Rare 4th-Q profit dips 5.2%, 2006 net plunges 23.7%

Nation's Restaurant News,  Feb 26, 2007  

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Atlanta -- Rare Hospitality International Inc. posted a 5.2-percent drop in fourth-quarter net income to $12.2 million, or 36 cents per share, on revenues that rose 17 percent to $259.9 million.

Rare is the operator or franchisor of 275 LongHorn Steakhouse restaurants, 26 Capital Grille restaurants and 31 Bugaboo Creek Steak House units. It plans to sell Bugaboo and has classified the chain as discontinued operations. Per-share earnings from continuing operations for the fourth quarter ended Dec. 31 totaled 46 cents, up from 42 cents in the year-earlier quarter, the company reported.

Fourth-quarter same-store sales increased 1.5 percent at LongHorn and jumped 8.4 percent at Capital Grille.

For the full year, Rare reported a 23.7-percent plunge in net income to $39.4 million, or $1.14 per share. The company's annual loss from discontinued operations was $10.6 million. Revenues rose 17.6 percent to $986.9 million.

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