Miami-based
Benihana Inc
(
BNHN
) continued its impressive run by posting restaurant sales of
$91.9 million for the fourth quarter of 2012, up 12.9% from
$81.4 million in the year-ago period. The upside in sales was
primarily driven by improved comparable restaurant sales at all
three restaurant concepts and one extra week of operation.
The company's comparable restaurant sales grew 4.8% in the
fourth quarter of 2012, thus marking the 27
th
consecutive four-week period and the ninth back-to-back quarters of
growth.
By restaurant concepts, the comparable restaurant sales jumped
6.0% at Benihana Teppanyaki restaurants (accounts 68% of total
restaurant sales) attributable to higher traffic (up 5.9%),
resulting from the Benihana Teppanyaki Renewal Program. Based
on solid performance, Benihana Teppanyaki brand also succeeded in
gaining the top position in Knapp-Track comparable sales survey for
calendar year 2011. Moreover, same-store sales during the quarter
jumped 2.1% at RA Sushi (accounts for 23% of total sales) and 2.4%
at Haru (accounts for 9% of total sales).
Including the additional week of operation, store operating
weeks during the quarter rose 6.4% from the year-ago quarter.
For fiscal 2012, Benihana restaurant sales leaped 7.5% to $350.4
million versus the year-ago level of $325.9 million. Company-wide
same-restaurant sales climbed 6.0%, benefiting from consistent
comps growth across all three restaurant concepts due to higher
traffic.
The leading operator of Japanese restaurants in the U.S.
witnessed same-restaurant sales growth of 7.6% at Benihana
Teppanyaki, 3.4% at RA Sushi and 0.9% at Haru for fiscal 2012.
Store operating weeks during 2012 were 0.7% higher than the
previous year, benefiting from an additional week of operation,
partially offset by some unit closures.
Despite the challenging economic conditions and cautious
consumer spending, the company continues to achieve comps growth
and we expect the same trend to continue going forward. Benihana
continues to focus on enhancing guest experience, operating
efficiency, promotions and marketing initiatives to attract more
customers.
The company is also looking for expansion opportunities by
opening new Benihana and RA Sushi restaurants going forward.
However, food costs pressure and stiff competition from peers like
Domino's Pizza Inc
. (
DPZ
) and
Red Robin Gourmet Burgers Inc.
(
RRGB
) remain concerns.
The Zacks Consensus Estimates have not budged in the last 30
days, implying that the analysts expect the company to report
in-line results. The Zacks Consensus Estimates for the fourth
quarter and 2012 are pegged at 15 cents and 34 cents per share,
respectively.
Benihana currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term Neutral recommendation on the stock.
BENIHANA INC (
BNHN
): Free Stock Analysis Report
DOMINOS PIZZA (
DPZ
): Free Stock Analysis Report
RED ROBIN GOURM (
RRGB
): Free Stock Analysis Report
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