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Form 8-K BOB EVANS FARMS INC For: Dec 05

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December 5, 2016 4:28 PM EST


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): December 5, 2016 (December 5, 2016)
Bob Evans Farms, Inc.
(Exact name of registrant as specified in its charter)

Delaware
0-1667
31-4421866
(State or other jurisdiction of
incorporation or organization)
(Commission File No.)
(I.R.S. Employer
Identification No.)
8111 Smith’s Mill Road, New Albany, Ohio 43054
(Address of principal executive offices Zip Code)
(614) 491-2225
(Registrant’s telephone number, including area code)
Not applicable
(Former name, former address and formal fiscal year, if changed since last report)
_______________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
¨    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2b)
¨    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c)






Item 2.02.    Results of Operations and Financial Condition.

On December 5, 2016, Bob Evans Farms, Inc., a Delaware corporation (the “Company”) issued a news release announcing financial results for the second quarter of fiscal year 2017 ended October 28, 2016. A copy of the news release and a fact sheet with additional financial information is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Within the news release the Company sets forth the reasons it believes that the presentation of the non-GAAP financial measures contained in the press release provide useful information to investors regarding the Company’s financial condition and results of operations. To the extent material, the exhibit also discloses the additional purposes, if any, for which the Company’s management uses these non-GAAP financial measures. A reconciliation of these non-GAAP financial measures with the most directly comparable GAAP financial measures is included in news release and fact sheet.

The information in this Form 8-K, including the information contained in Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits.

(a) Financial Statements of Business Acquired - Not Applicable
(b) Pro Forma Financial Information - Not applicable
(c) Shell Company Transactions - Not Applicable
(d) Exhibits:

The following exhibits are included with this Current Report on Form 8‑K:

99.1
News release issued by Bob Evans Farms, Inc. on December 5, 2016 announcing the financial results for the second quarter of fiscal year 2017 ended October 28, 2016
Filed herewith












SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
BOB EVANS FARMS, INC.
 
 
 
 
Date: December 5, 2016
 
By:
/s/ Mark E. Hood
 
 
 
Mark E. Hood, Chief Financial Officer and Chief Administrative Officer



beflogoa03.jpg
BOB EVANS REPORTS FISCAL 2017 SECOND-QUARTER RESULTS AND UPDATES FISCAL 2017 GUIDANCE
    
▪
Q2 2017 net sales total $316.0 million; GAAP net income of $0.01 per diluted share, non-GAAP net income(1) of $0.56 per diluted share. A $16.0 million pretax impairment charge ($0.55 per diluted share) related to the note receivable from the 2013 sale of Mimi’s Café is the primary difference between GAAP and non-GAAP results

▪
BEF Foods reports Q2 side-dish and sausage pounds sold growth of 13.7 percent and 7.6 percent, respectively. Household penetration increases 24 percent during the past year

▪
Bob Evans Restaurants’ sales trend continued to improve as Q2 same-store sales declined 1.8 percent with a new menu design, product upgrades, and improved hospitality continuing to enhance the guest experience

▪
Company lowers fiscal year 2017 GAAP diluted EPS guidance range to $1.54 to $1.72 to reflect the note receivable impairment. Raises non-GAAP range to $2.15 to $2.30 to reflect improved performance and updated projections

▪
Quarterly dividend of $0.34 per share payable on December 23, 2016, to stockholders of record at the close of business on December 12, 2016. Current share repurchase authorization extended through December 31, 2017

NEW ALBANY, Ohio - December 5, 2016 - Bob Evans Farms, Inc. (NASDAQ: BOBE) today announced its financial results for the fiscal 2017 second quarter ended Friday, October 28, 2016. On a GAAP basis, the Company reported net income of $0.2 million, or $0.01 per diluted share, compared with net income of $6.4 million, or $0.29 per diluted share, in the corresponding period last year. After adjusting for the note impairment, non-GAAP net income was $11.2 million, or $0.56 per diluted share, compared with net income of $9.2 million, or $0.41 per diluted share, in the corresponding period last year. For an explanation of certain non-GAAP financial measures used in this release, please refer to the discussion in “Non-GAAP Financial Measures” below.

