Pancho's Mexican Buffet, Inc. (Nasdaq: PAMX) reported May 8 net earnings for the second fiscal quarter ended March 31, 2000.
For the quarter ended March 31, 2000, net earnings were $840,000, or $0.58 per share, compared to net earnings of $562,000, or $0.38 per share, for the same quarter in 1999. These results include benefits from reducing insurance reserves by $883,000 in the second quarter of 2000 compared with $248,000 in the second quarter of 1999. The 2000 second quarter earnings include $30,000 in gain on sale of assets, versus $127,000 for the 1999 quarter.
Second quarter sales were $14.2 million in 2000 compared to $14.4 million in 1999. Same-store sales decreased 1.4% for the recent second quarter. Average sales per unit were $294,000 for the quarter just ended compared to $298,000 for the same period in 1999.
For the six months ended March 31, 2000, net earnings were $463,000, or $0.32 per share, compared to $676,000, or $0.46 per share, for the same period in 1999. These results include benefits from reducing insurance reserves by $1,020,000 in the first half of 2000 compared with $248,000 in the first half of 1999. The 2000 first half results include $11,000 in gain on the sale of assets, compared to $237,000 for the first half of 1999.
Total sales were $27.5 million for the first half of 2000 versus $28.1 million for the first six months of 1999. Same-store sales were down 2.5% for the first six months of 2000 compared with the same period in fiscal 1999. Average unit sales were $567,000 for 2000 compared with $585,000 for 1999.
"We are converting two Pancho's units into our recently announced Panchito's $3.99 Buffet restaurants in the quarter ending June 30, 2000, as part of our conversion plan that was announced at our annual meeting in February," said Hollis Taylor, president and chief executive officer. "We believe this brand extension will make these two units more competitive and increase customer counts with the great value and convenience this new concept offers. If this strategy proves to be successful, we will roll out this new concept to other units in select markets."
"Our Pancho's Buffet and Grill concept which opened in Mesquite, Texas, this past December continues to produce sales at 75% above the company average," Mr. Taylor continued. "We are confident that this new design and brand extension will be our flagship for the future."
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.