Bob Evans touts improved income in Q3 results
Bob Evans Farms Inc. announced its results for the 2012 third fiscal quarter ended Friday, Jan. 27, 2012. The company reported earnings of 69 cents per diluted share, compared with 51 cents per diluted share last year, a 35% increase. Operating income was up 19%, and net income up 31%, on improving sales trends, and ongoing success with cost initiatives.
Chairman and CEO Steve Davis said the company's third-quarter operating results reflect continued momentum across all three of its brands. Bob Evans Restaurants reported positive same-store sales for the quarter; and Mimi's same-store sale results, while still negative, improved sequentially. The foods segment delivered a modest sales and volume increase, along with market share increases in both its sausage and side dish businesses.
Davis noted, "Improving sales trends, as well as continued success with innovative cost initiatives across the enterprise, are driving operating profit favorability. Despite an approximately $4 million cost of sales increase in the foods segment driven by increased sow costs and other commodities, our diversified-integrated growth model offset the impact, and delivered a solid quarter."
Consolidated net sales were $428.3 million in the third quarter of fiscal 2012, approximately flat compared to the third quarter of fiscal 2011. Positive same-store sales at Bob Evans Restaurants and a slight increase in foods segment sales nearly offset the adverse impact of negative same-store sales at Mimi's. This was achieved with five fewer Bob Evans Restaurants locations compared to the same period last year.
The foods segment reported third quarter fiscal 2012 operating income of $7.1 million, or 7.9 percent of net sales, compared with $10.7 million, or 11.8 percent of net sales, last year. The foods segment's net sales were $91.0 million, up 0.1 percent, compared to $90.9 million in the third quarter of fiscal 2011. Total pounds sold increased 0.9 percent compared to the third quarter of fiscal 2011. Both the sausage and side dish categories gained market share during the period, and three new frozen burrito products targeted at consumers seeking healthy and innovative breakfast alternatives were introduced in January.
Source: Bob Evans Farms Inc.