Ignite Restaurant Group reported financial results for the first quarter ended March 28.
Highlights for the first quarter of 2016 were as follows:
- Total revenues were $117.9 million, compared to $122.2 million in the first quarter of 2015.
- Comparable restaurant sales decreased 1.8 percent company-wide, comprised of a 1.3 percent decrease at Joe’s Crab Shack and a 4.5 percent decrease at Brick House Tavern + Tap.
Robert S. Merritt, chief executive officer of Ignite Restaurant Group, says, “We are encouraged by the results that we continue to experience from our weekday value initiatives including the All You Can Eat crab offering on Wednesdays. We generated positive comparable restaurant sales at Joe’s for most of the quarter but were negatively affected by the Easter holiday shift into March this year. We rolled out a new menu this week at Joe’s and Brick House that we believe will positively impact sales and execution in both brands. Both of the menus have a reduced number of items which will provide an opportunity to reduce ticket times while also offering the items that are most popular with our guests.”
Review of First Quarter 2016 Operating Results
- Total revenues were $117.9 million in the first quarter of 2016, a decrease of 3.5 percent compared to $122.2 million in the first quarter of last year.
- Revenues at Joe’s Crab Shack were $96.2 million during the first quarter of 2016 versus $103.1 million in the prior year first quarter. Comparable restaurant sales at Joe’s Crab Shack decreased 1.3 percent.
- Revenues at Brick House Tavern + Tap were $21.7 million in the first quarter of 2016 compared to $19.1 million in the prior year first quarter. Comparable restaurant sales at Brick House Tavern + Tap decreased 4.5 percent.
During the first quarter of 2016, the company opened three Brick House restaurants (located in Latham, New York, Sugarland, Texas, and Methuen, Massachusetts), all of which were conversions from Joe’s restaurants.
At March 28, the company had $7.5 million of cash and approximately $25.9 million of available borrowing capacity under its current credit facility. The company was in compliance with the financial covenants under the credit facility.