Bob Evans – BOBE – Positive sales results at Bob Evans Restaurants and BEF Foods
Bob Evans Farms, Inc (NASDAQ: BOBE) announced its results for the fiscal 2013 first quarter ended Friday, July 27, 2012.
- Bob Evans Restaurants’ net sales increase 1.7%; reports same-store sales of 1.0%. BEF Foods’ net sales increase 4.5%; volume up 7.2%
- Company announces 1Q 2013 earnings per diluted share of $0.53; non-GAAP EPS, adjusted for restructuring and other items, is $0.58 for the quarter. Incremental investments in Bob Evans Restaurants’ marketing, restaurant refreshes, and new store openings equate to $0.06 per diluted share
- Farm-Fresh Refresh program continues to drive sales and profits. Company exploring opportunities to increase number of restaurant refreshes in 2013
- Announces BEF Foods’ acquisition of the assets of Kettle Creations for approximately $50 million in cash. Enables partial vertical integration of high-growth side dish business
- Board of Directors approves 10 percent increase in quarterly dividend rate from 25 cents per share to 27.5 cents per share
- Company raises fiscal 2013 EPS guidance range to $2.67 to $2.73, supported by positive revenue trends and earnings accretion from acquisition
First-quarter fiscal 2013 commentary
Chairman and Chief Executive Officer Steve Davis said, “The actions we took during the first quarter of fiscal 2013 reflect confidence in our Company’s growth prospects. Despite volatility in commodity markets, and ongoing economic challenges for our customers, we continue to drive sales with our successful value platforms and invest in growth projects.
“We are encouraged by positive sales results at Bob Evans Restaurants and BEF Foods, with sequential moderation in Mimi’s Café’s sales trend during the first quarter. Our teams are committed to building on the sales momentum we have achieved. From ongoing investments in new restaurants and our Farm-Fresh Refresh remodeling initiative at Bob Evans Restaurants, to the acquisition of Kettle Creations to help drive margin gains and enable vertical integration of a portion of BEF Foods’ refrigerated side dish business, we are delivering on the key pillars of our operating strategy: transforming our businesses, investing in high return on invested capital opportunities, and driving shareholder value.
“We plan to continue employing our strong balance sheet to drive growth projects going forward,” Davis said. “Where prudent, we will investigate options for accelerating investments that are generating high returns, such as the Farm-Fresh Refresh remodeling program at Bob Evans Restaurants. Furthermore, our approach to capital allocation will remain balanced between growth investments that support our long-term annual adjusted EPS growth guidance of 7 to 10 percent, and return of capital to our shareholders through dividends and share repurchases.”
About Bob Evans Farms, Inc. – BOBE
Bob Evans Farms, Inc. (BOBE) owns and operates full-service restaurants under the Bob Evans and Mimi’s Café brand names.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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