Rubio’s Restaurants Inc. (NASDAQ: RUBO) today announced that revenues for the second quarter of 2003 rose 2.4% to $31.4 million over the same period last year. Comparable store sales increased 0.3% over the same period a year ago, marking the seventh consecutive quarter of positive comparable store sales.

Despite the increase in revenues, the company sustained a net loss of $3.15 million, or $0.35 per diluted share, for the 2003 second quarter, compared with net income of $1.13 million, or $0.12 per diluted share, for the same period a year ago.

Rubio’s said the second quarter loss includes a $2.7 million pre-tax charge for asset impairment on a number of underperforming stores, some of which had been partially written down previously. In addition, the company increased its reserves for workers’ compensation costs by $1 million pre-tax, due to several recent unusually costly claims.

Saying the company was disappointed with the quarter’s performance, Ralph Rubio, chairman and chief executive officer, said, “Costs associated with the company’s system-wide concept upgrade program, known as evolution, which was launched in the spring of 2002, were higher than those experienced in early test markets. Substantial shifts in product mix from evolution and the quarter’s product promotions drove much of the added costs, as well as higher investment and start-up costs.”

Rubio’s provided guidance for full year EPS at a loss of $0.25 to $0.30 per diluted share.