Restaurant closures push Mexican Restaurants to first-quarter loss
01.03.2007, 15:39
Restaurant closure costs and a loss from discontinued operations were responsible for Mexican Restaurants Inc. turning in a first-quarter net loss, the company said Tuesday.
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The Houston-based, Mexican-restaurant company reported a net loss for the first quarter ended April 1 of $69,544 or 2 cents per share, on revenue of $20.5 million, compared with net income of $765,946 or 21 cents per share, on revenue of $20.8 million, for the same period in 2006.
The 1 percent decline in revenue largely reflected a $1.6 million drop in same-restaurant sales, the company added.
"The decline in same-restaurant sales for the first quarter resulted from lower consumer traffic, rising gas prices and inclement winter weather," said Curt Glowacki, chief executive officer of Mexican Restaurants. "In addition, we were up against some incredible comparative same-store sales from the first quarter last year."
Glowacki added that the company plans to expand its catering and to-go business, selectively raise menu prices to compensate for rising commodity prices and the anticipated minimum wage hike, and reduce general and administrative expenses.