Revenue at Bob Evans Farms Inc. fell 3 percent in the third quarter ended Jan. 22, the company said Tuesday, amid unit closures and weak sales due to falling traffic.
Same-store sales at the 540-unit family-dining chain declined by 3.6 percent in the quarter, the company said, while the number of transactions in the period fell by 6.5 percent.
The company cited its continued shift away from discounting for the falling traffic. “We expected sales challenges as we rationalize our pricing and discounting strategies and work to improve the guest experience,” Bob Evans CEO Saed Mohseni said in a statement. While traffic and sales fell, pricing and menu mix increased by 2.9 percent.
Mohseni noted that the New Albany, Ohio-based operator has been working to improve the quality of its breakfast offerings while redefining “the price-value relationship.”
Still, Bob Evans has closed 20 restaurants so far this fiscal year.
Revenue in the third quarter fell 3 percent, to $346.5 million, from $357.2 million the previous year, due largely to sales declines at Bob Evans Restaurants. The company has a BEF Foods packaged goods subsidiary whose sales increased 1 percent.
Net income more than doubled in the quarter, to $12.9 million, or 62 cents per share, from $5.9 million, or 25 cents per share, in the same period a year ago. But much of that increase was due to one-time costs a year ago related to the departure of former CEO Steve Davis and various litigation costs. When adjusted, net income fell 9.6 percent, to $12.9 million, or 62 cents per share, from $14.3 million, or 61 cents per share the previous year.
Bob Evans has cut $12 million in costs so far this fiscal year as part of a three-year plan to cut costs by $35 million.
The company also recently completed a $200 million sale-leaseback involving 145 of its restaurant properties.
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