Fogo de Chao, Inc (FOGO) has reported 41.28 percent plunge in profit for the quarter ended Oct. 02, 2016. The company has earned $4.58 million, or $0.16 a share in the quarter, compared with $7.80 million, or $0.27 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.65 million, or $0.16 a share compared with $5.28 million or $0.18 a share, a year ago. Revenue during the quarter grew 13.19 percent to $69.01 million from $60.97 million in the previous year period. Gross margin for the quarter contracted 213 basis points over the previous year period to 27.53 percent. Total expenses were 89.51 percent of quarterly revenues, up from 85.79 percent for the same period last year. That has resulted in a contraction of 373 basis points in operating margin to 10.49 percent.
Operating income for the quarter was $7.24 million, compared with $8.66 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.73 million compared with $13.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 330 basis points in the quarter to 18.45 percent from 21.75 percent in the last year period.
"We are very proud of recently being recognized as the best steakhouse in the US in a comprehensive survey conducted by one of Americas leading consumer magazines," said Larry Johnson, chief executive officer of Fogo de Chão, Inc. "Although the industry experienced a difficult quarter, our quarterly US comparable traffic was 230 and 220 basis points above our peer groups on the Knapp Track High End Steakhouses and Blackbox Upscale Fine Dining group. The current sales environment continues to be challenging, and we remain committed to the strategies we have in place to grow our top line and believe they are the keys to our long-term earnings growth and shareholder value."
Debt comes down
Fogo de Chao has recorded a decline in total debt over the last one year. It stood at $155 million as on Oct. 02, 2016, down 6.06 percent or $10 million from $165 million on Sep. 27, 2015. Interest coverage ratio deteriorated to 6.66 for the quarter from 7.57 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
