A few encouraging signs emerged this week as several restaurant companies reported fourth-quarter results that reflected improving sales trends.
Buffalo Wild Wings Inc., Chipotle Mexican Grill Inc. and Panera Bread Co., which have performed better than most chains throughout the recession, continued their track records in earnings results unveiled Thursday. All three reported positive same-store sales in the fourth quarter, including a 7.4-percent jump at Panera's company stores.
Meanwhile, Cheesecake Factory Inc. and BJ's Restaurants reported fourth-quarter same-stores sales that, while still negative, showed improvement from the steep declines seen over the past year at many casual-dining companies.
"Our menu innovation and unwavering focus on the guest experience contributed to a steady improvement in guest satisfaction scores throughout the year," said David Overton, The Cheesecake Factory's chairman and chief executive. "This, in turn, played a key role in driving our four consecutive quarters of improving comparable restaurant sales, which reflected stronger performance than the casual-dining industry as a whole."
Summaries of the companies' fourth-quarter results follow:
Minneapolis-based Buffalo Wild Wings reported a fourth-quarter profit of $8.3 million, or 46 cents per share, up 7.9 percent from the $7.7 million, or 43 cents per share, a year earlier. Revenue for the quarter climbed 19.6 percent to $145 million. Same-store sales rose 2.6 percent at company-owned restaurants and increased 2 percent at franchised outlets. For fiscal 2009, Buffalo Wild Wings recorded net income of $30.7 million, or $1.69 a share, compared with profit of $24.4 million, or $1.36 a share, in 2008. Revenue for the year rose 27.6 percent to $538.9 million. Buffalo Wild Wings operates 232 restaurants and franchises 420 locations.
Chipotle Mexican Grill benefited from more restaurants and positive same-store sales as it posted an 86-percent increase in fourth-quarter net income to $31.6 million, or 99 cents per share. In the year-ago quarter, the company posted profit of $17.0 million, or 52 cents a share. Latest-quarter revenue rose 12.2 percent, to $387.5 million. Same-store sales increased 2.0 percent in the fourth quarter and were aided by price hikes taken in 2008. The fast-casual chain said it added 45 restaurants during quarter and 121 for the year, ending 2009 with 956 locations. For the full year, Chipotle said net income climbed 62 percent to $126.8 million, or $3.95 per share, compared with $78.2 million, or $2.36 a share, last year. Revenue rose 14.0 percent to $1.5 billion.
Panera Bread Co., parent of the 1,380-unit bakery-cafe system, reported a 16.2-percent increase in net income to $29.7 million, or 95 cents per share, from year-ago profit of $25.5 million, or 84 cents a share. The Richmond Heights, Mo.-based company said latest quarter earnings were reduced by 5 cents per share because of nonrecurring charges resulting from expected asset retirement activity. Revenue rose 2.6 percent in the quarter to $367.0 million, as the company added a net 10 new restaurants in the period and realized same-store sales growth at company restaurants of 7.4 percent on a calendar basis. For the full 52-week fiscal 2009, Panera said net income climbed 27.6 percent to $86.1 million, or $2.78 per share, compared with $67.4 million, or $2.22 a share, for the 53-week fiscal 2008. Revenue in 2009 rose 4.2 percent to $1.4 billion, on new restaurants and a 0.7-percent increase in same-store sales at company-operated units. Panera ended fiscal 2009 with 1,380 restaurants, including 795 franchised locations, up from 1,325 in fiscal 2008.
The Cheesecake Factory recorded a net loss of $13 million, or nil per share, in its fourth quarter, compared with a year-ago profit, on pre-tax impairment charges of $26.5 million related to four Grand Lux Cafe restaurants, which remain open. Excluding those charges, the company said it would have earned $17.2 million, or 28 cents per share, compared with a profit of $7.1 million, or 12 cents a share, a year ago. Revenue in the latest fourth quarter edged up 0.05 percent to $400.6 million. Blended same-store sales fell 0.9 percent in the fourth quarter, reflecting declines of 0.7 percent at The Cheesecake Factory and 3.9 percent at Grand Lux. For fiscal 2009, the company's profit fell 18 percent to $42.8 million, or 72 cents a share, impacted by the fourth-quarter impairment charges. Revenue in 2009 was roughly flat at $1.6 billion, and same-store sales for the year fell 2.6 percent. Calabasas Hills, Calif.-based Cheesecake Factory operates 147 locations of its namesake brand, as well as 13 Grand Lux Cafes and one RockSugar Pan Asian Kitchen.
BJ's Restaurants reported a lower-than-expected fourth-quarter profit of $1.7 million, or 6 cents per share, compared with net income of $2.3 million, or 8 cents per share, a year ago. Revenues increased 13.5 percent to $112.6 million for the quarter. Same-store sales for the quarter dropped 0.2 percent, compared with a decrease of 0.7 percent the fourth quarter of 2008. The quarter's results included a $1.7 million pre-tax charge related to the settlement and disposition of the company's auction rate securities portfolio and legal costs. For the year, BJ's posted net income of $13 million, or 48 cents per share, compared with profit of $10.3 million, or 39 cents per share, for the previous year. Full-year revenue increased 14.1 percent to $426.7 million, while same-store sales declined 0.8 percent. Huntington, Calif.-based BJ's Restaurants Inc. operates 92 casual-dining restaurants under the BJ's Restaurant & Brewery, BJ's Restaurant & Brewhouse, or BJ's Pizza & Grill brands.
Mark Brandau, Lisa Jennings and Alan J. Liddle contributed to this report.