Sbarro Inc. released numbers for their 2009 third quarter ended Sept. 27. The company said large income losses were primarily due to low comparable unit sales.
While the company didn't release exact comp sales figures, it reported a 5.2 perent decrease in company-owned comparable-unit sales, which it primarily attributed to reduced mall traffic. Domestic franchise comparable-unit sales declined 7.1 percent while international franchise comparable-unit sales declined 27.3 percent, which the company attributed to the strengthening of the U.S. dollar relative to virtually all foreign currencies.
Revenues for the third quarter were down 7 percent: $85.5 million for the quarter ended Sept. 27, 2009 as compared to revenues of $91.9 million for the quarter ended Sept. 28, 2008.
Revenues were $245.2 million for the nine months, compared to revenues of $260.5 million for the nine months ended Sept. 28, 2008, a 6 percent decrease. The decrease in revenues was primarily due to a decrease in company-owned comparable-unit sales and lost sales from stores strategically closed, offset by revenues generated by new company-owned stores opened in 2008 and 2009.
Net loss attributable to Sbarro, Inc. for the quarter ended Sept. 27, 2009 was $24.5 million as compared to a net loss of $1.2 million for the quarter ended Sept. 28, 2008, a 1,942 percent loss increase.
Net loss attributable to Sbarro, Inc. was $36.7 million for the first nine months of 2009 as compared to a net loss of $8.9 million for the first nine months of 2008, a 312 percent increase in loss. This increase in net loss was primarily the result of a decrease in comparable unit sales and royalties on franchise sales, partially offset by cost savings initiatives and reduced commodity costs.
User Comments