Bravo Brio Restaurant Group, Inc., owner and operator of the BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO) restaurant concepts, reported financial results for the 13-week period ended March 27. The company also reiterated its earnings outlook for the full year 2016.
Selected First Quarter 2016 Highlights Compared to the First Quarter 2015:
- Revenues increased 0.6 percent to $108.8 million from $108.2 million.
- Total comparable restaurant sales decreased 2.8 percent.
- Comparable restaurant sales decreased 4.1 percent at BRAVO! and 2.1 percent at BRIO.
- Restaurant-level operating profit remained flat at $15.8 million.
Brian O'Malley, president and chief executive officer, says, “We are fully focused on enhancing the guest experience through menu innovation, service, and restaurant design. Returning to our heritage of culinary innovation and implementing other operational programs have already increased guest satisfaction scores. Our focus on these programs should ultimately improve guest traffic and comparable restaurant sales. We have successfully emphasized social media and digital marketing of limited-time offers in the first quarter and look forward to enhancing our carryout business with the rollout of our new online ordering platform late in the second quarter.”
O’Malley continues, "We opened two BRAVO!s in the first quarter in Grand Rapids, Michigan, and Beavercreek, Ohio, and are on track to open a third restaurant, a BRIO, in Torrance, California, in the fourth quarter. Additionally, we repurchased $1.3 million of our common shares under our $15 million share repurchase program as we continue to return capital to our shareholders.”
First Quarter 2016 Financial Results
Revenues increased $0.6 million, or 0.6 percent, to $108.8 million in the first quarter of 2016, from $108.2 million in the first quarter of 2015. The increase in revenues was primarily due to a net additional 70 operating weeks that was partially offset by a 2.8 percent decrease in comparable restaurant sales. The comparable restaurant sales decrease consisted of a 3 percent decrease in guest counts partially offset by a 0.2 percent increase in average check.
Total restaurant operating costs, which includes costs of sales, labor costs, operating costs and occupancy costs, increased $0.6 million, or 0.7 percent, to $93 million in the first quarter of 2016, from $92.4 million in the first quarter of 2015. Total restaurant-level operating profit remained flat at $15.8 million as compared to the same period last year. As a percentage of revenues, total restaurant-level operating profit in the first quarter of 2016 held steady year-over-year at 14.6 percent.
First Quarter 2016 Brand Operating Highlights
Comparable restaurant sales decreased 4.1 percent at BRAVO! and 2.1 percent at BRIO. Average weekly sales for BRAVO! and BRIO were $58,600 and $82,300, respectively.
During the first quarter of 2016, the company opened BRAVO restaurants in Grand Rapids, Michigan, and Beavercreek, Ohio. As of March 27, the company operated 53 BRAVO! restaurants, 64 BRIO restaurants, and one Bon Vie restaurant across 33 states. Included in this total is one BRIO restaurant that is operated under a management agreement. Additionally, one BRIO restaurant is operated under a franchise agreement.
The company is providing the following outlook for the 52-week period ending December 25:
- Revenues of $424 million to $432 million.
- Total comparable restaurant sales of minus 2 percent to flat.
- Development of three Company-operated restaurants.
- Pre-opening costs of approximately $1.5 million (previously $1.5 million to $2.0 million).
- Diluted earnings per share of $0.65 to $0.73.
- Capital expenditures of $12.0 million to $14.0 million.
- Diluted share count of approximately 15.5 million.
- Estimated annual tax rate of approximately 19 percent to 22 percent (previously 20 percent to 23 percent).