Ignite Restaurant Group, whose portfolio of restaurant concepts includes Joe's Crab Shack, Romano's Macaroni Grill and Brick House Tavern + Tap, reported financial results for the second quarter ended June 30, 2014.
Total revenues were $229.8 million, compared to $228.1 million in the second quarter of 2013. Comparable restaurant sales increased 8.5 percent at Brick House Tavern + Tap, decreased 4.7 percent at Joe's Crab Shack, and decreased 2.6 percent at Macaroni Grill.
"Our second quarter results were challenged as we faced what we believe were residual effects of 2014's winter weather, combined with some cannibalization of Joe's Crab Shack sales as we significantly increased the number of locations in the Northeast over the past three years," says Ray Blanchette, CEO of Ignite Restaurant Group.
"Results at Macaroni Grill were generally in line with our internal expectations; however, our team continues to focus on a robust pipeline of initiatives to drive sales growth and improve profitability. We remain pleased with the ongoing sales success at Brick House Tavern + Tap and with the improvements in store level execution. Our near-term development strategy is expected to provide further opportunities to expand the Brick House concept as we continue to optimize our real estate portfolio through conversions."
Review of Second Quarter 2014 Operating Results
Total revenues were $229.8 million in the second quarter of 2014, an increase of 0.8 percent compared to $228.1 million in the second quarter of last year. The increase was largely driven by the inclusion of Macaroni Grill for the full 13 weeks of the second quarter of 2014, versus 12 weeks for the comparable period of 2013 and new restaurant development, partially offset by a 3.1 percent decrease in comparable restaurant sales.
- Revenues at Joe's Crab Shack were $125.5 million during the second quarter of 2014 versus $129.6 million in the prior year. Comparable restaurant sales at Joe's Crab Shack decreased 4.7 percent.
- Revenues at Brick House Tavern + Tap were $17.8 million in the second quarter of 2014 compared to $12.5 million in the prior year. Comparable restaurant sales at Brick House Tavern + Tap increased 8.5 percent.
- Revenues at Macaroni Grill were $86.6 million in the second quarter of 2014 compared to $86.0 million in the prior year. Comparable restaurant sales at Macaroni Grill decreased 2.6 percent. Macaroni Grill was acquired on April 9, 2013.
Net income for the second quarter of 2014 was $1.8 million. The Company's net income for the second quarter of 2014 included approximately $330,000 of costs related to three restaurant closures, losses on disposal of assets, and transaction related costs.
Net loss for the second quarter of 2013 was $2.5 million. The Company incurred approximately $5.3 million of primarily acquisition related and labor related transition costs in connection with the acquisition of Romano's Macaroni Grill in the second quarter of 2013.
During the second quarter of 2014, the Company closed three Macaroni Grill locations. Of these closures, one has been converted and re-opened as a Brick House Tavern + Tap and one is currently under construction and will re-open as a Brick House restaurant in the fourth quarter of 2014 or in early 2015. Subsequent to the end of the second quarter, three additional Macaroni Grill locations were closed in July for a total of eight Macaroni Grill closures year to date.
