Vicorp 2nd-Q net loss grows on comp-sales dips, higher costs

Nation's Restaurant News,  June 11, 2007  

• E-mail
• Print
• Link

DENVER -- Vicorp Restaurants Inc., parent to the Village Inn and Bakers Square brands that together total 409 corporate or franchised family-dining restaurants, reported a steep increase in its second-quarter net loss on declining same-store sales and increased operating costs.

The net loss for the second quarter of fiscal 2007 ended April 19 totaled $7.4 million, compared with a net loss of $1.3 million in the second quarter of fiscal 2006.

Revenues for the second quarter totaled $110 million, a 3.6-percent increase from $106.2 million a year earlier. Corporate revenues were aided by a 38.5-percent jump in manufacturing sales to third parties and the opening of 16 new restaurants. Same-store sales for Village Inn and Bakers Square decreased 1.2 percent and 5.6 percent for the quarter, respectively. The company said increased labor and food costs, which rose 5.1 percent and 7.6 percent on a year-to-year basis, respectively, contributed to the increased loss in the latest quarter.

COPYRIGHT 2007 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2008 Gale, Cengage Learning