Earnings rise 24% for Einstein Noah

by Jeff Gelski
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LAKEWOOD, COLO. — Net income for the Einstein Noah Restaurant Group, Inc. jumped 24% to $13.2 million, equal to 79c per share on the common stock, in the 53-week fiscal year ended Jan. 3, which compared to $10.6 million, or 68c per share, in the 52-week fiscal year ended Dec. 28, 2010. The impact of an extra week was about 3c per share.

Total revenues of $423.6 million were up 3% from $411.7 million in the previous fiscal year. Sales included $7.3 million for the extra week in fiscal year 2011.

Einstein Noah had net income of $6.1 million, or 36c per share, for the 14-week fourth quarter ended Jan. 3, which was up 83% from $3.4 million, or 22c per share, in the previous year’s 13-week fourth quarter. Total fourth-quarter revenues of $115.1 were up 9% from $106.1 million in the previous year’s fourth quarter.

Lakewood-based Einstein Noah Restaurant Group opened 55 restaurants and closed 15 other ones in the 2011 fiscal year. The company had 773 system-wide Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel branded restaurants in operation on Jan. 3, 2012.

“We delivered strong results in the fourth quarter characterized by revenue growth and positive comparable stores sales along with substantial improvements in our adjusted EBITDA and net income,” said Jeff O’Neill, president and chief executive officer, when results were given March 1. “Although higher commodity costs pressured store-level margins, we effectively controlled other expenses and completed phase one of our cost efficiency program, delivering $2.7 million in savings.”

Mr. O’Neill said in fiscal year 2012 the company plans to introduce a smart choices menu of bagel thin sandwiches, salads and soups. Fruit smoothies and new blended coffees and teas should augment the specialty beverage platform. This year Einstein Noah may have 60 to 80 system-wide openings, including 8 to 12 company-owned restaurants, 12 to 14 franchise restaurants and 40 to 54 license restaurants. Capital expenditures in 2012 should be in the range of $24 million to $26 million.

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