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Year-to-date loss at Sbarro tops $35 million
November 14, 2007
MELVILLE, N.Y. — Comparable-store sales at Sbarro Inc. company-owned stores increased 3.2 percent in the third quarter ended Sept. 30, the company announced. Comps at domestic franchised stores increased 4.3 percent, while comps at international franchise stores increased 6.6 percent.
Revenue for the quarter was $91 million, up from a revenue of $79.2 million for the 2006 third quarter.
This year's third quarter was comprised of 13 weeks, compared with 12 weeks for the 2006 third quarter. The extra week contributed an additional $6.8 million in revenue for the 2007 third quarter.
Year-to-date, revenues were $254 million, up slightly compared with revenues of $252.5 million for the first nine months of 2006.
On Jan. 31, 2007, the company merged with MidOcean SBR Acquisition Corp., an indirect subsidiary of MidOcean SBR Holdings LLC. As a result of the merger, the company is now an indirect wholly-owned subsidiary of MidOcean SBR Holdings.
Net income for the company was $503,000 for the third quarter, compared with net income of $2.1 million for the 2006 third quarter. For the year-to-date, the company recorded a net loss of $35.1 million, compared with a net loss of $1.7 million for the first nine months of 2007.
The increase in net loss was due primarily to bonuses paid to management and higher net interest expense and depreciation resulting from the merger, the company said.
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