Granite City Food & Brewery Ltd. (OTCQB: GCFB), a casual dining restaurant group, today reported results for the third quarter ended October 1, 2013.
Highlights were as follows:
- Total restaurant sales increased 0.7% to $31.4 million for the third quarter of 2013 from $31.1 million in the third quarter of 2012
- Total restaurant sales increased 11.3% to $100.3 million for the first three quarters of 2013 from $90.1 million in the first three quarters of 2012
- Same store sales decreased 3.8% in the third quarter of 2013 over the third quarter of 2012
- Same store sales increased 0.4% in the first three quarters of 2013 over the first three quarters of 2012
- Company recorded approximately $6.1 million in Adjusted EBITDA in the first three quarters of 2013 compared to $5.4 million in the first three quarters of 2012
“This past quarter provided us with a number of challenges, both internally and externally,” commented Rob Doran, CEO. “During the third quarter we saw an overall softening of same-store-sales for the casual dining industry. This occurred shortly after we placed additional pressure on our field staff with a new menu roll-out. In general, the menu roll-out caused food and labor costs to increase as the kitchen executed new menu items and our servers spent additional time explaining new items to our guests and ensuring guest satisfaction. As a result, our sales and margins during the quarter fell below our internal expectations. The good news is that we believe we are now building back our margins to levels prior to the new menu roll-out as the restaurants and our guests become comfortable with the changes to our updated menu. However, a softer sales environment is expected to persist. Finally, we are very pleased to announce the opening of an additional prototype restaurant in Lyndhurst, Ohio. Although the sales figures are still very early, we are pleased with the opening and anticipate that this restaurant will be one of our stronger locations.”