ATLANTA Rare Hospitality International Inc. posted a 5.2-percent drop in fourth-quarter net income to $12.2 million, or 36 cents per share, on revenues that rose 17 percent to $259.9 million.
Rare is the operator or franchisor of 275 LongHorn Steakhouse restaurants, 26 Capital Grille restaurants and 31 Bugaboo Creek Steak House units. The company has agreed to exit the Bugaboo concept and classified the chain as discontinued operations.
Per-share earnings from continuing operations for the fourth quarter ended Dec. 31 totaled 46 cents, up from 42 cents in the year earlier quarter, the company reported.
Same-store sales increased 1.5 percent at LongHorn and jumped 8.4 percent at Capital Grille.
For the full year, Rare reported a 23.7-percent plunge in net income to $39.4 million, or $1.14 per share. The company's loss from discontinued operations was $10.6 million. Fiscal 2006 revenues rose 17.6 percent to $986.9 million.
Based on the company's performance in the first weeks of the current first quarter of fiscal 2007, Rare reduced its first-quarter earnings guidance to a range between 46 cents per share and 49 cents per share. Previously, the company had expected to earn between 50 cents per share and 52 cents per share. A year earlier, Rare posted earnings of 48 cents per share.