Benihana Inc. (BNHN) the U.S. chain of Japanese restaurants, reported total sales of $23.5 million for the four week period ending September 12, 2010, up 3.5% from $22.7 million in the year-ago period. Results reflect the benefits of the Benihana teppanyaki Renewal Program, which the company initiated in 2009 to improve the dining experience of the guests at the Benihana teppanyaki restaurants.
 
The company’s comparable restaurant sales grew 4.2% for the period, representing the seventh consecutive period of rise. The comparable restaurant sales jumped 7.8% at Benihana teppanyaki restaurants, given the traffic gain of 7.2%. However, due to challenging economic environment, same store-sales declined 2.2% at RA Sushi restaurant and 2.1% at Haru.
 
The Miami-based Japanese restaurant company drives 99.5% of its revenues from restaurant sales (65% from Benihana teppanyaki, 25% RA Sushi and 10% Haru) and 0.5% from franchisee fees and royalty.
 
During the first quarter of fiscal 2011, the company posted a 5.0% year-over-year rise in total revenue, as comparable restaurant sales spiked up 2.4%, resulting from a 3.3% same store-sales increase at Benihana teppanyaki restaurants and a 2.4% growth at Haru whereas same store-sales remained flat year over year at RA Sushi restaurant.
 
We have a Zacks Rank of #3 (short-term Hold recommendation) on the shares. We also reiterate our long-term Neutral rating.
 
The company’s primary competitors are Biglari Holdings Inc. (BH), Buffalo Wild Wings Inc. (BWLD) and Krispy Kreme Doughnuts Inc. (KKD). We have a Zacks #1 Rank (short-term Strong Buy recommendation) on all the shares.
 
Benihana operates 97 restaurants, including 63 Benihana teppanyaki restaurants, 25 RA Sushi Bar restaurants and 9 Haru sushi restaurants. Additionally, the company has 20 franchised Benihana teppanyaki restaurants, which are operating in the U.S., Latin America and the Caribbean.
 
 
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