Second-quarter fiscal 2017 commentary
President and Chief Executive Officer Saed Mohseni said, “BEF Foods delivered another excellent quarter with 13.7 percent volume growth of refrigerated side-dish products and 7.6 percent growth of our sausage business. Both product lines achieved market share gains during the quarter. Recent expansion of our side-dish production capacity and continued strategic use of our co-packer network, position us well for meeting peak holiday production demands during the third fiscal quarter. We are evaluating additional growth opportunities, including investments in our plant network as well as acquisitions, to further improve manufacturing efficiency and production capacities as we aggressively target new product authorizations at our existing

1

retailers, and new retail account authorizations, particularly on the West Coast and with national big-box chains.

“Bob Evans Restaurants’ performance improved during the second quarter as same-store sales trends improved further and positive guest feedback trends reflected continued improvements to the guest experience. We are encouraged that six states in the chain achieved positive same-store sales during the second quarter, compared to one state in the prior quarter. Furthermore, the number of individual restaurants generating positive quarterly same-store sales increased 65 percent from the first quarter. Our new menu, launched September 1, continues to perform as expected. Although our value offerings have received more prominence in the new menu design, our average check has increased slightly as guests have taken advantage of the flexibility of the new menu to build a dining experience that best meets their appetite and budget.”

Mohseni continued, “The Board continues to evaluate all options to create shareholder value and is working with J.P. Morgan to review and evaluate potential opportunities for value creation. There is no formal timeline for the completion of the review and there can be no certainty that the review will result in a particular outcome.”

Second-quarter fiscal 2017 Bob Evans Restaurants segment summary
Bob Evans Restaurants’ net sales were $219.8 million, a decline of $10.9 million, or 4.7 percent, compared to net sales of $230.7 million in the corresponding period last year. Same-store sales declined 1.8 percent with the balance of the net sales decline due to net restaurant closures during the past year. No restaurants were closed and no new restaurants opened during the quarter. The Company operated 522 restaurants at the end of the quarter.

Same-Store Sales (SSS) Restaurants
August
September
October
Q2  FY ’17
521
-2.0%
-2.0%
-1.4%
-1.8%

Bob Evans Restaurants’ GAAP operating income was $13.5 million, compared to GAAP operating income of $13.3 million last year. Bob Evans Restaurants’ non-GAAP operating income was $13.5 million, compared to $13.6 million last year, a decline of $0.1 million. The decline in non-GAAP operating income was due to lower sales and increased hourly wage rates along with investment in labor hours to support efforts to improve guest hospitality; partially offset by lower commodity costs, reduced discounting, and lower healthcare costs. Additionally, the April 2016 sale-leaseback transaction of 143 restaurant properties reduced operating income by approximately $0.4 million due to a $2.7 million increase in rent, partially offset by a $2.3 million decline in depreciation compared to the prior year period.

Second-quarter fiscal 2017 BEF Foods segment summary
BEF Foods’ net sales were $96.2 million, an increase of $1.9 million, or 2.0 percent, compared to $94.3 million in the corresponding period last year. Pounds sold increased 6.9 percent while average net selling price per pound declined 4.6 percent compared to the corresponding period last year. The decline in average net selling price reflects an increased sales mix of lower-priced, although higher-margin, side-dish products relative to sausage, as well as reduced net sausage pricing through increased trade spending. From a net sales perspective, a 13.7 percent increase in side-dish pounds sold and a 7.6 percent increase in sausage pounds sold were partially offset by a $4.1 million increase in trade spending (reduces net sales), a 17.4

2

percent decline in frozen product pounds sold and a 5.8 percent decline in food service pounds sold compared to the corresponding period last year.

BEF Foods’ GAAP operating income was $18.7 million, compared to $14.0 million last year. Prior year GAAP operating income included a $3.6 million charge to reflect the loss on the sale-leaseback of the Sulphur Springs manufacturing facility. BEF Foods non-GAAP operating income was $18.7 million, compared to $17.6 million in the corresponding period last year, an improvement of $1.1 million. The improvement was due primarily to increased volume, $2.5 million of lower sow costs, favorable sales mix, and lower SG&A costs; partially offset by $4.1 million of increased trade spending, increased freight expenses, and an increase in advertising expenses. Additionally, the October 2015 sale-leaseback transaction of two industrial properties reduced operating income by approximately $0.6 million due to a $1.0 million increase in rent, partially offset by a $0.4 million decline in depreciation compared to the prior year period.

