Third Quarter 2013 Financial Results
Revenue Growth of 15.4%
Total revenue increased $11.8 million in the third quarter of 2013, or 15.4%, to $88.9 million, compared with $77.1 million in the third quarter of 2012. This increase was the result of new restaurants opened system-wide since the beginning of the third quarter of 2012, in addition to an increase in sales at our comparable base restaurants.
In the third quarter of 2013, comparable restaurant sales increased 2.4% for company-owned restaurants, increased 0.5% for franchise restaurants and increased 2.1% system-wide.
The company-owned comparable restaurant sales increase of 2.4% in the third quarter 2013 was comprised of a traffic increase of 0.7% and an increase in per person spend of 1.7%.
Adjusted Net Income
(2)Growth of 44.6%
Net income was $3.3 million in the third quarter of 2013, compared with net income of $0.1 million in the third quarter of 2012. Adjusted net income increased 44.6% to $3.3 million, from $2.3 million in the prior period.
Restaurant contribution margin decreased to 20.7% in the third quarter of 2013, compared with 21.0% in the third quarter of 2012. The decrease was primarily due to increased operating and occupancy costs, resulting from investment in supplies and smallwares related to our limited-time offering, repairs and maintenance, as well as expenses related to the increased number of new restaurants.
In the third quarter of 2013, we changed the manner in which we report marketing expenses between general and administrative expenses and other restaurant operating costs to more appropriately reflect only those costs directly related to restaurant-level marketing in other restaurant operating costs. Marketing costs previously reported as restaurant operating costs, that were not directly related to restaurant-level marketing, have been reclassified to general and administrative expense in all periods presented with no impact on income from operations. The reclassification by quarter is included in the accompanying financial data.