Pancho’s Mexican Buffet, Inc. (Nasdaq: PAMX) announced January 28, 2000 its financial results for the fiscal first quarter ended December 31, 1999. All share information is adjusted for the one-for-three reverse stock split which was effective January 28, 1999.
For the quarter ended December 31, 1999, the company incurred a net loss of $377,000, or $.26 per share, compared with net earnings of $114,000, or $.08 per share, for the same quarter last year. Total sales for the quarter were $13.3 million compared to sales of $13.8 million for the same period last year. Sales decreased $147,000 due to the temporary closing of the Mesquite, Texas restaurant in October and November 1999 for a complete remodel and makeover as part of Pancho’s reimaging strategy.
“Costs were higher this quarter due to one-time implementation costs associated with rolling out new recipes, new menus, new uniforms, new salsa bars and new POS software, and in opening our new Pancho’s Buffet & Grill(TM). With most of those costs behind us, we expect positive results in future quarters,” said Hollis Taylor, president and chief executive officer.
“Since it reopened December 2, 1999, customers have been lining up to dine at our new Pancho’s Buffet & Grill(TM), our new prototype remodel in Mesquite, Texas,” added Taylor.
“While it is too early to know the long-term sales increase this remodeled concept will generate, we are receiving excellent response from customers and we are optimistic about its potential. Meanwhile, we are developing plans to continue our reimaging campaign throughout our remaining restaurants in order to increase their performance.”
The new Pancho’s Buffet & Grill(TM) concept features a fresh look with a lively, upbeat interior design and a new logo. It also features an expanded buffet line with exhibition grill cooking, new recipes and updated kitchen equipment and cooking procedures.
Same-store sales declined 2.4% for the 2000 first quarter compared to the 1999 first quarter. Average first quarter sales per unit were $279,000 in 2000, compared to $287,000 for the first quarter of 1999.
Based in Fort Worth, Pancho’s Mexican Buffet, Inc. is the only publicly held company offering all-you-can-eat Mexican food in a buffet-style format. The company operates 48 restaurants in Texas, Arizona, Louisiana, New Mexico and Oklahoma.
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