Schlotzsky's Inc. (Nasdaq:BUNZ) announced April 26 its financial results for the quarter ending March 31, 2000.Total revenues for the first quarter of 2000 increased 28% over the same time period in 1999 to $13.1 million. For the 21st consecutive quarter, same store sales were a positive 5.7% for the first quarter of 2000. Average weekly sales increased 10.7% to $10,951 during the first quarter of 2000 as compared to the same time period in 1999.
In addition, for the five-week period of March 2000, same store sales increased 9.4% over the same time period in 1999, and average weekly sales increased 15.5% to $11,793. Schlotzsky's 2000 national network television advertising campaign began on March 6 of this year, whereas in 1999 the debut advertising campaign did not commence until April.
Systemwide sales for the first quarter of 2000 for all restaurants in the Schlotzsky's franchise system (including both franchised restaurants and restaurants owned by the Company) were $104.2 million, a 13% increase as compared to the same time period in 1999. Revenue from restaurant operations for restaurants owned by the Company was $4.4 million, a 73% increase over the first quarter for 1999. Brand contribution revenues also increased, rising to $1.6 million for the quarter, a 33% increase over the same time period in 1999.
First quarter earnings for 2000, after the cumulative effect of change in accounting principle, were $1.2 million, or $0.16 per share, as compared to a negative $0.35 per share in the first quarter of 1999. However, a comparison of earnings per share prior to this change would show that earnings per share were equal in the first quarter of 1999 and 2000.
As previously announced, the Company has adopted a new accounting principle, effective January 1, 1999, for the financial reporting of revenue generated as non-refundable area developer fees. The application of this new principle resulted in the recognition of the entire $3.82 million cumulative effect in the first quarter of 1999. This principle is consistent with recently published views of the SEC staff. Financial information previously reported in the 1999 first quarter results was also affected by this change. The new accounting principle has no cash impact on the Company.
Schlotzsky's Inc., founded in Austin in 1971, is a franchisor of quick service restaurants featuring made-to-order hot sandwiches served on distinctive sourdough bread, along with sourdough crust pizzas, salads and soups. At the end of the first quarter of 2000, there were 750 Schlotzsky's restaurants operating in 38 states, the District of Columbia and 13 foreign countries.
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