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Ignite closes 7 Joe’s Crab Shack locations

Ignite closes 7 Joe’s Crab Shack locations

Same-store sales fall 6.6 percent at the seafood chain

Ignite Restaurant Group Inc. closed seven Joe’s Crab Shack locations in the third quarter, the company said on Thursday, as same-store sales at the chain continued to struggle.

Same-store sales fell 6.6 percent in the third quarter ended Sept. 28 at the seafood chain, which now has 131 locations.

Two of the closed locations will be converted to Brick House Tavern + Tap restaurants, the 23-unit chain that reported a 0.7-percent decline in same-store sales, its first decline in well over three years.

“We are obviously disappointed with the sales results at Joe’s, but we remain enthusiastic about the new initiatives we have identified and that we have tested during the quarter,” Ray Blanchette, CEO of the Houston-based Ignite, said in a statement.

By closing the seven underperforming locations, Blanchette said, “We continue to optimize our real estate portfolio, which not only improves the operating results at Joe’s but also provides another growth avenue for Brick House.”

Ignite reported a wider loss from continuing operations in the quarter of $4.3 million, or 17 cents per share, from $2.4 million or 9 cents in the same period a year ago. Revenues fell 4.2 percent to $133.4 million from $139.3 million.

Contact Jonathan Maze at [email protected]
Follow him on Twitter at @jonathanmaze

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