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Fogo de Chao restaurant

Fogo de Chão 1Q traffic climbs 3%

Profit and same-store sales rise at Brazilian churrascaria chain

Fogo de Chão Inc. saw traffic rise in the first quarter ended April 3, boosting profits during the period, the company said Tuesday.

The Dallas-based operator’s net income for the first quarter rose 33 percent, to $6 million, or 21 cents per share, from $4.5 million, or 20 cents per share, the previous year. Revenue increased 6 percent, to $68.9 million, from $65 million last year.

Systemwide same-store sales rose 1.1 percent during the quarter.

[CHARTBEAT:3]

“U.S. company-owned comparable-restaurant sales were up 0.9 percent, driven primarily by increased guest traffic of 3 percent,” Larry Johnson, Fogo de Chão CEO, said in a statement. “Our traffic increase was 250 basis points above the average of our peers as reported by Knapp-Track and Black Box’s Upscale/Fine Dining Index.”

Johnson credited the churrascaria brand’s Brazilian-inspired menu and service for appealing to diners. 

“We believe that our results this quarter demonstrate our ability to navigate this softening sales environment across our industry,” he said.

Foreign currency exchange rates with Brazil, where Fogo de Chão was founded in 1979, and has 10 restaurants, impacted revenue, the company said.

Brazil restaurant revenue was $8.2 million in the first quarter of 2016, compared with $10.2 million in the first quarter of 2015.  

“The decrease in revenue compared to last year was driven entirely by a $2.7 million foreign exchange impact, partially offset by strong comparable-restaurant sales, which increased 2.3 percent,” the company said. 

During the quarter, Fogo de Chão opened one new unit in Naperville, Ill. It expects to open five to six locations, including at least one international joint-venture restaurant, this calendar year.

Fogo de Chão has 31 locations in the United States, 10 units in Brazil and one joint-venture restaurant in Mexico. 

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

TAGS: Finance News
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