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Pizza Inn Holdings Inc.'s third fiscal quarter ended March 25 and included a net income decrease of $0.4 million year-over-year to $52 thousand, compared to net income of $0.4 million for the same quarter of the prior fiscal year. The decline was partially attributable to the pre-opening costs associated with new company-owned Pie Five restaurants.
Third quarter revenues were essentially unchanged at $10.6 million compared to $10.7 million for the same quarter of the prior fiscal year. Company-owned restaurant sales increased 45.8 percent to $1.7 million due primarily to new store openings.
For the nine months ended March 25, net income was $0.4 million, compared to $0.9 million for the same period in the prior fiscal year. The decline in net income was partially attributable to the opening of four Pie Five stores during the nine months and $0.6 million of costs associated with preparing the company to support the growth of the Pie Five business, as well as the franchising of Pizza Inn in China.
Revenues increased 1.3 percent, to $32.1 million for the nine months ended March 25, compared to $31.7 million during the same period in the prior fiscal year. Domestic franchise buffet-style restaurant same-store sales increased 0.1 percent while total domestic franchise same-store sales decreased 0.1 percent compared to the prior fiscal year.
For the nine months of fiscal 2012, company store restaurant sales increased $1.2 million, or 40.6 percent, to $4.2 million due to new store openings.
"We are excited about the progress we have made in our expansion of the Pie Five concept," said Charlie Morrison, president and CEO. "Our results reflect the growing popularity of the Pie Five brand as evidenced in the solid store level contribution during our ramp-up phase. Additionally, our quarterly results reflect the investments in people, technology and support required to ensure that this concept is positioned properly for future growth."
Morrison said the company has been working with franchisees to develop and test new products and marketing strategies to enhance systemwide revenue for the Pizza Inn brand.
"We are also working with our franchisees to evaluate impacted non-proprietary food products we sell in an effort to lower our costs without compromising our long-standing quality," he said. "We believe these initiatives should support a return to historical product sales relative to franchisee retail sales."
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