Q3 comps slide 3% at Pizza Inn
THE COLONY, Texas — Pizza Inn reported a 3.2 percent dip in comparable-store sales for the 12 weeks ended March 27, 2005.
According to a regulatory filing, the 400-unit chain lost $20,000 during the quarter, versus a profit of $617,000 in the same period last year. Revenues were $13.4 million, compared to $14.5 million for the comparable period.
For the first nine months of its fiscal year (which ends in June), revenues were $41.6 million, versus $44.6 million last year.
The chain said a 5 percent increase in product costs hit profits hard during the period. Tim Taft, Pizza Inn's new chief executive officer said the company did not pass along the cost increases to its franchisees, who buy exclusively from its Norco distribution arm.
Additionally, the company's legal fees were $390,000 higher than in the prior quarter, reflecting expenses tied to ongoing tussles with former chief executive Ronald Parker (who was fired in December) and former vice president and legal counsel Keith Clark (who resigned in June 2004).