COLUMBUS Ohio Bob Evans Farms Inc., which operates 709 restaurants under two brands, said Wednesday it expects to swing to a loss in its fiscal third quarter on a $75.6 million impairment charge against its casual-dining Mimi’s Café brand.
Quarterly same-store sales also hurt the company, with drops of 1.3 percent at the company’s Bob Evans family-dining brand, and 6.8 percent at Mimi’s Cafe, the company reported.
For the third quarter ended Jan. 23, Bob Evans said it expected to post an operating loss of $46.4 million and a net loss of about $51.4 million, or $1.67 per share. A year earlier, the company had recorded operating income of $32.7 million and net income of $20.0 million, or 61 cents per share.
Full third-quarter results will be released Feb. 10.
The latest-quarter loss included $56.2 million of goodwill impairment charges for Mimi’s Cafe, another $11.8 million against intangible assets such as the Mimi’s Cafe trade name, and $6.4 million of impairment charges on six underperforming Mimi’s Cafe restaurants. The remainder of the $75.6 million charge comes from severance payments, retirement costs and non-cash charges for unusable food products, the company said. Bob Evans also recorded a $300,000 gain on the sale of restaurants assets, making the quarterly net pre-tax charge total $75.3 million.
Bob Evans reaffirmed its estimate for full-year adjusted operating income to total between $91 million and $96 million, excluding the impairment charges.
Contact Bret Thorn at [email protected].