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Mexican Restaurants posts 4Q loss on charges

HOUSTON Mexican Restaurants Inc., which operates 79 restaurants under such names as Casa Ole and Monterey’s Tex-Mex Cafe, swung to a loss in its fourth quarter on heavy impairment charges, the company said Tuesday.

For the fourth quarter ended Dec. 28, the company reported a net loss of $3.9 million, or $1.20 per share, compared with profit of $199,686, or 6 cents a share, in the year-ago quarter. The latest quarter included a $5.1 million goodwill impairment charge, which resulted in a $1.3 million tax benefit, the company said.

Fourth quarter revenue rose 3.4 percent, to $20.5 million. Same-store sales for the quarter increased 2.3 percent.

“I am pleased that our fourth quarter same-store sales were positive 2.3 percent, making it the sixth consecutive quarterly increase,” said Curt Glowacki, chief executive of Mexican Restaurants. "Same-store sales continue to be positive in the first quarter of fiscal year 2009."

For the full year, Mexican Restaurants recorded a net loss of about $4 million, or $1.22 a share. In 2007, the company earned $348,774, or 10 cents a share.

Annual revenue dipped 0.3 percent to $81.9 million, the company reported. Same-store sales rose 1.5 percent at company-owned units and 1.2 percent at franchised stores.

The company said it lost about $1.1 million in restaurant sales in 2008 from the impact of hurricanes Gustav and Ike, and about $900,000 because of fires at two restaurants.

For 2009, Mexican Restaurants said it plans to expand and refine its Mission Burrito quick-service concept. The company plans to open one company-owned Mission Burrito location this year after opening four units and closing one store in 2008. The Mission Burrito website lists five locations for the chain.

Mexican Restaurants has 60 company-operated restaurants, 18 franchisee-operated restaurants and one licensed restaurant. Its other brands include Tortuga Mexican Kitchen, Monterey’s Little Mexico, Crazy Jose’s and La Senorita Mexican Restaurant.

Contact Ron Ruggless at [email protected].

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