Benihana Inc.(BNHN), the leading Asian restaurant chain in the United States, posted restaurant sales of $22.7 million for the four-week period ending February 27, 2011, up 4.6% from $27.9 million in the year-ago period. The increased sales were driven by higher customer visitation despite bad weather conditions.
The company’s comparable restaurant sales climbed 5.1% for the period, representing the thirteenth consecutive period of growth. In the first four-week period of the fourth quarter of 2011, both restaurant sales and same-store sales spiked up 4.4%.
The comparable restaurant sales jumped 6.8% at Benihana Teppanyaki restaurants, on the back of higher guest count (up 7.3%) resulting from Benihana Teppanyaki Renewal Program. The same-store sales also increased 1.2% at RA Sushi restaurant and 2.1% at Haru in the second four-week period of fourth quarter 2011, benefiting from higher traffic. During the first four-week period ending January 30, Benihana Teppanyaki restaurants same-store sales escalated 5.7% year over year and 5.2% at RA Sushi restaurant, but plunged 6.1% at Haru, due to inclement winter weather in the Northeast.
Store operating weeks during the period were 1.0% lower than the year-ago period.
The Zacks Consensus Estimate for sales during the fourth quarter of 2011 is $79 million. We, however, note that in the two four-week periods of the fourth quarter, the company has already generated revenues worth $25.6 million and $27.9 million, respectively. Additionally, the company is undertaking promotional and marketing initiatives to attract more customers.
The company has a Zacks #3 Rank, which implies a short-term Hold recommendation on the stock. We also reiterate our long-term Neutral rating.
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. Its prime competitors are McCormick & Schmick’s Seafood Restaurants Inc. (MSSR) and P.F. Chang’s China Bistro Inc. (PFCB).
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