Winter weather to negatively affect Bob Evans’ Q3 results
Bob Evans Farms Inc. said that a number of factors have affected its performance in the fiscal third quarter ending January 24, 2014, and it is updating its fiscal year 2014 forecast.
Chairman and CEO Steve Davis said, "The unusually severe winter weather, particularly in the northern Midwest, the region with the heaviest concentration of Bob Evans Restaurants, has had a significant negative impact on Bob Evans Restaurants' performance throughout the third quarter to date. Based on fiscal third quarter results through the first half of January, we estimate a negative operating profit impact of $3.0 million to $3.5 million for lost sales, and additional weather-related operating expenses of $1.0 million to $1.5 million. Severe weather continues to negatively impact restaurant guest traffic and sales, and increase operating expenses. With well-below average temperatures and additional snow in the forecast, it is likely we will experience an additional weather impact during the remainder of the quarter. Although we are seeing improvement in same-store sales in states not impacted by severe weather such as Florida, overall same-store sales trends are lower than our flat to 1 percent guidance.