Benihana Inc (BNHN), the leading operator of Japanese restaurants in the U.S, posted restaurant sales of $26.9 million for the four-week period ending June 19, 2011, up 6.0% from $25.3 million in the year-ago period.
The upside in sales was driven by improved comparable restaurant sales at both Benihana Teppanyaki and RA Sushi restaurants. For the four-week periods ending April 24 and May 22, restaurant sales were up 5.8% and 4.5%, respectively.
The company’s comparable restaurant sales grew 6.7% in the third four-week period of the first quarter of 2012, representing the seventeenth consecutive period of growth. In the first and second four-week periods of the first quarter of 2012, same-store sales spiked 5.8% and 4.8%, respectively.
The comparable restaurant sales jumped 9.3% at Benihana Teppanyaki restaurants on the back of higher guest count (up 7.2%) resulting from the Benihana Teppanyaki Renewal Program. During the first and second four-week periods of the first quarter of 2012, Benihana Teppanyaki restaurants comps escalated 9.0% and 7.9%, respectively. Moreover, same-store sales also improved 2.5% at RA Sushi restaurant, after experiencing a dip of 0.7% during the second four-week period.
Though, comps dropped 0.3% at Haru due to construction scaffolding outside some of the restaurants, the result marks an improvement as comps plunged 5.3% in the first four-week period ending April 24 and plummeted 2.3% in the second four week period ending May 22.
Store operating weeks during the period were 1.0% lower than the year-ago period.
The Miami-based company generates 99.5% of its revenues from restaurant sales (67% from Benihana Teppanyaki, 24% from RA Sushi and 9% from Haru) and the remaining 0.5% from franchise fees and royalties.
The company continues to report positive sales for the third four-week period of the first quarter of 2012 and is undertaking promotional and marketing initiatives to attract more customers.
We reiterate our long-term Underperform recommendation on the stock. Its prime competitors are McCormick & Schmick's Seafood Restaurants Inc. (MSSR) and P.F. Chang's China Bistro Inc. (PFCB).
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