Revenues were consistent at approximately $19.3 million for each period. The slight 0.3% increase in comparable restaurant sales for the second quarter of 2012 was comprised of a 4.1% increase in average check which was partially offset by a 3.8% decrease in entrée counts. This increase follows a comparable restaurant sales increase of 11.2% in the second quarter of last year. Operating weeks for the quarter remained consistent at 240 for both periods.
Restaurant-level EBITDA* increased 5.6% to $3.5 million in the second quarter of 2012 from $3.3 million in the second quarter of 2011, as the concept benefitted primarily from lower cost of sales and restaurant operating expenses partially offset by higher marketing and advertising costs as a percentage of revenues.
As of June 12, 2012, the Company owned and operated 32 restaurants across 18 states, including nine Del Frisco's Double Eagle Steak House, 20 Sullivan's Steakhouse, and three Del Frisco's Grille locations. During the second quarter, one Del Frisco's Grille was opened in Phoenix, Arizona.
The Company closed a Sullivan's in Dallas, Texas on June 30, 2012 and completed the sale of the underlying property to a third party shortly thereafter. On July 14, 2012, the Company opened a Del Frisco's Grille in Washington, D.C.
Del Frisco's Restaurant Group, Inc. is providing the following guidance for the full fiscal year 2012, which ends on December 25, 2012.
- Total comparable restaurant sales increase of 3% to 4%
- One Del Frisco's and three Del Frisco's Grille openings and one Sullivan's closing
- Cost of sales of 30.6% to 31.0% of consolidated revenues
- Restaurant-level EBITDA* of 23.3% to 23.8% of consolidated revenues
- Effective tax rate of approximately 31% to 32%
- Gross capital expenditures (before tenant allowances) of $30 million to $31 million
- Annual weighted average diluted common shares outstanding of approximately 20.6 million
The Company will host a conference call to discuss the financial results for the second quarter ended June 12, 2012 at 7:30 am central time today. Hosting the call will be Mark S. Mednansky, Chief Executive Officer, and Thomas J. Pennison, Jr., Chief Financial Officer.