Second-quarter fiscal 2017 Corporate and Other summary
Corporate and Other GAAP operating costs were $30.7 million, compared to $15.9 million last year.  Corporate and Other GAAP operating costs include the $16.5 million combined impact of the following items excluded from non-GAAP results: $16.0 million related to the impairment of the note receivable from the 2013 sale of Mimi’s Café; and $0.5 million related to costs associated with strategic initiatives. Corporate and Other non-GAAP operating costs were $14.2 million, compared to $15.9 million last year, a decline of $1.7 million. The decline was due primarily to lower legal and professional fees, partially offset by increased incentive compensation costs and depreciation and amortization resulting from technology-related capital expenditures.

Second-quarter fiscal 2017 net interest expense - GAAP net interest expense was $1.7 million in the second quarter, a decline of $1.2 million, compared to $2.9 million in the corresponding period last year. Second-quarter non-GAAP net interest expense excludes the impact of $1.1 million of interest accretion related to the impairment of the note receivable from the 2013 sale of Mimi’s Café. The borrowing rate on the Company’s outstanding debt was 2.28 percent at the end of the second quarter, compared to 1.95 percent for the prior year period.

Second-quarter fiscal 2017 taxes - The Company’s provision for income taxes is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. The Company recognized a GAAP tax benefit of 179.9 percent for the quarter, compared to tax expense of 24.8 percent for the prior year period. The change in the tax rate was driven primarily by the impact of lower pretax income due to the impairment of a note receivable booked during the quarter. Year-to-date, the Company recognized GAAP tax expense of 18.7 percent, compared to 24.6 percent for the prior year. For non-GAAP items, the tax rate was 25.8 percent for the quarter, reflecting the Company’s annual non-GAAP estimated tax rate adjusted for the impact of second-quarter discrete items. Year-to-date, the Company’s non-GAAP estimated tax rate adjusted for the impact of discrete items was 24.4 percent.

Second-quarter fiscal 2017 balance sheet highlights - The Company’s cash balance and outstanding debt at the end of the quarter were $4.9 million and $361.8 million, respectively, compared to $5.4 million and $471.4 million at the end of the corresponding period last year. The Company was in compliance with its debt covenants at the end of the quarter. The decrease in borrowings was primarily the result of the use of proceeds from recent real estate monetization transactions and operating cash flow to reduce debt, partially offset by share

3

repurchases, capital expenditures, and dividend payments. On a pro-forma basis, assuming the 2016 sale-leaseback transactions occurred at the beginning of fiscal 2016, the Company’s quarter-end leverage ratio was 3.00.

Fiscal year 2017 outlook
Chief Administrative and Chief Financial Officer Mark Hood said, "We have updated our GAAP and non-GAAP fiscal 2017 EPS guidance ranges. We have reduced our GAAP diluted EPS guidance range to $1.54 to $1.72, from $2.00 to $2.17 previously, to reflect the impairment of the note receivable from the 2013 sale of Mimi’s Café, partially offset by improved operating performance in the first half of fiscal 2017. We have raised our non-GAAP diluted EPS guidance range to $2.15 to $2.30, from $2.05 to $2.20 previously.

“While we continue to expect full-year negative low-single digit to flat same-store sales at Bob Evans Restaurants, we have adjusted our restaurant commodity pricing outlook to negative low-single digit to flat for the year, from approximately flat previously. As for BEF Foods, we have lowered our sow cost forecast to $42 to $45 per hundredweight, from $50 to $53 previously, to reflect expectations for the remainder of the fiscal year. As a consequence of lower projected sow costs, we expect lower sausage pricing (resulting from increases in trade spending to reflect an increased competitive pricing environment from lower sow costs) and have lowered our BEF Foods sales outlook to $390 to $410 million, from $400 to $420 million previously. At the corporate level, we have added GAAP tax rate guidance of 18% to 19% for fiscal 2017 as a result of the impact of the Mimi’s Café note impairment on taxable income, and increased our non-GAAP tax rate guidance 50 basis points to 24% to 25% to reflect the impact of higher taxable income on our tax preference items. We are also maintaining our focus on lowering corporate and other costs required to support our businesses.”

