Bojangles’, Inc. announced financial results for the 13-week fourth fiscal quarter and 52-week fiscal year ended December 25, 2016. Bojangles’ also provided annual guidance for the 53-week fiscal year 2017 ending on December 31, 2017.
Highlights for the Fourth Fiscal Quarter 2016 Compared to the Fourth Fiscal Quarter 2015
System-wide comparable restaurant sales increased 2.4 percent, while company-operated comparable restaurant sales increased 1.1 percent and franchised comparable restaurant sales increased 3.2 percent.
Total revenues increased 8.3 percent to $139.4 million from $128.8 million.
Twenty-one system-wide restaurants were opened—nine company-operated restaurants and 12 franchised restaurants.
Net Income increased 25.2 percent to $9.8 million from $7.8 million.
Highlights for Fiscal Year 2016 Compared to Fiscal Year 2015
System-wide comparable restaurant sales increased 1.3 percent, while company-operated comparable restaurant sales increased 1.1 percent and franchised comparable restaurant sales increased 1.5 percent.
Total revenues increased 8.9% to $531.9 million from $488.2 million.
Fifty-eight system-wide restaurants were opened—29 company-operated restaurants and 29 franchised restaurants.
Net Income increased 42.2 percent to $37.7 million from $26.5 million.
“We are pleased the Bojangles’ system has now achieved 27 consecutive quarters of comparable restaurant sales growth through the fourth fiscal quarter of 2016 and that Adjusted Diluted Net Income per Share growth for fiscal year 2016 exceeded our annual guidance despite widespread softness affecting the limited service restaurant category,” says Bojangles’ president and CEO Clifton Rutledge.
“Ahead of Bojangles’ 40th anniversary celebration in July, we are as focused as ever on executing our strategic plans and building the brand in a measured and sustainable way. We will continue developing restaurants in core and adjacent markets through our company-operated and franchised model, with our long-term goal of franchising leading our expansion efforts over time. We are striving to offer the best dining experience possible through exceptional service, menu innovation, and compelling limited time offers that solidify our reputation for unique, great tasting, freshly-made food, at an exceptional value. Together with our franchisees, we are also exploring technology solutions such as mobile payment, apps and loyalty programs that will elevate our customer interactions,” he added.
“Our first ‘Bojangles’ of the Future’ restaurant in Greenville, South Carolina, is getting rave reviews and it will be followed by the opening of a second location in Charlotte, North Carolina later this year. We expect this exciting new restaurant prototype to set the standard for Bojangles' restaurants as we continue testing the various elements of this new design. Although we recognize and are addressing near-term headwinds affecting our business, we have also never been more energized about the future of this company.”
Fourth Fiscal Quarter 2016 Financial Review
System-wide comparable restaurant sales increased 2.4 percent, consisting of a 1.1 percent increase in company-operated comparable restaurant sales and a 3.2 percent increase in franchised comparable restaurant sales. The comparable restaurant sales increase at company-operated restaurants was composed of increases in price, partially offset by a decrease in transactions and mix.
Total revenues increased 8.3 percent to $139.4 million in the fourth fiscal quarter of 2016 from $128.8 million in the prior year fiscal quarter. The increase was primarily due to a net additional 54 system-wide restaurants at December 25, 2016 compared to December 27, 2015, and comparable restaurant sales growth at our company-operated and franchised restaurants.
Company restaurant revenues increased 8.2 percent to $132.2 million in the fourth fiscal quarter of 2016 from $122.2 million in the prior year fiscal quarter. Franchise royalty revenues increased 7.4 percent to $6.8 million in the fourth fiscal quarter of 2016 from $6.4 million in the prior year fiscal quarter.