Buffets, Inc. Announces Most Profitable Quarter.Business Editors EDEN PRAIRIE Eden Prairie A city of eastern Minnesota, a residential suburb of Minneapolis. Population: 57,300. , Minn.--(BUSINESS WIRE)--May 4, 2000 Buffets, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BOCB), reported today that the quarter ended April 19, 2000, was the most profitable quarter in the history of the Company. For the first quarter (16 weeks) 2000, net earnings increased 30.8% to $13,356,000 from $10,210,000 in 1999. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 40.9% to $.31 on 45,265,000 shares, compared to $.22 on 48,056,000 shares in 1999. Restaurant sales for the quarter increased 9.0% to $302,740,000. Average weekly sales per restaurant increased during the first quarter by 4.8% to $46,969. Comparable restaurant sales were up by 3.4%. Commenting on the first quarter, Roe H. Hatlen, Buffets' Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are pleased to have entered the new millennium with the most profitable quarter in the history of our company. To be sure, our strong performance was aided by a mild winter this year. However, we continue to be rewarded by the programs we have put in place these past three years to improve our operating efficiency, expand our customer base and to enhance our guest experience. We have now completed eleven consecutive quarters of year over year comparable store sales increases and restaurant margin improvements. The leverage we are receiving from our television advertising and our well-run restaurants helped to produce profit increases well in excess of our sales gains. "During the quarter we developed four new television commercials which began airing at the end of March. We now have 290 of our buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal restaurants receiving television coverage. We continue to be pleased with both our local store and broadcast marketing programs. "In regards to development, during the quarter we opened our 386th buffet restaurant in Pittsburgh, Pennsylvania “Pittsburgh” redirects here. For the region, see Pittsburgh Metropolitan Area. Pittsburgh (pronounced IPA: /ˈpɪtsbɚg/) is the second largest city in the Commonwealth of Pennsylvania. and our third Tahoe Ta·hoe , Lake A lake on the California-Nevada border west of Carson City, Nevada. It is a popular resort area. Joe's Joe's, known as G.I. Joe’s prior to April 1 2007, is a sporting goods and auto parts retailer dealer based in Oregon. The Wilsonville, Oregon based company has 26 stores in Oregon and Washington. The company is planning on opening two stores in Idaho in 2007. Famous Steakhouse steak house or steak·house n. A restaurant that specializes in beefsteak dishes. steakhouse Noun a restaurant that specializes in steaks Noun 1. restaurant in Bakersfield, California “Bakersfield” redirects here. For other uses, see Bakersfield (disambiguation). Bakersfield (pop. 323,213GR2) is one of the fastest-growing, large-population cities in the United States. . Both restaurants are off to strong starts. During the quarter we also sold two underperforming buffet restaurants in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). and recorded cost write downs on three additional restaurants which we expect to sell in the second quarter." In conclusion, Mr. Hatlen stated, "We are pleased to begin the new millennium with a record quarter. Our robust financial position, coupled with an outstanding management team, give us the strength and flexibility to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. opportunities while preserving our leadership position in our segment of the restaurant industry." Buffets, Inc. currently operates 404 restaurants (254 Old Country Buffet Old Country Buffet is a buffet-style, sit-down restaurant chain headquartered in Eagan, Minnesota with locations throughout the United States. Menu Items Old Country Buffet restaurants feature a wide spread of menu items, in the following categories: Its wide selection of food include pizza, hot dogs, hot wings, sliced ham among many others. (R), 12 Original Roadhouse road·house n. An inn, restaurant, or nightclub located on a road outside a town or city. roadhouse Noun a pub or restaurant at the side of a road Noun 1. Grill Grill may refer to: In food:
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. including statements regarding new marketing programs and the potential success of the Company's restaurant concepts. In addition to the factors discussed above, other factors that could cause actual results to differ materially include changes in the cost and supply of food and labor, weather conditions, health and regulatory developments and general economic conditions. In addition, the ability of the Company to open new restaurants depends on a number of factors, including its ability to find suitable locations and negotiate acceptable leases and land purchases, its ability to attract and retain qualified restaurant managers and the availability of capital. These and other factors are discussed in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 29, 1999, including the sections captions "Forward-Looking Statements" and "Risk Factors." The Company assumes no obligations to publicly release the results of any revisions or updates to these forward-looking statements to reflect future events or unanticipated occurrences. http://www.buffet.com
Buffets, Inc. and Subsidiaries
Statement of Earnings
(Unaudited)
Sixteen Weeks Ended
----------------------------------------------------------------------
(In thousands, except per share amounts and average weekly sales)
April 21, April 19, Percent
1999 Percent 2000 Percent Increase
-------------------------------------------
Restaurant sales $277,838 100.0% $302,740 100.0% 9.0%
Restaurant costs:
Food costs 90,041 32.4% 96,677 32.0%
Labor costs 87,026 31.3% 93,633 30.9%
Direct and occupancy costs 63,167 22.8% 65,742 21.7%
-------- ------ ------- -------
Total restaurant costs 240,234 86.5% 256,052 84.6%
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Restaurant profit 37,604 13.5% 46,688 15.4%
Selling,general and
administrative expenses 21,744 7.8% 25,092 8.3%
Impairment of assets and
site closing costs 329 0.1% 1,139 0.4%
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15,531 5.6% 20,457 6.7%
Other income 939 0.3% 1,084 0.4%
-------- ------ ------- -------
Earnings before income taxes 16,470 5.9% 21,541 7.1%
Income taxes 6,260 2.2% 8,185 2.7%
-------- ------ ------- -------
Net earnings $10,210 3.7% $13,356 4.4% 30.8%
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Earnings per share
Basic $0.23 $0.32 39.1%
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Diluted $0.22 $0.31 40.9%
======== ======= =======
Weighted average common
shares assumed outstanding
Basic 44,238 41,547
Diluted 48,056 45,265
Number of Company-owned
restaurants open at
end of period 391 403 3.1%
Average weekly sales of
Company-owned restaurants
open at end of period $44,798 $46,969 4.8%
Condensed Consolidated Balance Sheet
(Unaudited)
(in thousands)
December 29, April 19,
1999 2000
----------- -----------
Current assets $101,451 $122,142
Property and equipment (net) 353,657 358,007
Goodwill (net) 16,393 16,071
Other assets 6,134 7,238
----------- -----------
$477,635 $503,458
=========== ===========
Current liabilities $100,656 $112,532
Long term debt 41,465 41,465
Minority interest 265 290
Other non-current liabilities 181
Deferred income taxes 28,866 29,232
Stockholders' equity 306,383 319,758
----------- -----------
$477,635 $503,458
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