August 29, 2005

Chain Update

Outback Steakhouse and Sonic are among the chains that reported significant financial or operational news in recent weeks.

• Outback Steakhouse released its same-store sales results for the four-week period that closed on Aug. 20. System-wide, Outback units posted a 0.1% decline in same-store sales vs. the year ago period. Company-owned Outback restaurants reported a 0.4% decline, while franchised and joint-ventured stores posted a 1.5% increase in same-store sales for the period. Carrabba’s Italian Grills reported an 8.2% same-store sale increase, while Bonefish Grills posted an increase of 9.6% compared to the same period a year earlier.
• Sonic announced an agreement to purchase 15 of its franchise restaurants in a deal set to close by Sept. 1. Neither the purchase price nor the seller was disclosed.
• Papa John's International Inc. announced that its domestic system-wide same-store sales for the four-week period that closed Aug. 21 increased by 5.4%. Same-store sales at company-owned units grew by 10.1%, while franchised stores posted a 3.8% increase. The chain’s system-wide international sales grew by 13.5% in constant currencies.
• Pizza Inn reported its fourth quarter and fiscal year financial results for the periods that closed on June 26. For the quarter, the company’s revenue fell by 11.6% period-over-period to $1.7 million. The chain swung to a net loss of $112,000 vs. net earnings of $564,000 a year earlier. For the full year, revenue fell by 8% to $4.7 million. Net income was $204,000, down from $2.24 million a year earlier.

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