Bob Evans Farms Inc. (BOBE, Financial) filed Quarterly Report for the period ended 2012-07-27.
Bob Evans Farms Inc has a market cap of $1.11 billion; its shares were traded at around $39.78 with a P/E ratio of 15.3 and P/S ratio of 0.7. The dividend yield of Bob Evans Farms Inc stocks is 2.5%. Bob Evans Farms Inc had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Bob Evans Farms Inc the business predictability rank of 2.5-star.
Consolidated net sales increased 1.1% to $409.7 million in the first quarter of fiscal 2013, compared to $405.4 million in the corresponding period last year. The net sales increase was comprised of increases of $4.2 million and $3.3 million in Bob Evans Restaurants and BEF Foods segments net sales, respectively, partially offset by a net sales decrease of $3.1 million in Mimis Café.
Mimis Café experienced a same-store sales decrease of 3.3% in the first quarter of fiscal 2013, which included no increase in average menu price, compared to a same-store sales decrease of 4.8% and a menu price increase of 4.2% in the corresponding period last year. We have seen improvement in Mimis same-store sales trends in the first quarter of fiscal 2013 compared to the corresponding period last year. We are in the design phase of modeling a remodel prototype, based off of Bob Evans Restaurants successful model, which will include an expanded bakery and a carryout section that will allow guests to select pre-made options for lunch or dinner. The remodel initiative at Mimis Café is limited to three locations in fiscal 2013. Mimis Café also incorporated Bob Evans Restaurants successful $9.99 3-course dinner value offering to their menu offerings. Mimis Café offers guests extra dining options, to the $9.99 3-course dinners for an additional $2 to further grow sales.
BEF Foods cost of sales ratio was 50.7% of net sales in the first quarter of 2013, compared to 54.4% in the corresponding period last year. The decrease in BEF Foods cost of sales ratio in the first quarter was due to reductions of $1.0 million and $0.6 million related to favorable sourcing and product mix shifts related to side dishes and other convenience products and a decline in sow costs, respectively. Sow costs averaged $54.19 per hundredweight, compared to $57.06 per hundredweight in the corresponding period last year. We believe drought conditions are having a positive impact on sow prices, as pork producers are beginning to liquidate the supply. We will monitor the sow supply and costs closely, as the volatility greatly impacts BEF Foods profitability. We estimate that a $1.00 change in average cost per hundredweight of sows affects BEF Foods annual cost of sales by approximately $1 million.
Capital expenditures consist of purchases of land for future restaurant sites, new and rebuilt restaurants, production plant improvements, purchases of new and replacement furniture and equipment, and ongoing remodeling programs. Capital expenditures were $19.9 million through three months of fiscal 2013, compared to $10.1 million in the corresponding period last year. The increase in our capital expenditures is mainly due to our Farm Fresh Refresh initiative at Bob Evans Restaurants, along with other property, plant and equipment additions. We expect to open up to 10 new Bob Evans Restaurants in fiscal 2013. Based on positive returns and sustained same-store sales of our Farm Fresh Refresh remodel initiative, we may expand our planned number of remodels beyond completing 150 remodels in fiscal 2013. In fiscal 2013, we do not plan to rebuild any Bob Evans Restaurants or Mimis or open any new Mimis. We are in the design phase of a remodel program, based on Bob Evans Restaurants highly successful model, which will include an expanded bakery and a carryout section that will allow guests to select premade options for lunch or dinner. We expect to remodel three Mimis Café in fiscal 2013. We expect capital spending to approximate between $150 and $160 million for all of fiscal 2013, compared to $88.4 million for fiscal 2012. The increase in expected capital expenditures in fiscal 2013 is due to our new restaurant openings, our Farm Fresh Refresh remodel initiative, capacity expansion for BEF Foods, development of a new corporate campus and the installation of a new Enterprise Resource Planning (ERP) system.
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Bob Evans Farms Inc has a market cap of $1.11 billion; its shares were traded at around $39.78 with a P/E ratio of 15.3 and P/S ratio of 0.7. The dividend yield of Bob Evans Farms Inc stocks is 2.5%. Bob Evans Farms Inc had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Bob Evans Farms Inc the business predictability rank of 2.5-star.
Highlight of Business Operations:
Operating income in the BEF Foods segment was $8.1 million, an increase of $2.4 million in the first quarter of fiscal 2013, compared to the corresponding period last year. The factors that had the greatest positive impact on BEF Foods segments profitability were increases in total pounds sold of 7.2%, compared to the corresponding period last year, and a decrease in sow costs of 5.0% and other purchased product costs, partially offset by $0.8 million in restructuring and severance costs included in S,G&A and other operating expenses. Sow costs represent a significant part of BEF Foods segments cost of sales, and the volatile nature of sow costs greatly impacts the profitability of the segment. Average sow costs decreased to $54.19 per hundredweight in the first quarter of fiscal 2013, or 5.0%, from $57.06 per hundredweight in the corresponding period last year.Consolidated net sales increased 1.1% to $409.7 million in the first quarter of fiscal 2013, compared to $405.4 million in the corresponding period last year. The net sales increase was comprised of increases of $4.2 million and $3.3 million in Bob Evans Restaurants and BEF Foods segments net sales, respectively, partially offset by a net sales decrease of $3.1 million in Mimis Café.
Mimis Café experienced a same-store sales decrease of 3.3% in the first quarter of fiscal 2013, which included no increase in average menu price, compared to a same-store sales decrease of 4.8% and a menu price increase of 4.2% in the corresponding period last year. We have seen improvement in Mimis same-store sales trends in the first quarter of fiscal 2013 compared to the corresponding period last year. We are in the design phase of modeling a remodel prototype, based off of Bob Evans Restaurants successful model, which will include an expanded bakery and a carryout section that will allow guests to select pre-made options for lunch or dinner. The remodel initiative at Mimis Café is limited to three locations in fiscal 2013. Mimis Café also incorporated Bob Evans Restaurants successful $9.99 3-course dinner value offering to their menu offerings. Mimis Café offers guests extra dining options, to the $9.99 3-course dinners for an additional $2 to further grow sales.
BEF Foods cost of sales ratio was 50.7% of net sales in the first quarter of 2013, compared to 54.4% in the corresponding period last year. The decrease in BEF Foods cost of sales ratio in the first quarter was due to reductions of $1.0 million and $0.6 million related to favorable sourcing and product mix shifts related to side dishes and other convenience products and a decline in sow costs, respectively. Sow costs averaged $54.19 per hundredweight, compared to $57.06 per hundredweight in the corresponding period last year. We believe drought conditions are having a positive impact on sow prices, as pork producers are beginning to liquidate the supply. We will monitor the sow supply and costs closely, as the volatility greatly impacts BEF Foods profitability. We estimate that a $1.00 change in average cost per hundredweight of sows affects BEF Foods annual cost of sales by approximately $1 million.
Capital expenditures consist of purchases of land for future restaurant sites, new and rebuilt restaurants, production plant improvements, purchases of new and replacement furniture and equipment, and ongoing remodeling programs. Capital expenditures were $19.9 million through three months of fiscal 2013, compared to $10.1 million in the corresponding period last year. The increase in our capital expenditures is mainly due to our Farm Fresh Refresh initiative at Bob Evans Restaurants, along with other property, plant and equipment additions. We expect to open up to 10 new Bob Evans Restaurants in fiscal 2013. Based on positive returns and sustained same-store sales of our Farm Fresh Refresh remodel initiative, we may expand our planned number of remodels beyond completing 150 remodels in fiscal 2013. In fiscal 2013, we do not plan to rebuild any Bob Evans Restaurants or Mimis or open any new Mimis. We are in the design phase of a remodel program, based on Bob Evans Restaurants highly successful model, which will include an expanded bakery and a carryout section that will allow guests to select premade options for lunch or dinner. We expect to remodel three Mimis Café in fiscal 2013. We expect capital spending to approximate between $150 and $160 million for all of fiscal 2013, compared to $88.4 million for fiscal 2012. The increase in expected capital expenditures in fiscal 2013 is due to our new restaurant openings, our Farm Fresh Refresh remodel initiative, capacity expansion for BEF Foods, development of a new corporate campus and the installation of a new Enterprise Resource Planning (ERP) system.
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