This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Diversified Restaurant Holdings Reports Fourth Quarter Revenue Up 62.4%

Fourth Quarter Operating Results

Food, beverage, and packaging costs increased to $8.2 million in the fourth quarter of 2012 from $4.8 million in the prior-year period, primarily due to the opening of new restaurants along with the impact of increased commodity food prices and inflationary factors. The average cost per pound for bone-in chicken wings increased dramatically in 2012 compared with the average cost per pound in 2011. Food, beverage, and packaging costs as a percentage of sales were 31.4% and 29.9% in the fourth quarters of 2012 and 2011, respectively.

Compensation costs increased $2.5 million to $6.6 million in fourth quarter of 2012 from $4.1 million in fourth quarter of 2011 due to the increased staffing needs for the new restaurants. However, as a percentage of sales, labor costs improved to 25.3% in fourth quarter of 2012 from 25.7% in the prior-year period.

Net loss attributable to DRH in the fourth quarter of 2012 was $623,008, a decrease from net income of $528,293 in the same period of the prior year.

Full Year 2012 Review

Total revenue of $77.4 million for fiscal 2012 reflects $6.7 million that was attributable to revenue generated from the new locations that did not meet the criteria for same-store-sales reporting. In addition, $4.1 million was attributable to the eight BWW locations purchased in September 2012, and a $5.9 million increase in same store sales growth.

Operating expenses were up 32.8% in 2012, reflecting the addition of the new stores during the year.

DRH generated $1.6 million in operating profit in 2012, a decrease of $2.0 million compared with $3.6 million in 2011, primarily due to increased food, beverage, and packaging costs as a result of the number of restaurants operated and a 62.8% year-over-year increase in the average cost per pound for bone-in chicken wings. For fiscal 2012, net income attributable to DRH was $180,099, or $0.01 per diluted share, compared with net income of $1.8 million, or $0.10 per diluted share, in fiscal 2011.

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs