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Pizza Inn reports Q2 earnings
February 10, 2009
THE COLONY, Texas -- Comparable domestic buffet restaurant sales atPizza Innrestaurants decreased 3.3 percent for the second quarter ended Dec. 28, the company has announced.
Revenues for the quarter were $11.3 million, off 11 percent compared with revenues of $12.7 million for the fiscal 2008 second quarter. Year-to-date revenues were $22.7 million, off 8 percent compared with revenues of $24.8 million for the first six months of the previous fiscal year.
Net income for the quarter was $136,000, off 85 percent compared with net income of $853,000 for the previous year's second quarter. Year-to-date net income was $429,000, off 64 percent compared with net income of $1.2 million for the same period last year.
The company recorded a $263,000 litigation settlement during the quarter, compared with a $284,000 litigation recovery in the same period of the prior fiscal year. Additionally, the company recorded $74,000 of income tax expense for the quarter compared with no income tax expense for the same period of the prior fiscal year.
Seven new franchise restaurants and one new domestic company-owned restaurant opened during the quarter. The new company-owned buffet restaurant located in Denton, Texas, reported sales for the quarter of $412,000, representing 11 weeks of operation since opening on Oct. 15, 2008.
"If you adjust for one-time, non-operating expenses, our underlying business performance remains stable," said president and CEO Charlie Morrison.
"Our new prototype buffet-style restaurant in Denton, Texas, has been a big hit with customers and existing franchisees," he said. "Last month we announced our new franchise incentive program offering 0 percent royalties for the first year of operation for new buffet restaurants as a means to stimulate demand for this new prototype in otherwise challenging financial times."
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