Challenges at restaurants in Denver, Baltimore and Texas resulted in lower-than-expected same-store sales increases at Kona Grill Inc. restaurants during the third quarter, company officials said Monday.
Same-store sales increased 1.6 percent for the Sept. 30-ended quarter, lapping a 2.7-percent increase from the prior year. The increase included a 2.8-percent increase in average check that was partially offset by a 1.3-percent decline in traffic.
The company has reported same-store sales growth in 20 of the last 21 quarters.
Kona Grill, however, reported a net loss of $1.5 million, or a loss of 13 cents per share, compared with net income of $349,000, or 3 cents per share, a year ago.
Revenue increased nearly 20 percent, to $35.9 million, compared with $30 million a year ago.
Berke Bakay, president and CEO of Kona Grill, said the 1.6-percent same-store sales increase was 40 basis points below earlier guidance because of problems at just a few restaurants within the comparable-store base, including a later-than-expected patio reopening of a remodeled restaurant in Denver, the lingering impact in Baltimore of slow convention traffic, and the effect of the oil downturn on certain markets in Texas.
“Three-fourths of our comparable-base restaurants comped positive during the quarter, demonstrating not only our brand strength but also how a few locations can significantly impact overall results due to our small restaurant base,” Bakay said in a statement.
For the fourth quarter this year, same-store sales are expected to be slightly positive, the company said.
The restaurant in Summerlin, Nev., will close temporarily in November for a major remodeling.
Kona Grill expects to open eight restaurants in 2016. The company ended the third quarter with 35 restaurants in 19 states and Puerto Rico.
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