Guidance Metric
FY ‘17
Consolidated net sales
$1.24 to $1.29 billion
Bob Evans Restaurants same-store sales
negative low-single digit to flat
Bob Evans Restaurants commodity pricing
negative low-single digit to flat
BEF Foods net sales
$390 to $410 million
BEF Foods sow cost (per hundredweight)
$42-$45
Capital expenditures
$75 to $80 million
Depreciation and amortization
$71 to $75 million
Net interest expense
$10 to $12 million
GAAP Tax rate
18% to 19%
Non-GAAP Tax rate
24% to 25%
Diluted weighted-average share count
approximately 20 million shares
Remaining share repurchase authorization
$78.5 million
GAAP diluted earnings per share
$1.54 to $1.72
Non-GAAP diluted earnings per share
$2.15 to $2.30

This outlook is subject to a number of factors beyond the Company’s control, including the risk factors discussed in the Company’s fiscal 2016 Annual Report on Form 10‑K and its other subsequent filings with the Securities and Exchange Commission.

Investor Conference Call
The Company will host a conference call to discuss its second-quarter fiscal 2017 results at 8:30 a.m. (ET) on Tuesday, December 6, 2016. The dial-in number for the conference call is (855) 468-0551, access code 7719466. A replay will be available at (800) 585-8367, access code

4

7719466.

A simultaneous webcast will be available at http://investors.bobevans.com/events.cfm. The archived webcast will also be available on the Web site.

(1)Non-GAAP Financial Measures
The Company uses non-GAAP financial measures to monitor and evaluate the ongoing performance of the Company. The Company believes the additional measures are useful to investors for financial analysis. Excluding these items reflects operating results that are more indicative of the Company’s ongoing operating performance and improve comparability to prior periods. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Reconciliations to the applicable GAAP financial measures are included in the attached schedules.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events. We discuss these factors and events, along with certain other risks, uncertainties and assumptions, under the heading “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 29, 2016, and in our other filings with the Securities and Exchange Commission. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. Predicting or identifying all such risk factors is impossible. Consequently, investors should not consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date of the statement to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to us or any person acting on behalf of the Company are qualified by the cautionary statements in this section.

About Bob Evans Farms, Inc.
Bob Evans Farms, Inc. owns and operates full-service restaurants under the Bob Evans Restaurants brand name. At the end of the second fiscal quarter (October 28, 2016), Bob Evans Restaurants owned and operated 522 family restaurants in 18 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States. Bob Evans Farms, Inc., through its BEF Foods segment, is also a leading producer and distributor of refrigerated side dishes, pork sausage, and a variety of refrigerated and frozen convenience food items under the Bob Evans and Owens brand names. For more information about Bob Evans Farms, Inc., visit www.bobevans.com.

Contact:     
Scott C. Taggart
Vice President, Investor Relations
(614) 492-4954
BOBE-E
Source: Bob Evans Farms, Inc.


5


Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Second quarter Fiscal 2017, Three months ended October 28, 2016 compared to the corresponding period a year ago:

(in thousands, except per share amounts)
 
 
 
 
Basic EPS
 
Diluted EPS
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
October 28, 2016
 
October 23, 2015
 
October 28, 2016
 
October 23, 2015
 
October 28, 2016
 
October 23, 2015
Operating Income (Loss) as Reported
 
 
 
 
 
 
 
 
 
 
 
Bob Evans Restaurants
$
13,461

 
$
13,323

 
 
 
 
 
 
 
 
BEF Foods
18,679

 
13,997

 
 
 
 
 
 
 
 
Corporate and Other
(30,672
)
 
(15,886
)
 
 
 
 
 
 
 
 
Operating Income
1,468

 
11,434

 
 
 
 
 
 
 
 
Net interest expense
1,741

 
2,883

 
 
 
 
 
 
 
 
Income Before Income Taxes
(273
)
 
8,551

 
 
 
 
 
 
 
 
Provision (benefit) for income taxes
(491
)
 
2,120

 
 
 
 
 
 
 
 
Net Income as reported
218

 
6,431

 
$
0.01

 
$
0.29

 
$
0.01

 
$
0.29

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
 
 
 
 
Bob Evans Restaurants
 
 
 
 
 
 
 
