'More Work to be Done' at Ignite Restaurant Group as Sales Decline
Ignite Restaurant Group reported financial results for the second quarter ended June 27.
Highlights for the second quarter of 2016 were as follows:
Total revenues were $130.8 million, compared to $143.2 million in the second quarter of 2015; Comparable restaurant sales decreased 6.7 percent company-wide, comprised of a 6.8 percent decrease at Joe’s Crab Shack and a 6.3 percent decrease at Brick House Tavern + Tap; Loss from continuing operations was $10.4 million, or $0.40 per diluted share, compared to income from continuing operations of $1.7 million, or $0.07 per diluted share in the second quarter of 2015.
Robert S. Merritt, chief executive officer of Ignite Restaurant Group, says, “The sales environment for casual dining has remained extremely challenging and even more so in the Texas market. Significant discounting last year also negatively impacted our comparable restaurant sales in both brands during the current quarter. Our primary focus for both brands continues to be increasing sales and margins through improved operational and menu execution. We have made good progress, but there is still more work to be done.”
Review of Second Quarter 2016 Operating Results
Total revenues were $130.8 million in the second quarter of 2016, a decrease of 8.7 percent compared to $143.2 million in the second quarter of last year.
Revenues at Joe’s Crab Shack were $108.4 million during the second quarter of 2016 versus $122.4 million in the prior year second quarter. Comparable restaurant sales at Joe’s Crab Shack decreased 6.8 percent.
Revenues at Brick House Tavern + Tap were $22.4 million in the second quarter of 2016 compared to $20.8 million in the prior year second quarter. Comparable restaurant sales at Brick House Tavern + Tap decreased 6.3 percent.