For Immediate Release
Chicago, IL – August 13, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bob Evans Farms (BOBE), Cosi Inc. (COSI), California Pizza Kitchen (CPKI), Red Robin Gourmet Burgers (RRGB) and Famous Dave’s of America (DAVE).
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Here are highlights from Wednesday’s Analyst Blog:
Bob Evans Cooks Up Profits
Total revenue for Bob Evans Farms’ (BOBE) quarter under review dropped 2.5% to $429.5 million, driven by same-store sales declines at Bob Evans Restaurants (down 3.0%) and Mimi’s Café (down 6.4%). For fiscal year 2010, management expects same-store sales to decline in the range of 2.0% to 2.5% at Bob Evans Restaurants and 4.0% to 6.0% at Mimi’s Café.
The company’s Restaurant segment revenue fell 2.3% to $359.8 million, whereas the Food Product segment revenue dipped 3.4% to $69.7 million.
Bob Evans operates in the casual dining segment, where operators are either postponing their restaurant openings or slowing restaurant unit growth in an attempt to bolster traffic and reduce costs. The company expects to open two Mimi’s Café outlets (compared to 12 opened in 2009), and no new Bob Evans Restaurants (compared to one opened in 2009) in fiscal year 2010. In fiscal years 2008 and 2007, Bob Evans opened 19 locations (17 Mimi’s Café and 2 Bob Evans Restaurants) and 23 locations (13 Mimi’s Café and 10 Bob Evans Restaurants), respectively.
With the decline in restaurant openings in fiscal year 2010, Bob Evans lowered its capital expenditure and now expects it to be in the range of $60 million to $65 million, down from $96.0 million and $121.0 million in fiscal years 2009 and 2008, respectively. The company also suspended its share buyback program until the third quarter of fiscal year 2010.
The casual dining segment is facing the brunt of the recession with falling same-store sales and declining traffic. Consumers with lower disposable income are either shifting to quick service restaurants because of their lower priced menu or are dining at home. In the casual dining segment, Bob Evans Farms competes with Cosi Inc. (COSI), California Pizza Kitchen (CPKI), Red Robin Gourmet Burgers (RRGB) and Famous Dave’s of America (DAVE).
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