Vicorp's 3rd-Q loss deepens to $5.7m; same-store sales down

Nation's Restaurant News,  Sept 10, 2007  

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DENVER -- Declining same-store sales and increased operating costs continue to dog Vicorp Restaurants Inc., parent to the Village Inn and Bakers Square brands, which reported a sharp widening of its third-quarter net loss compared with year-earlier results.

The privately held company's quarterly net loss for the three months ended July 12 was $5.7 million, versus a loss of $581,000 for the same period of fiscal 2006.

Revenues for the latest quarter were $106.9 million, a 1.4-percent increase from the $105.4 million reported a year earlier. A year-over-year increase in manufacturing sales to third parties and sales from 11 new restaurants helped boost corporate revenue, Vicorp said.

Third-quarter same-store sales for Village Inn and Bakers Square declined 2.3 percent and 4 percent, respectively.

The company said lower customer entree counts, increased competition and more cost-consciousness in the midscale family-dining segment hurt same-store sales.

Increased food and labor costs, which were up about 7 percent from a year ago, also contributed to the increased loss in the latest quarter.

Vicorp owns 316 restaurants and is franchisor of another 93 locations in 25 states.

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