 
 
 
 
Severance/Restructuring
—

 
318

 
 
 
 
 
 
 
 
BEF Foods
 
 
 
 
 
 
 
 
 
 
 
Loss on Sale of Assets
—

 
3,606

 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Impairments
16,000

 
—

 
 
 
 
 
 
 
 
Activism, Strategic Initiatives and Other
479

 
—

 
 
 
 
 
 
 
 
 
16,479

 
—

 
 
 
 
 
 
 
 
Total adjustments
 
 
 
 
 
 
 
 
 
 
 
Impairments
16,000

 
—

 
 
 
 
 
 
 
 
Severance/Restructuring
—

 
318

 
 
 
 
 
 
 
 
Loss on Sale of Assets
—

 
3,606

 
 
 
 
 
 
 
 
Activism, Strategic Initiatives and Other
479

 
—

 
 
 
 
 
 
 
 
 
16,479

 
3,924

 
 
 
 
 
 
 
 
Non-GAAP operating income (loss)
 
 
 
 
 
 
 
 
 
 
 
Bob Evans Restaurants
13,461

 
13,641

 
 
 
 
 
 
 
 
BEF Foods
18,679

 
17,603

 
 
 
 
 
 
 
 
Corporate and Other
(14,193
)
 
(15,886
)
 
 
 
 
 
 
 
 
Total non-GAAP operating income
17,947

 
15,358

 
 
 
 
 
 
 
 
Adjustments to net interest expense
1,133

 
(480
)
 
 
 
 
 
 
 
 
Non-GAAP net interest expense
2,874

 
2,403

 
 
 
 
 
 
 
 
Non-GAAP Income Before Taxes
15,073

 
12,955

 
 
 
 
 
 
 
 
Adjustments to income tax provision (benefit)
4,380

 
1,636

 
 
 
 
 
 
 
 
Non-GAAP Provision for Income Taxes
3,889

 
3,756

 
 
 
 
 
 
 
 
Non-GAAP Net Income
$
11,184

 
$
9,199

 
$
0.56

 
$
0.42

 
$
0.56

 
$
0.41

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
19,825

 
22,115

 
19,964

 
22,233














6


Second quarter Fiscal 2017, Three months ended October 28, 2016 compared to the corresponding period a year ago:
(in thousands)
 
Three Months Ended
 
 
Consolidated Results
 
Bob Evans Restaurants
 
 
October 28, 2016
 
% of Sales
 
October 23, 2015
 
% of Sales
 
October 28, 2016
 
% of Sales
 
October 23, 2015
 
% of Sales
Operating income as reported
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
315,963

 
 
 
$
325,021

 
 
 
$
219,805

 

 
$
230,741

 

Cost of sales
 
96,232

 
30.5
%
 
102,709

 
31.6
%
 
56,007

 
25.5
%
 
61,725

 
26.8
%
Operating wage and fringe benefit expenses
 
100,150

 
31.7
%
 
104,403

 
32.1
%
 
89,352

 
40.7
%
 
93,460

 
40.5
%
Other operating expenses
 
58,457

 
18.5
%
 
56,181

 
17.3
%
 
43,018

 
19.6
%
 
42,984

 
18.6
%
Selling, general and administrative expenses
 
25,487

 
8.0
%
 
29,902

 
9.2
%
 
6,965

 
3.1
%
 
5,433

 
2.3
%
Depreciation and amortization expense
 
17,646

 
5.6
%
 
20,107

 
6.2
%
 
10,479

 
4.8
%
 
13,531

 
5.9
%
Impairments
 
16,523

 
5.2
%
 
285

 
0.1
%
 
523

 
0.2
%
 
285

 
0.1
%
Total as reported
 
1,468

 
0.5
%
 
11,434

 
3.5
%
 
13,461

 
6.1
%
 
13,323

 
5.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Cost of sales
 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Operating wage and fringe benefit expenses
 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Other operating expenses
 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Selling, general and administrative expenses
 
(479
)
 
 
 
(3,924
)
 
 
 
—

 
 
 
(318
)
 
 
Depreciation and amortization expense
 
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Impairments
 
(16,000
)
 
 
 
—

 
 
 
—

 
 
 
—

 
 
Total Adjustments
 
16,479

 
 
