Bravo Brio Restaurant Group (NASDAQ:BBRG)
Bravo Brio Restaurant Looks Strong Despite Fumbling Performance
Bravo Brio Restaurant Group (NASDAQ:BBRG) owns and operates two Italian restaurant brands, BRIO Tuscan Grille (BRIO) and BRAVO! Cucina Italiana (BRAVO!).
The company’s shares are in freefall since the massive decline in sales and earnings in Q2 earnings. Its comparable restaurant revenue fell 7.1% during the quarter, while traffic figures also declined 6% and the average guest check declined 1.4%. In addition, labor costs as a percentage of revenue surged massively by 230 bps to 37.8%.
Looking at the poor financial performance, the company slashed its full-year revenue outlook to $408M-$413M, from $424M-$432M previous.
Casual dining continues to be a difficult industry for investors. It’s rising wage costs, food inflation and simply too many restaurants. Financially, Bravo gross and operating margins continue to decline impacted by wages, food inflation and slightly lower average check size. Further, long-term debt was 184.906M for year ending 2009. Still significant but LTD reduced to the MRQ 122.189M.
Casual dining keeps on being a troublesome industry for financial specialists. It’s rising pay costs, food inflation and basically an excessive number of resturants. Monetarily, Bravo gross and working edges keep on declining affected by wages, nourishment expansion and somewhat bring down normal check measure. Further, long haul obligation was 184.906M for year finishing 2009. Still huge however LTD decreased to the MRQ 122.189M.
BRIO moved higher to $4.88 or 8% in the course of the most recent 2 days. It’s as yet bobbing close to its 52-week low cost of $4.50.
In the latest trading, BBRG is up another ~2%. In any case, even with the 10% 3-day move, is an enticing one. Ideally for current shareholders administration is purchasing back shares or paying down obligation with their positive working income. The lower stock cost might be the flag to administration; center capital designation on a more forceful share buyback.