Einstein Noah Restaurant Group, operating under the Einstein Bros. Bagels, Noah's New York Bagels, and Manhattan Bagel brands, has reported financial results for the second quarter ended June 30.
Systemwide same-store sales decreased 2.2 percent for the quarter while total revenues fell 1.0 percent to $104.4 million, down from $105.4 million reported in the second quarter of 2008.
Company-owned comps decreased 1.3 percent to $95.1 million, mostly as a result of a 3.2 percent decrease in same-store sales, partially offset by a net increase of six additional company-owned restaurants since July 1, 2008.
Net income was $6.5 million in the second quarter of 2009, or 39 cents per diluted share, compared to net income of $6.9 million, or 42 cents per diluted share, in the second quarter of 2008.
The company continued to invest in marketing initiatives to build traffic and drive awareness of its brands. Marketing initiatives and coupon-related discounts increased $500,000 and $1 million, respectively compared to 2008.
As a percentage of sales, company-owned restaurant cost of goods sold were favorable by 100 basis points in the second quarter of 2009 compared to 2008.
According to its earnings report, the company expects the cost of major agricultural commodities to decrease approximately $0.9 million in the back half of 2009 compared to the same period in 2008.
New Units and Development
Franchise and license locations continued a trend of positive comparable-store sales, posting a 2.2 percent increase for the second quarter of 2009. The company also benefitted from a net increase of 28 additional license restaurants and two franchise restaurants since July 1, 2008.
The effect of the new locations and same-store sales helped drive franchise and license related revenues up 16.5 percent to $1.7 million in the second quarter of 2009.
Restaurant openings during the second quarter of 2009 consisted of one Einstein Bros. company-owned restaurant, one Einstein Bros. franchise restaurant, and seven Einstein Bros. licensed restaurants. Two Einstein Bros. company-owned restaurants and one Einstein Bros. licensed restaurant were closed during the quarter.
For the remainder of 2009, the company anticipates the opening of five new company-owned Einstein Bros. restaurants, four to six additional franchised Einstein Bros. restaurants, and 18 to 23 additional Einstein Bros. licensed restaurants.
Conference Call Today
The company will host a conference call to discuss second quarter 2009 financial results today at 3 p.m. Mountain time (5 p.m. Eastern). Hosting the call will be Jeff O'Neill, president and chief executive officer, and Richard Dutkiewicz, chief financial officer.
The dial-in numbers for the conference call are 1-800-762-8779 for domestic toll-free calls and 1-480-629-9771 for international. The conference ID is 4112159. A telephone replay will be available through August 20, 2009, and may be accessed by dialing 1-800-406-7325 for domestic toll-free calls or 1-303-590-3030 for international. The conference replay access code is 4112159#.
To access a live webcast of the call, visit Einstein Noah's Web site. A replay of the webcast will be available on the Web site for at least four weeks.
