Bob Evans Farms

(BOBE)

dropped 5% early Wednesday after the restaurant chain said same-store sales fell 5.6% in July.

The company also said it expects first-quarter earnings of 36 cents a share, compared with 20 cents a share last year. The results include a 5 cent a share gain on the sale of restaurant assets and a 5 cent a share charge related to stock option and performance-incentive expenses. Analysts polled by Thomson First Call were expecting first-quarter earnings of 37 cents a share.

"We are not pleased with July same-store sales at Bob Evans Restaurants, especially the declines we have seen at dinner," the company said. "However, our overall profitability for the first fiscal quarter was improved from a year ago."

Shares slid $1.46 to $26.71.

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