Einstein Noah: announces Q3/2009 results

Lakewood / CO. (enr) Einstein Noah Restaurant Group, a leader in the quick-casual segment of the restaurant industry, reported financial results for the third quarter ended September 29, 2009. Selected highlights for Q3/2009 compared to the third quarter 2008:

• Total revenues declined modestly to 100,0 million USD versus 100,9 million USD in the third quarter of 2008.
• System-wide comparable store sales decreased (2,7 percent) while transactions decreased (2,1 percent) continuing to reflect substantial improvement from the beginning of the year.
• Corporate margins in the third quarter were 18,6 percent compared to the prior year´s 19,0 percent despite incremental 0,6 million USD in marketing spending as well as increased catering support.
• Marketing investment continued to improve Company store transactions with breakfast transactions approximately flat compared to the prior year period.
• GAAP net income and diluted EPS were 60,9 million USD and 3,65 USD respectively, versus 4,5 million USD and 0,28 USD in the third quarter of 2008. The 2009 period included a deferred tax benefit of 56,8 million USD and approximately 750’000 USD of accrued additional redemption on the Series Z Preferred Stock. The 2008 period included a 1,9 million USD charge for California wage and hour settlements.

Jeff O´Neill, Chief Executive Officer and President of Einstein Noah: «System-wide comparable store sales and transaction performance reflect substantial improvement from the beginning of the year when our current marketing and merchandising initiatives were implemented. These efforts are ongoing, and are intended to serve as a foundation for sustainable long-term growth as we have previously stated. Despite the challenges of the current economic environment, we remain confident that our progress to build awareness, trial, and frequency will continue to gain momentum and position Einstein Noah for improved performance as we move toward 2010. In addition to our pipeline of new products, including healthier options, we are also at the forefront of menu innovation. In combination with other corporate initiatives, we expect our efforts will build brand equity, facilitate strategic unit expansion, and create long term value for shareholders».

Info: See also «Einstein Noah Restaurant Group Reports Third Quarter 2009 Financial Results» (complete press release).