Kona Grill Inc. swung to a loss in the first quarter ended March 31, on charges for accelerated depreciation, rents and remodeling costs, the company reported Tuesday.
The Scottsdale, Ariz.-based grill and sushi bar operator reported a net loss of $925,000, or a loss of eight cents a share, compared with a profit of $251,000, or three cents a share, in the same period last year. Revenue rose 18.8 percent, to $32.8 million, from $27.6 million in the prior-year period.
Same-store sales increased 2.2 percent, lapping a 6.2-percent gain from the prior year, the company said. The results reflected a 1-percent increase in traffic and a 1.2-percent increase in average check.
“While same-store sales were slightly below our expectations due to adverse weather late in the quarter, we are confident that the core fundamentals of our business are intact,” Berke Bakay, Kona Grill president and CEO, said in a statement.
The net loss in the quarter included charges related to the significant remodeling of Kona’s Denver restaurant, which totaled three cents per share, Bakay said, adding that the company would have met its guidance of a five-cents-a-share loss if it had excluded non-cash straight-line rent and income tax items.
Kona opened a new restaurant in San Juan, Puerto Rico, on March 26, bringing the total units open in the quarter to 31. The company plans to open another new restaurant in Plano, Texas, on Wednesday.
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