Bob Evans Farms Inc. reported a net loss of $1 million, or 4 cents per share, in its first quarter ended July 25, along with slight decreases in revenue and same-store sales.
Additionally, four nominees put forth by activist investor Sandell Asset Management Corp. will join Bob Evans’ 12-member board.
The New Albany, Ohio-based family-dining operator cited “economic headwinds” in Bob Evans’ core markets in the Midwest, and that “advertising and promotional activity in its peer set remain at a high level.”
In its earnings statement, Bob Evans said discounting resulted in a $4.7 million decrease in its non-GAAP operating income. Increased advertising resulted in a further decrease of $1.7 million.
Other expenses included $1.1 million in incremental depreciation, $1.1 million in “costs related to strengthening the company’s internal processes and controls over financial reporting,” $1 million in increased health care costs, and $800,000 in increased repair and maintenance expenses.
During the quarter, Bob Evans opened one new restaurant, in Lakewood, Ohio.
2Q NET LOSS
Result: -$1.0 million, or -4 cents per share% Decrease: 112% (from $8.4 million, or 30 cents per share)
2Q REVENUE
Result: $326 million% Decrease: 0.9% (from $329 million)
2Q SAME-STORE SALES
% Decrease: 2%Source: Company report
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Contact Bret Thorn at [email protected].
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