Einstein earnings ease 4% in second quarter

by Eric Schroeder
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LAKEWOOD, COLO. — Net income for the Einstein Noah Restaurant Group, Inc. fell 4% to $2,056,000, equal to 17c per share on the common stock, in the second quarter ended July 3, down from $3,080,000, or 18c per share, in the same period a year ago.

Total revenues of $105,993,000 were up 2% from $103,677,000 in the year-ago period.

For the six months ended July 3, net income was $6,160,000, or 36c per share, up 45% from $4,248,000, or 26c per share, in the same period a year ago. Total revenues for the six months were $210,866,000, up 3% from $204,922,000.

“In addition to extending our track record of generating positive system-wide comparable store sales to five consecutive quarters, we also realized a 150 basis point improvement in store margins and a 13.7% increase in adjusted EBITDA in the second quarter,” said Jeff O’Neill, president and chief executive officer. “Our comparable store sales increase was driven through a combination of favorable product mix, pricing, and expanded catering sales, while the sequential improvement in traffic trends reflected the support of our new Smart Choices menu and expanded specialty beverage program. In addition, we are currently conducting a regional test focused on traffic building initiatives and, based on the positive response, have plans to roll this program through the balance of the year.”

Mr. O’Neill added the company’s board of directors continues to review strategic alternatives to maximize shareholder value, but at this time has no update.

Einstein Noah plans to open 60 to 80 locations in fiscal 2012, including 8 to 12 company-owned restaurants, 12 to 14 franchise restaurants and 40 to 54 license restaurants. Capital expenditures for the full year are expected to range between $24 million to $26 million.

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