MELVILLE, N.Y.—First quarter sales and revenue rose modestly at quick-serve pizza and Italian chain Sbarro, but interest expenses dragged net income deep into negative territory.
According to a filing with the Securities and Exchange Commission, Sbarro's restaurant sales were $90.8 million for the 16 weeks ended April 18, 2004, a gain of 2.6 percent over the comparable period last year. Revenues were up 3.3 percent compared to a year ago.
Operating income rose to nearly $3 million in the period, a 73 percent gain over a year ago, when the company lost $1.1 million. However, interest expenses of $9.5 million turned the gain into a $6.2 million loss.
Sbarro opened 11 new restaurants in the quarter, but closed 17. There are 912 units (including three kiosks) in the chain this year, compared to 907 units a year ago.