Total revenues for the thirteen-week period ended March 30, 2002, representing a record first quarter for the company, were $8,179,000, an increase of 14.6% over total revenues for the thirteen weeks ended March 31, 2001. The increase is the result of improvements in same-store sales over the thirteen weeks ended March 31, 2001, as well as revenues from the opening of four new company-operated restaurants since March 31, 2001. A 17.5% increase in royalty fees due to net growth of seven franchised stores since March 31, 2001, also contributed to the increase.
The company also reported record first quarter income for the thirteen-week period ended March 30, 2002. Net income increased 45.5% for the first quarter of 2002 to $227,000, or $.04 per diluted share, from $156,000, or $.03 per diluted share, during the first quarter of 2001. The increase is primarily due to the revenue growth described above as well as improved margins at company-operated restaurants. The company has reported increases of 40.0% or more in net income over the same quarter in the prior year for nine consecutive quarters.
Same-store sales for the first quarter of 2002 increased 4.4% over the comparable period in 2001 for company-operated restaurants and 0.8% for franchised restaurants. The company has reported year-over-year same-store sales growth for five consecutive quarters for company-operated restaurants and for two consecutive quarters for franchised restaurants.
Unit activity for the quarter included two company-operated store openings, two franchised store openings and two franchised store closings. Of the two franchised openings, one included the opening of the first co-branded restaurant under the Multi-Brand Development Agreement the company entered with Tricon Global Restaurants, Inc. on January 2, 2002. This outlet is located in Shepherdsville, Kentucky, and was an existing Taco Bell converted into a Taco Bell-Back Yard Burgers co-branded restaurant. Under the terms of the Development Agreement, Back Yard Burgers granted Tricon the right to use the Back Yard Burgers trademarks in the United States in connection with the establishment and operation of up to ten Back Yard Burgers outlets as part of multi-brand units with Taco Bell, Pizza Hut and/or KFC operations. It is anticipated that the first ten outlets will be constructed and opened by the end of 2003. The Development Agreement also grants to Tricon an option to co-brand up to 500 additional restaurants within certain geographic areas if the development schedule for the initial ten outlets is being met.
As of March 30, 2002, the company's restaurant system comprised 106 units, including 39 company-operated stores and 67 franchised stores. Expansion plans for the remainder of 2002 include four company-operated stores, seven franchised stores and five outlets co-branded with Taco Bell, Pizza Hut and/or KFC operations under the agreement with Tricon Global Restaurants, Inc.
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