Skip navigation

OSI profits drop 41.4% for 3rd-Q

TAMPA Fla. OSI Restaurant Partners Inc., parent company to Outback Steakhouse, Carrabba’s Italian Grill and seven additional concepts, recorded a 41.4-percent plunge in profit for its third quarter ended Sept. 30, as charges for impaired assets and restaurant closures weighed down a revenue increase of 8.9 percent.

OSI, which operates or franchises 1,388 restaurants, earned $17.3 million, or 23 cents per share, versus year-earlier earnings of $29.5 million, or 38 cents a share. Revenues for the third quarter totaled $950.6 million. The company’s third-quarter report had been delayed because of an accounting snafu that led the company to underreport liability for unearned revenue from gift cards. OSI said in November it would adjust financial statements by $50 million to $70 million because of the error. It’s year-earlier third quarter has been adjusted, but other amended reports would be filed “as soon as practicable,” the company said.

Systemwide third-quarter same-store sales fell 2.5 percent at Outback and declined 2.6 percent at Carrabba’s. Same-store sales fell 0.4 percent at Bonefish Grill, declined 1 percent at Roy’s, and increased 2.8 percent at Fleming’s Prime Steakhouse & Wine Bar.

For the full fiscal year, OSI said it expects per-share earnings to drop between 19 percent and 22 percent from fiscal 2005 to between $1.43 and $1.48. The company previously had expected full-year, per-share earnings to total $1.55 to $1.64. Pushing its earnings lower are charges for restaurant closures or underperforming units and fees for its financial restatements and related auditing, the company said.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish