McCormick & Schmick's Seafood Restaurant (MSSR, Financial) filed Quarterly Report for the period ended 2011-03-30.
Mccormick & Schmick's Seafood Restaurants Inc. has a market cap of $135.6 million; its shares were traded at around $9.15 with a P/E ratio of 26.1 and P/S ratio of 0.4.
Revenues decreased $0.9 million, or 1.0% to $84.0 million in the thirteen week period ended March 30, 2011 compared to $84.8 million in the comparable period of 2010. The decrease in revenues was primarily attributable to a 3.2% decrease in comparable restaurant sales. This decrease was partially offset by a beneficial shift in product mix. Revenues were also positively affected by the increase in store operating weeks as a result of the additional restaurants open compared to comparable period of 2010.
Food and beverage costs decreased $0.7 million or 2.7%, to $25.1 million in the thirteen week period ended March 30, 2011 compared to $25.8 million in the comparable period of 2010. The decrease in food and beverage costs was primarily due to lower restaurant sales. The decrease in food and beverage costs as a percentage of revenues was primarily due to proactive management of these costs despite the impact of higher commodity costs.
Labor costs increased $0.6 million or 2.3%, to $28.8 million in the thirteen week period ended March 30, 2011 compared to $28.2 million in the comparable period of 2010. The increase in labor costs was primarily related to two additional restaurants in operation and the investment in our service and hospitality initiative during the thirteen week period ending March 30, 2011 as compared to the comparable period of 2010.
Operating costs increased $0.3 million or 2.4%, to $12.9 million in the thirteen week period ended March 30, 2011 compared to $12.6 million in the comparable period of 2010. The increase in operating costs was primarily related to two additional restaurants in operation in the thirteen week period ending March 30, 2011 as compared to the comparable period of 2010. The increase in operating costs as a percentage of revenue was a result of deleveraging in the comparable sales base.
Depreciation and amortization decreased $0.3 million, or 7.2%, to $3.5 million in the thirteen week period ended March 30, 2011 compared to $3.8 million in the comparable period of 2010. The decrease in depreciation and amortization was primarily due to the reduction of expense attributable to assets impaired in fiscal 2010, partially offset by an increase in depreciation as a result of two new restaurants that were opened in the second quarter of 2010.
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Mccormick & Schmick's Seafood Restaurants Inc. has a market cap of $135.6 million; its shares were traded at around $9.15 with a P/E ratio of 26.1 and P/S ratio of 0.4.
Highlight of Business Operations:
The Company has identified eight restaurants to update in 2011, for an aggregate cost of approximately $6.5 million, some of which will be offset by landlord contributions, instead of the previously announced $10 to $15 million. The expected cost of this years remodel program is significantly lower than our original guidance for the following three reasons: (i) further refinement of the scope of the work to be done in each project combined with value engineering; (ii) two larger remodels we were considering for 2011 have been put on hold because of permitting and landlord approval delays; and (iii) better than expected landlord support, which has been committed in some locations, as they see the upside in making improvements to their facilities. With the refined cost structure of these remodels and modest sales increases, the Company expects it can deliver returns in excess of 20% in year one. In addition, the Company expects to have significantly less downtime during the 2011 remodels. The Company now estimates temporary closure of impacted locations for approximately 20 operating weeks during the scheduled remodels, which is roughly half the earlier estimate, as the Company has shifted the implementation process to minimize both closure times and adverse impacts on guests. The upgrade program is expected to impact earnings by ($0.04) in 2011.Revenues decreased $0.9 million, or 1.0% to $84.0 million in the thirteen week period ended March 30, 2011 compared to $84.8 million in the comparable period of 2010. The decrease in revenues was primarily attributable to a 3.2% decrease in comparable restaurant sales. This decrease was partially offset by a beneficial shift in product mix. Revenues were also positively affected by the increase in store operating weeks as a result of the additional restaurants open compared to comparable period of 2010.
Food and beverage costs decreased $0.7 million or 2.7%, to $25.1 million in the thirteen week period ended March 30, 2011 compared to $25.8 million in the comparable period of 2010. The decrease in food and beverage costs was primarily due to lower restaurant sales. The decrease in food and beverage costs as a percentage of revenues was primarily due to proactive management of these costs despite the impact of higher commodity costs.
Labor costs increased $0.6 million or 2.3%, to $28.8 million in the thirteen week period ended March 30, 2011 compared to $28.2 million in the comparable period of 2010. The increase in labor costs was primarily related to two additional restaurants in operation and the investment in our service and hospitality initiative during the thirteen week period ending March 30, 2011 as compared to the comparable period of 2010.
Operating costs increased $0.3 million or 2.4%, to $12.9 million in the thirteen week period ended March 30, 2011 compared to $12.6 million in the comparable period of 2010. The increase in operating costs was primarily related to two additional restaurants in operation in the thirteen week period ending March 30, 2011 as compared to the comparable period of 2010. The increase in operating costs as a percentage of revenue was a result of deleveraging in the comparable sales base.
Depreciation and amortization decreased $0.3 million, or 7.2%, to $3.5 million in the thirteen week period ended March 30, 2011 compared to $3.8 million in the comparable period of 2010. The decrease in depreciation and amortization was primarily due to the reduction of expense attributable to assets impaired in fiscal 2010, partially offset by an increase in depreciation as a result of two new restaurants that were opened in the second quarter of 2010.
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