Back Yard Burgers, Inc. (Nasdaq SmallCap:BYBI) announced July 25 results for the second quarter of 2000.
Total revenues for the thirteen weeks ended July 1, 2000 decreased 0.1% to $7,759,000 from $7,763,000 in the year-earlier period, due to a decrease in same-store sales offset by incremental sales from the acquisition of three franchised stores during May of 2000 and an increase in royalty fees from the year-earlier period. EBITDA increased 39.1% to $850,000 for the second quarter of 2000 from $611,000 in the year-earlier period. Net income increased 154.0% for the quarter to $221,000 or $.05 per diluted share, from $87,000 or $.02 per diluted share, during the second quarter of 1999. EBITDA and net income for the quarter were positively impacted by a $153,000 gain on the sale of a previously closed store.
Total revenues for the first half of 2000 decreased 1.9% to $14,333,000 from $14,614,000 in the prior year. EBITDA for the twenty-six weeks ended July 1, 2000, was $1,394,000 compared to $1,135,000 in the year-earlier period, and net income increased by 121.7% to $286,000 from $129,000 in 1999.
Same-store sales for the second quarter and the year-to date period decreased 8.2% for company-operated restaurants, and same-store sales at franchised restaurants decreased 4.0% for the second quarter and 3.5% for the year-to-date period.
"We are committed to the decisions made during the latter half of 1999 to reduce our coupon and discount programs and focus on enhancing the quality of our existing products," commented Lattimore Michael, chairman and CEO. "We are still experiencing declines in same-store sales, but a large portion of these sales declines were related to the lower margin discounted sales. As a result, our company-wide operating margin and profitability has improved over the prior year even though same-store sales have declined.''
During the second quarter of 2000, the company purchased the operating businesses, including personal property, of Back Yard Burgers franchised stores located in Jackson, Tennessee, Tupelo, Mississippi, and Jonesboro, Arkansas, from a franchisee, KEA Foods, effective May 7, 2000. Other store activity included one franchised store opened in each of Kansas City, Missouri, Wilmington, North Carolina and Hickory, North Carolina. The company anticipates one company-operated and at least six additional franchised restaurants to open during the last half of 2000.
As of July 1, 2000, the Company's restaurant system comprised 90 units, including 37 company-operated stores and 53 franchised stores.
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