The largest U.S. chain of Japanese restaurants, Benihana Inc (BNHN), posted restaurant sales of $26.9 million for the four-week period ending May 22, 2011, up 4.5% from $25.8 million in the year-ago period. Results reflect the benefits of the Benihana Teppanyaki Renewal Program, which the company initiated in 2009 to improve the dining experience of the guests at Benihana Teppanyaki restaurants.
The company’s comparable restaurant sales grew 4.8% in the second four-week period of the first quarter of 2012, representing the sixteenth consecutive period of growth. In the first four-week period of the first quarter of 2012, both restaurant sales and same-store sales spiked 5.8%.
The comparable restaurant sales jumped 7.9% at Benihana Teppanyaki restaurants, attributable to a 8.5% rise in guest count. However, due to inclement weather condition and construction scaffolding outside two Haru restaurants, same-store sales plummeted 2.3% at Haru. During the first four-week period ending April 24, Benihana Teppanyaki restaurants' same-store sales escalated 9.0% year-over-year, but plunged 5.3% at Haru.
After posting positive comps for five consecutive quarters, same-store sales at RA Sushi restaurant dipped 0.7% during the period, due to lower traffic arising from the challenging economic environment.
Store operating weeks during the period were 0.8% lower than the year-ago period due to the closure of a Haru restaurant in Philadelphia.
The Miami-based company generates 99.4% of its revenues from restaurant sales (68% from Benihana Teppanyaki, 23% from RA Sushi and 9% from Haru) and the remaining 0.6% from franchisee fees and royalties.
The company continues to report positive sales for the second four-week period of the first quarter of 2012 and is undertaking promotional and marketing initiatives to attract more customers.
The company has a Zacks #3 Rank, which translates into a short-term Hold rating. We also reiterate our long-term Neutral recommendation on the stock.
Benihana operates 97 restaurants, including 63 Benihana Teppanyaki restaurants, 25 RA Sushi Bar restaurants and 8 Haru Sushi restaurants. Additionally, the company has 20 franchised Benihana Teppanyaki restaurants, which are operational in the U.S., Latin America and the Caribbean. Its prime competitors are McCormick & Schmick's Seafood Restaurants Inc. (MSSR) and P.F. Chang's China Bistro Inc. (PFCB).
BENIHANA INC (BNHN): Free Stock Analysis Report
MCCORMICK&SCHMK (MSSR): Free Stock Analysis Report
Be the first to comment