Bravo Brio Restaurant Group (BBRG) Misses Q2 EPS by 2c; Guides Lower

Bravo Brio Restaurant Group (NASDAQ: BBRG) reported Q2 EPS of $0.20, $0.02 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $105.6 million versus the consensus estimate of $107.9 million.

Bravo Brio Restaurant Group sees FY2014 EPS of $0.71-$0.75, versus prior guidance of $0.78-$0.84 and the consensus of $0.79. Bravo Brio Restaurant Group sees FY2014 revenue of $405-410 million, versus prior guidance of $420-430 million and the consensus of $422.8 million.

Saed Mohseni, Chief Executive Officer and President, said, "During the quarter, softness in retail spending and intense competitive discounting resulted in our restaurants serving fewer aspirational guests. However, our core, higher-end guests continued to visit us in the same manner as in the past. We have strategies in place to continue attracting higher-end guests and these include implementing an on-line reservation system, enhancing our loyalty program, expanding our popular Light menu offerings, and sourcing an increasing portion of our products from suppliers using sustainable agricultural methods. Everyday value will continue to play a key role in our menu development and marketing strategy as will utilizing the creativity and culinary expertise of our unit level chefs. We are determined to be recognized as the leader in upscale affordable Italian dining and we believe that these steps will help us achieve that goal."

Mohseni continued, "Our cash flow generation capabilities and strong balance sheet are enabling us to continue common stock repurchases under our current authorization. During the second quarter, we bought back approximately $2.4 million of common stock and cumulatively have repurchased $15.8 million since the inception of the buyback program."

Mohseni concluded, "Our development plan remains on track with all our new restaurants being financed entirely though internally-generated capital. During the second quarter, we opened a BRAVO! in Charlotte, North Carolina, and earlier this month, we opened a BRIO in Irvine, California. The remaining three BRAVO!s and one BRIO will open in the fourth quarter and are located primarily in Florida. Although we believe that we are underpenetrated relative to our full potential and greater development opportunities are currently available, we will not accelerate development until improvements in our core restaurant base are sustained."

For earnings history and earnings-related data on Bravo Brio Restaurant Group (BBRG) click here.

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