 
3,924

 
 
 
—

 
 
 
318

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
315,963

 
 
 
325,021

 
 
 
219,805

 
 
 
230,741

 
 
Cost of sales
 
96,232

 
30.5
%
 
102,709

 
31.6
%
 
56,007

 
25.5
%
 
61,725

 
26.8
%
Operating wage and fringe benefit expenses
 
100,150

 
31.7
%
 
104,403

 
32.1
%
 
89,352

 
40.7
%
 
93,460

 
40.5
%
Other operating expenses
 
58,457

 
18.5
%
 
56,181

 
17.3
%
 
43,018

 
19.6
%
 
42,984

 
18.6
%
Selling, general and administrative expenses
 
25,008

 
7.9
%
 
25,978

 
8.0
%
 
6,965

 
3.1
%
 
5,115

 
2.2
%
Depreciation and amortization expense
 
17,646

 
5.5
%
 
20,107

 
6.2
%
 
10,479

 
4.8
%
 
13,531

 
5.9
%
Impairments
 
523

 
0.2
%
 
285

 
0.1
%
 
523

 
0.2
%
 
285

 
0.1
%
Total non-GAAP operating income
 
$
17,947

 
5.7
%
 
$
15,358

 
4.7
%
 
$
13,461

 
6.1
%
 
$
13,641

 
5.9
%


7


(in thousands)
 
Three Months Ended
 
 
BEF Foods
 
Corporate and Other
 
 
October 28, 2016
 
% of Sales
 
October 23, 2015
 
% of Sales
 
October 28, 2016
 
October 23, 2015
Operating income (loss) as reported
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
96,158

 
 
 
$
94,280

 
 
 
$
—

 
$
—

Cost of sales
 
40,225

 
41.8
%
 
40,984

 
43.5
%
 
—

 
—

Operating wage and fringe benefit expenses
 
10,798

 
11.2
%
 
10,943

 
11.6
%
 
—

 
—

Other operating expenses
 
15,439

 
16.1
%
 
13,197

 
14.0
%
 
—

 
—

Selling, general and administrative expenses
 
6,775

 
7.1
%
 
10,964

 
11.7
%
 
11,747

 
13,505

Depreciation and amortization expense
 
4,242

 
4.4
%
 
4,195

 
4.4
%
 
2,925

 
2,381

Impairments
 
—

 
—
%
 
—

 
—
%
 
16,000

 
—

Total as Reported
 
18,679

 
19.4
%
 
13,997

 
14.8
%
 
(30,672
)
 
(15,886
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
—

 
 
 
—

 
 
 
—

 
—

Cost of sales
 
—

 
 
 
—

 
 
 
—

 
—

Operating wage and fringe benefit expenses
 
—

 
 
 
—

 
 
 
—

 
—

Other operating expenses
 
—

 
 
 
—

 
 
 
—

 
—

Selling, general and administrative expenses
 
—

 
 
 
(3,606
)
 
 
 
(479
)
 
—

Depreciation and amortization expense
 
—

 
 
 
—

 
 
 
—

 
—

Impairments
 
—

 
 
 
—

 
 
 
(16,000
)
 
—

Total adjustments
 
—

 
 
 
3,606

 
 
 
16,479

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP operating income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
96,158

 
 
 
94,280

 
 
 
—

 
—

Cost of sales
 
40,225

 
41.8
%
 
40,984

 
43.5
%
 
—

 
—

Operating wage and fringe benefit expenses
 
10,798

 
11.2
%
 
10,943

 
11.6
%
 
—

 
—

Other operating expenses
 
15,439

 
16.1
%
 
13,197

 
14.0
%
 
—

 
—

Selling, general and administrative expenses
 
6,775

 
7.1
%
 
7,358

 
7.8
%
 
11,268

 
13,505

Depreciation and amortization expense
 
4,242

 
4.4
%
 
4,195

 
4.4
%
 
2,925

 
2,381

Impairments
 
—

 
—
%
 
—

 
—
%
 
—

 
—

Total non-GAAP operating income (loss)
 
$
18,679

 
19.4
%
 
$
17,603

 
18.7
%
 
$
(14,193
)
 
$
(15,886
)


























8


Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Second quarter Fiscal 2016, six months ended October 28, 2016, compared to the corresponding period a year ago:
(in thousands, except per share amounts)
 
