Fogo de Chão, Inc. reported financial results for its 13-week fiscal second quarter ended July 3.
Key Highlights for the Second Quarter of 2016 Include:
Total revenue was $69.6 million for the 13-week quarter ending July 3, which represents 2 percent growth over the same quarter last year or 4.2 percent growth on a constant currency basis.
Company-owned comparable restaurant sales decreased 1.6 percent on a constant currency basis.
Announced the partnership with Enany Group to open the first Fogo in Jeddah, Saudi Arabia, which will be the company’s second international joint venture restaurant.
Completed construction on our suburban Philadelphia location that opened in King of Prussia Town Center on July 21.
“We continue to drive positive traffic in the US this quarter, up 0.6 percent, and our traffic outpaced our peers by 310 and 150 basis points as reported on the Knapp Track High End Steakhouses and Blackbox Upscale/Fine Dining group indexes,” says Larry Johnson, chief executive opfficer of Fogo de Chão, Inc. “In today’s softening sales environment, guests are placing greater emphasis on value, customization, variety and speed of service, and we believe that our strategies are designed to deliver on these needs.”
Second Quarter 2016 Financial Results
Total revenue for the second quarter of 2016 was $69.6 million compared to $68.2 million in the second quarter of 2015. The $1.3 million increase is attributable to new restaurant locations opened in the last 12 months, partially offset by a $1.4 million negative foreign exchange impact. On a constant currency basis, revenues for the second quarter increased 4.2 percent over the same quarter last year. Company-owned comparable restaurant sales, which include both U.S. and Brazil restaurants, decreased 1.6 percent.
U.S. restaurant revenue increased 5.8 percent to $59.3 million in the second quarter of 2016 from $56.1 million in the second quarter of 2015 primarily due to new restaurant locations opened in the last 12 months, partially offset by U.S. company-owned comparable restaurant sales decrease of 1.1 percent.
Brazil restaurant revenue was $10.2 million in the second quarter of 2016 compared to $12.1 million in the second quarter of 2015. The decrease in revenue compared to last year was driven largely by a $1.4 million foreign exchange impact, and a comparable restaurant sales decrease of 4 percent as the recession in Brazil continues to impact guests. Excluding the impact of foreign exchange, Brazil revenues for the second quarter decreased 4.3 percent over the prior year period on a constant currency basis.
In addition to the restaurant opening in the King of Prussia Town Center, the company currently plans to open as many as five additional restaurants during the remainder of fiscal 2016, including three company operated domestic restaurants and two international joint venture restaurants.
Fogo de Chão’s three planned company-owned U.S. restaurants will open in cities where the brand has already developed a strong guest base and experienced proven success.
Dunwoody, Georgia—Building on the success of Fogo’s Buckhead location, its second Atlanta-area restaurant will open just north of the city in Dunwoody, renowned for its premium shopping, high-end restaurants and hotels, and family-focused cultural festivals.
Dallas Uptown, Texas—Located in the heart of Uptown Dallas, this second area location will open at the corner of McKinney and Routh. With its luxury residences and a vibrant shopping, entertainment and social scene, Uptown is a lively and unique Dallas destination.
Tysons, Virginia—Known as “America’s next great city,” Tysons is home to a broad assortment of shopping, fine dining and hotels, making it a global travel destination and the ideal spot for Fogo’s second location in greater Washington D.C.