Benihana Inc.(BNHN), the largest operator of Japanese restaurants in the U.S, posted restaurant sales of $26.7 million for the four-week period ending April 24, 2011, up 5.8% from $25.3 million in the year-ago period. Results reflect improved comparable restaurant sales at both Benihana Teppanyaki and RA Sushi restaurant.
The company’s comparable restaurant sales grew 5.8% in the first four-week period of the first quarter of 2012, representing the fifteenth consecutive period of growth.
The comparable restaurant sales jumped 9.0% at Benihana Teppanyaki restaurants, on the back of higher guest count (up 8.7%) resulting from the Benihana Teppanyaki Renewal Program. The company initiated the program in 2009 to improve the dining experience of the guests at the Benihana Teppanyaki restaurants. The same-store sales spiked 2.2% at RA Sushi restaurant during the period, representing positive comps for five consecutive quarters.
However, due to inclement weather condition in the month of April and construction scaffolding outside two Haru restaurants, same-store sales plummeted 5.3% at Haru. Benihana expects sales at Haru to improve in the next month driven by higher customer visits arising from better weather conditions.
Store operating weeks during the period remains flat year over year at 388.
The Miami-based company generates 99.4% of its revenues from restaurant sales (67% from Benihana Teppanyaki, 24% from RA Sushi and 9% from Haru) and the remaining 0.6% from franchisee fees and royalty.
The company reported positive sales for the first four-week period of the first quarter of 2012 and is undertaking promotional and marketing initiatives to attract more customers. Apart from Benihana Teppanyaki and RA Sushi restaurant, traffic is also expected to improve at Haru in the month of May.
The company has a Zacks #2 Rank, which translates into a short-term Buy rating. We also reiterate our long-term Neutra recommendation on the stock.
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 operational in the U.S., Latin America and the Caribbean. Its prime competitors are McCormick & Schmick’s Seafood Restaurants Inc. (MSSR) and P.F. Chang’s China Bistro Inc. (PFCB).
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