 
 
 
Basic EPS
 
Diluted EPS
 
Six Months Ended
 
Six Months Ended
 
Six Months Ended
 
October 28, 2016
 
October 23, 2015
 
October 28, 2016
 
October 23, 2015
 
October 28, 2016
 
October 23, 2015
Operating Income (Loss) as Reported
 
 
 
 
 
 
 
 
 
 
 
Bob Evans Restaurants
$
25,062

 
$
23,132

 
 
 
 
 
 
 
 
BEF Foods
34,066

 
29,834

 
 
 
 
 
 
 
 
Corporate and Other
(43,963
)
 
(33,270
)
 
 
 
 
 
 
 
 
Operating Income
15,165

 
19,696

 
 
 
 
 
 
 
 
Net interest expense
3,633

 
5,489

 
 
 
 
 
 
 
 
Income Before Income Taxes
11,532

 
14,207

 
 
 
 
 
 
 
 
Provision (benefit) for income taxes
2,151

 
3,496

 
 
 
 
 
 
 
 
Net Income as reported
9,381

 
10,711

 
$
0.47

 
$
0.48

 
$
0.47

 
$
0.47

 
 
 
 
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
 
 
 
 
Bob Evans Restaurants
 
 
 
 
 
 
 
 
 
 
 
Severance/Restructuring
—

 
318

 
 
 
 
 
 
 
 
Store Closure Costs
807

 
—

 
 
 
 
 
 
 
 
Litigation Reserves
(278
)
 
10,500

 
 
 
 
 
 
 
 
 
529

 
10,818

 
 
 
 
 
 
 
 
BEF Foods
 
 
 
 
 
 
 
 
 
 
 
Loss on Sale of Assets
—

 
3,606

 
 
 
 
 
 
 
 
 
—

 
3,606

 
 
 
 
 
 
 
 
Corporate and Other
 
 
 
 
 
 
 
 
 
 
 
Impairments
16,000

 
—

 
 
 
 
 
 
 
 
Activism, Strategic Initiatives and Other
479

 
—

 
 
 
 
 
 
 
 
 
16,479

 
—

 
 
 
 
 
 
 
 
Total adjustments
 
 
 
 
 
 
 
 
 
 
 
Impairments
16,000

 
—

 
 
 
 
 
 
 
 
Severance/Restructuring
807

 
318

 
 
 
 
 
 
 
 
Loss on Sale of Assets
—

 
3,606

 
 
 
 
 
 
 
 
Activism, Strategic Initiatives and Other
479

 
—

 
 
 
 
 
 
 
 
Litigation Reserves
(278
)
 
10,500

 
 
 
 
 
 
 
 
 
17,008

 
14,424

 
 
 
 
 
 
 
 
Non-GAAP operating income (loss)
 
 
 
 
 
 
 
 
 
 
 
Bob Evans Restaurants
25,591

 
33,950

 
 
 
 
 
 
 
 
BEF Foods
34,066

 
33,440

 
 
 
 
 
 
 
 
Corporate and Other
(27,484
)
 
(33,270
)
 
 
 
 
 
 
 
 
Total non-GAAP operating income
32,173

 
34,120

 
 
 
 
 
 
 
 
Adjustments to net interest expense
1,133

 
(480
)
 
 
 
 
 
 
 
 
Non-GAAP net interest expense
4,766

 
5,009

 
 
 
 
 
 
 
 
Non-GAAP Income Before Taxes
27,407

 
29,111

 
 
 
 
 
 
 
 
Adjustments to income tax provision (benefit)
4,521

 
4,712

 
 
 
 
 
 
 
 
Non-GAAP Provision for Income Taxes
6,672

 
8,208

 
 
 
 
 
 
 
 
Non-GAAP Net Income
$
20,735

 
$
20,903

 
$
1.05

 
$
0.93

 
$
1.04

 
$
0.93

 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
19,807

 
22,421

 
19,982

 
22,572











9



Second quarter Fiscal 2016, six months ended October 28, 2016, compared to the corresponding period a year ago:
(in thousands)
Six Months Ended
 
