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Back Yard Burgers, Inc. (Nasdaq SmallCap:BYBI) today announced an increase in total revenues to $8.5M for the 13-week period ended December 28, 2002, 10.3% over the same period in 2001. The company primarily credits the net store unit growth of 14.4% over the prior year for the increase.
Revenues for the year ended December 28, 2002 increased 11.4% to $34.7M in 2002 from $31.1M in the prior year. Net income increased 43.8% to $1.5M, or $0.29 per diluted share, from $1.027M, or $0.22 per diluted share in the prior year.
Net income for the fourth quarter was $327,000, or $.07 per diluted share, an increase of 41.6% over net income of $231,000, or $.05 per diluted share, for fourth quarter 2001. Pre-tax income for the quarter was reduced by $111,000 for a reserve on a note receivable from a former franchisee and $70,000 for a land lease reserve relating to a restaurant building the company assumed as collateral under the provisions of the note.
Same-store sales for company-operated restaurants decreased 3.4% for the fourth quarter, and increased 0.1% for the year ended December 28, 2002. Same-store sales for franchised restaurants decreased 5.7% for the quarter, and 1.8% for the year. Management attributed the decline in same-store sales during the fourth quarter of 2002 to a decline in traffic counts due to competitive discounting.
Unit activity for the quarter included two company-operated store openings and five franchised store openings (including one co-branded restaurant with Taco Bell operations under the company's Multi-Brand Development Agreement with YUM! Brands, Inc.).
As of December 28, 2002, the company's restaurant system comprised 119 units, including 42 company-operated stores and 77 franchised stores. Expansion plans for fiscal year 2003 include three company-operated stores and 20 or more franchised stores (including five co-branded restaurants with Taco Bell operations under the agreement with YUM! Brands, Inc.).