Applebee's Posts Higher Profit, Cuts View :: Restaurant Supply Resource

Applebee's Posts Higher Profit, Cuts View

Click here for financial tables

Applebee's International Reports Third Quarter Diluted Earnings Per Share of $0.34 and Updates 2004 Outlook

Applebee's International, Inc. (Nasdaq:APPB) reported net earnings of $28.3 million, or $0.34 per diluted share, for the third quarter ended September 26, 2004. This compares to net earnings of $25.6 million, or $0.30 per diluted share, for the third quarter of 2003.

System-wide comparable sales for the third quarter of 2004 increased 2.7 percent, the 25th consecutive quarter of comparable sales growth. Company and franchise restaurant comparable sales increased 1.1 percent and 3.1 percent, respectively, for the quarter. System-wide comparable sales for the year-to-date period through September increased 5.6 percent, with company and franchise restaurant comparable sales up 5.0 percent and 5.9 percent, respectively.

The company also reported comparable sales for the September fiscal period, comprised of the five weeks ended September 26, 2004. System-wide comparable sales increased 1.1 percent for the September period, and comparable sales for franchise restaurants increased 1.5 percent. Comparable sales for company restaurants decreased 0.1 percent, reflecting a decrease in guest traffic of approximately 1.0 to 1.5 percent, offset by a higher average check. As previously noted, the Olympics had a negative impact on sales for the first week of the September period. Several hurricanes also negatively impacted franchise comparable sales by approximately 0.5 percent during the month.

In addition, the company reported comparable sales for the October fiscal period, comprised of the four weeks ended October 24, 2004. System-wide comparable sales increased 1.7 percent for the October period, and comparable sales for franchise restaurants increased 2.4 percent. Comparable sales for company restaurants decreased 0.4 percent, reflecting a decrease in guest traffic of a similar amount, combined with a flat average check. The company noted that its Skillet Sensations(TM) promotion, which ran for three weeks during the October period, had lower price points than the prior year promotion, resulting in a negative impact on the average check. This promotion will run through the first two weeks of the November period. The October period also had one less week of advertising in comparison to the prior year. In addition, company restaurant sales were negatively impacted by the baseball playoffs and World Series as 26 percent of the company-owned restaurants are in St. Louis and New England. System-wide comparable sales for the year-to-date period through October have increased 5.3 percent, with company and franchise restaurant comparable sales up 4.5 percent and 5.5 percent, respectively.

Lloyd L. Hill, chairman and chief executive officer, said, "Consistent with what we've seen throughout the casual dining segment, our comparable sales and traffic growth slowed toward the end of the summer. Whether due to rising gasoline prices, economic uncertainty, or the upcoming election, consumer spending appears to have been more restrained recently. While we are not immune to these forces, we believe that our long-term strategies for continued growth are the right ones. We remain focused on improving operations throughout the system, as well as optimizing our key strategies for the remainder of the year."

Discuss this article

Date Listed: 2004-10-28

More news about:
Industry: Restaurants
Category: Financial
Applebees
Mail Me Print Me


	Main Categories Search Submit Help/FAQ Feedback


	Industries: Hotel \| Restaurant		Thursday, November 25, 2004
	Restaurant Industry: News \| Jobs \| Discussions \| Real Estate \| Resources \| Suppliers \| Tradeshows \| Trends