Bravo Brio Restaurant Group, Inc. (BBRG) saw its loss widen to $73.32 million, or $4.96 a share for the quarter ended Dec. 25, 2016. In the previous year period, the company reported a loss of $2.70 million, or $0.18 a share. On the other hand, adjusted net income for the quarter stood at $1.77 million, or $0.12 a share compared with $3.58 million or $0.23 a share, a year ago. Revenue during the quarter dropped 5.25 percent to $101.65 million from $107.28 million in the previous year period. Gross margin for the quarter contracted 142 basis points over the previous year period to 65.73 percent. Operating margin for the quarter stood at negative 13.16 percent as compared to a negative 6.27 percent for the previous year period.
Operating loss for the quarter was $13.38 million, compared with an operating loss of $6.73 million in the previous year period.
Brian O'Malley, president and chief executive officer, said, “2016 was a transitional year at BBRG as we made meaningful investments to invigorate our menus, expand our gift card partnership with Costco, lay the foundation for convenient delivery options through third-party service providers, and enhance our banquet business by adding private dining spaces at select locations. While our overall results were disappointing and the casual dining environment remains challenging, we believe these initiatives are already strengthening our brands and will ultimately lead to improved financial performance. Our fourth quarter 2016 comparable banquet sales increased 5.4%, while ‘to-go’ sales, including delivery, grew 7.6%. Additionally, our guest satisfaction scores continue to rise and our strong Holiday gift card sales should help to improve traffic over the course of this year. We believe that these indicators are early signs of sustainable momentum and will position us for a better 2017.”
Working capital remains negative
Working capital of Bravo Brio Restaurant Group was negative $55.53 million on Dec. 25, 2016 compared with negative $48.14 million on Dec. 27, 2015. Current ratio was at 0.24 as on Dec. 25, 2016, down from 0.28 on Dec. 27, 2015.
Debt comes down marginally
Bravo Brio Restaurant Group has recorded a decline in total debt over the last one year. It stood at $41.50 million as on Dec. 25, 2016, down 4.16 percent or $1.80 million from $43.30 million on Dec. 27, 2015. Short-term debt stood at $4 million as on Dec. 25, 2016. Total debt was 24.89 percent of total assets as on Dec. 25, 2016, compared with 17.46 percent on Dec. 27, 2015.
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