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Ignite reports $22.2M loss in 1Q

Ignite reports $22.2M loss in 1Q

Results reflect sale of Romano’s Macaroni Grill

Ignite Restaurant Group Inc. reported Monday a $22.2 million loss for the first quarter ended March 30, reflecting its sale in mid-April of Romano’s Macaroni Grill.

The Houston-based casual-dining company reported a loss of 87 cents a share, which widened from a loss of $265,000, or one cent a share, in the first quarter a year ago. The loss from continuing operations, which excluded Macaroni Grill, was $3.2 million, or 12 cents a share, compared with profit of $145,000, or one cent a share, in the same period last year, the company said.

Ignite’s revenue for its two remaining brands, Joe’s Crab Shack and Brick House Tavern + Tap, fell 0.7 percent, to $122.2 million, from $123.1 million in the prior-year period.

Same-store sales declined 3.8 percent at Joe’s Crab Shack in the quarter and rose 5.4 percent at Brick House Tavern + Tap.

Ray Blanchette, Ignite’s president and CEO, said he was pleased with the momentum at Brick House, and added that company was addressing trends at Joe’s.

“While sales challenges persisted at Joe’s Crab Shack, we have streamlined our organizational structure to allow us to refocus our management team, reduce costs and position ourselves to create momentum heading into the summer,” Blanchette said.

Last month, the company announced a restructuring of its management team. The effort was to make Ignite a “leaner, more efficient organization,” Blanchette said on April 17, upon closing the sale of 171-unit Macaroni Grill in an $8.2 million deal with Phoenix-based Redrock Partners LLC.

During the first quarter, Ignite opened two company-owned Brick House restaurants, one in Princeton, N.J., and one in Grapevine, Texas.

Ignite has 161 casual-dining restaurants, including 138 Joe’s Crab Shacks and 23 Brick House units.

Contact Ron Ruggless at [email protected].
Follow him on Twitter: @RonRuggless

TAGS: Finance News
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