Pizza Inn logs first profitable quarter since 2004

THE COLONY, Texas — Pizza Inn reported its first positive quarter since 2004 with the Feb. 7 announcement of a $152,000 profit logged in Q2 (Pizza Inn's fiscal 2007), ended Dec. 24, 2006. According to a news release, the chain lost $601,000 in the comparable period last year.

 

Second-quarter revenue dipped to $12.4 million versus $12.8 million in the prior period as domestic chain-wide comparable-store sales slid 1.3 percent and overall sales dropped 6 percent. Comps at Pizza Inn's buffet restaurants rose 0.6 percent for the period.

 

Pizza Inn's 2006 decision to outsource its distribution, reduce prices on key food and supplies sold to franchisees and lower cheese prices all contributed to an 8 percent decline in revenue.

 

The company also absorbed $375,000 in legal fees for the period.

 

"Much has been accomplished in the pursuit of turning around this brand," said Tim Taft, Pizza Inn president and chief executive. "Franchisees report being healthier than they have been in a long while and, with the recent hiring of Charlie Morrison (chief financial officer) and Susan Gray (training and human resources), we have a complete management team capable of significantly affecting our positive momentum."