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 second quarter ended July 3, 2012.
Highlights for the Second Quarter 2012 Compared to the Second Quarter 2011:
- Total revenues increased 2.2% to $106.0 million from $103.7 million, reflecting a 3.0% increase in Company-owned restaurant sales, while manufacturing and commissary revenues decreased 7.2% due to recent commissary closures.
- System-wide comparable store sales increased +1.3%, the fifth consecutive quarter of positive trends.
- Net income was $3.0 million, or $0.17 per diluted share, which included $0.02 per diluted share for charges related to the strategic alternatives review process, compared to $3.1 million, or $0.18 per diluted share, which included gains of $0.03 per diluted share for the sale of two restaurants and the receipt of insurance proceeds.
- Outstanding indebtedness was reduced by $1.9 million since April 3, 2012 to $70.5 million.
- Adjusted EBITDA increased 13.7% to $11.0 million from $9.7 million. (*)
Jeff O’Neill, President and Chief Executive Officer, stated, “In addition to extending our track record of generating positive system-wide comparable store sales to five consecutive quarters, we also realized a 150 basis point improvement in store margins and a 13.7% increase in adjusted EBITDA in the second quarter. Our comparable store sales increase was driven through a combination of favorable product mix, pricing, and expanded catering sales, while the sequential improvement in traffic trends reflected the support for our new Smart Choices menu and expanded specialty beverage program. In addition, we are currently conducting a regional test focused on traffic building initiatives and, based on the positive response, have plans to roll this program through the balance of the year.”