News

Einstein Noah posts positive Q4, FY 2011 results

March 5, 2012

Einstein Noah Restaurant Group reported an 8.6 percent increase in revenue for the company's fourth quarter ended Jan. 3. Revenue increased to $115.1 million, up from $106.1 million in Q4 2011, and includes $7.3 million for the 14^th week in the fourth quarter of 2011.

The company operates the Einstein Bros. Bagels, Noah's New York Bagels, and Manhattan Bagel brands.

For the fourth quarter, the company registered same-store sales growth of 1.2 percent, reflecting strong growth in check and strength in catering sales. This was partially offset by lower comparable transactions.

Net income was $6 million, compared to $3.6 million for the same period last year. Adjusted EBITDA was $16.8 million in the fourth quarter of 2011 compared to $14.0 million in the fourth quarter of 2010.

The company incurred restructuring expenses of $0.8 million in the fourth quarter, related to the decision to close its five food commissaries to streamline its supply chain. The Columbus, Ohio, commissary was closed in late 2011 and the remaining four commissaries are expected to close in the first quarter of 2012. The company expects that the closing of the commissaries will result in savings of approximately $1.2 million in 2012.

FY 2011

For the year, total revenues increased 2.9 percent to $423.6 million, up from $411.7 million in the same period last year. The increase includes $7.3 million for the 53^rd week in fiscal year 2011.

System-wide same-store sales increased 0.4 percent. Meanwhile, net income increased to $13.2 million, compared to $11.3 million in 2010.

As of January 3, 2012, there were 773 system-wide Einstein Bros. Bagels, Noah's New York Bagels, and Manhattan Bagel branded restaurants in operation. During the fourth quarter of 2011, the company added 15 net restaurants to its operations, including five locations in the Portland, Ore., area through its acquisition of Kettleman Bagel Company.

“In 2012, we intend to solidify our leadership position in fresh baked goodness and healthy choices by introducing a new smart choices menu of bagel thin sandwiches, salads and soups, and augmenting our specialty beverage platform with real fruit smoothies and new blended coffees and teas," said Einstein Noah CEO James O’Neill. "We will also redesign our everyday value layer for breakfast and lunch and capitalize on our momentum in catering sales. Finally, we have started phase two of our cost efficiency program, which is anticipated to generate an additional $3.0 million in annualized savings.”

This year, the company expects to open 60 to 80 locations, including eight to 12 company-owned restaurants, 12 to 14 franchise restaurants, and 40 to 54 license restaurants.

To date, the company also has secured price protection on 88 percent and 93 percent of its wheat and coffee requirements, respectively.