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Vicorp's 3rd-Q net loss deepens to $5.7M

DENVER Declining same-store sales and increased operating costs continue to dog Vicorp Restaurants Inc., parent to the Village Inn and Bakers Square brands, which reported on Tuesday a sharp widening of its third quarter net loss versus a year ago.

The net loss for the privately held company’s third quarter, which ended July 12, was $5.7 million, compared with a net loss of $581,000 for the same period of fiscal 2006.

Revenues for the latest third quarter totaled $106.9 million, a 1.4-percent increase from the $105.4 million reported last year. A year-over-year increase in manufacturing sales to third parties and sales from 11 new restaurants helped boost corporate revenue, Vicorp reported.

However, third quarter same-store sales for Village Inn and Bakers Square decreased 2.3 percent and 4 percent, respectively. The company said lower customer entrée counts, increased competition and more cost-consciousness in the midscale, family-dining segment adversely affected same-store restaurant sales.

Increased food and labor costs, which were up about 7 percent from a year ago, also contributed to the increased loss in the latest quarter.

Vicorp owns 316 restaurants and franchises another 93 locations in 25 states.

TAGS: Finance
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