Einstein Noah Restaurant Group Inc., operator of the under the Einstein Bros. Bagels, Noah's New York Bagels, and Manhattan Bagel brands, has reported financial results for its second quarter ended June 29, 2010.
For the second quarter, system-wide same-store sales were down 1.1 percent, reflecting an investment in average check relative to the prior year. Company-owned comps were down 2.2 percent.
Total revenues fell slightly to $103.5 million compared to $104.4 million in the second quarter of 2009. Company-owned restaurant sales similarly decreased modestly to $94.2 million, down from $95.1 million, although the company benefitted from the opening of six additional company-owned restaurants since June 30, 2009.
Adjusted net income slightly decreased to $3.1 million, or $0.19 in adjusted dilutive EPS, in the second quarter of 2010, compared to $4.0 million, or $0.24 in adjusted dilutive EPS, in the second quarter of 2009.
Restaurant openings during the second quarter of 2010 consisted of nine Einstein Bros. units, including one company-owned restaurant, four franchise restaurants, and four license restaurants. One company-owned restaurant and two license restaurants were also closed during the period.
2010 outlook
The company anticipates the opening of 10-12 new company-owned restaurants, 12-17 new franchise restaurants, and 35-45 license restaurants for the year.
The company has 19 signed development agreements for Einstein Bros. Bagels franchises, and coupled with the efforts to sign additional development agreements in 2010 is expected to yield an ending pipeline of 90-100 additional franchise locations.
As of June 30, company has secured contract pricing on approximately 60 percent of all major agricultural commodities for the remainder of 2010, which should result in favorable prices compared to 2009, along with an opportunity to benefit from further reductions in the market.
