should be a very exciting year for Einstein Noah.”