Consolidated Results
 
Bob Evans Restaurants
 
October 28, 2016
 
% of Sales
 
October 23, 2015
 
% of Sales
 
October 28, 2016
 
% of Sales
 
October 23, 2015
 
% of Sales
Operating income as reported
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
622,280

 
 
 
$
646,734

 
 
 
$
440,181

 
 
 
$
469,410

 
 
Cost of sales
189,482

 
30.4
%
 
199,030

 
30.8
%
 
111,243

 
25.3
%
 
123,192

 
26.2
%
Operating wage and fringe benefit expenses
200,848

 
32.3
%
 
209,287

 
32.4
%
 
180,866

 
41.1
%
 
188,922

 
40.2
%
Other operating expenses
114,098

 
18.3
%
 
107,815

 
16.7
%
 
85,562

 
19.4
%
 
83,001

 
17.7
%
Selling, general and administrative expenses
50,945

 
8.2
%
 
70,361

 
10.9
%
 
15,371

 
3.5
%
 
23,868

 
5.1
%
Depreciation and amortization expense
35,219

 
5.7
%
 
40,260

 
6.2
%
 
21,554

 
4.9
%
 
27,010

 
5.8
%
Impairments
16,523

 
2.7
%
 
285

 
—
%
 
523

 
0.1
%
 
285

 
0.1
%
Total as reported
$
15,165

 
2.4
%
 
$
19,696

 
3.0
%
 
$
25,062

 
5.7
%
 
$
23,132

 
4.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
—

 
 
 
—

 
 
 
$
—

 
 
 
$
—

 
 
Cost of sales
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Operating wage and fringe benefit expenses
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Other operating expenses
(340
)
 
 
 
—

 
 
 
(340
)
 
 
 
—

 
 
Selling, general and administrative expenses
(668
)
 
 
 
(14,424
)
 
 
 
(189
)
 
 
 
(10,818
)
 
 
Depreciation and amortization expense
—

 
 
 
—

 
 
 
—

 
 
 
—

 
 
Impairments
(16,000
)
 
 
 
—

 
 
 
—

 
 
 
—

 
 
Total Adjustments
$
17,008

 
 
 
$
14,424

 
 
 
$
529

 
 
 
$
10,818

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP operating income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
622,280

 
 
 
$
646,734

 
 
 
$
440,181

 
 
 
$
469,410

 
 
Cost of sales
189,482

 
30.4
%
 
199,030

 
30.8
%
 
111,243

 
25.3
%
 
123,192

 
26.2
%
Operating wage and fringe benefit expenses
200,848

 
32.3
%
 
209,287

 
32.4
%
 
180,866

 
41.1
%
 
188,922

 
40.2
%
Other operating expenses
113,758

 
18.3
%
 
107,815

 
16.7
%
 
85,221

 
19.4
%
 
83,001

 
17.7
%
Selling, general and administrative expenses
50,276

 
8.0
%
 
55,937

 
10.9
%
 
15,182

 
3.4
%
 
13,050

 
2.8
%
Depreciation and amortization expense
35,219

 
5.7
%
 
40,260

 
6.2
%
 
21,554

 
4.9
%
 
27,010

 
5.8
%
Impairments
523

 
0.1
%
 
285

 
—
%
 
523

 
0.1
%
 
285

 
0.1
%
Total non-GAAP operating income
$
32,174

 
5.2
%
 
$
34,120

 
3.0
%
 
$
25,592

 
5.8
%
 
$
33,950

 
7.2
%










10


(in thousands)
Six Months Ended
 
BEF Foods
 
Corporate and Other
 
October 28, 2016
 
% of Sales
 
October 23, 2015
 
% of Sales
 
October 28, 2016
 
October 23, 2015
Operating income (loss) as reported
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
182,099

 
 
 
$
177,324

 
 
 
$
—

 
$
—

Cost of sales
78,239

 
43.0
%
 
75,838

 
42.8
%
 
—

 
—

Operating wage and fringe benefit expenses
19,982

 
11.0
%
 
20,365

 
11.5
%
 
—

 
—

Other operating expenses
28,537

 
15.7
%
 
24,814

 
14.0
%
 
—

 
—

Selling, general and administrative expenses
13,240

 
7.2
%
 
17,880

 
10.1
%
 
22,333

 
28,613

Depreciation and amortization expense
8,035

 
4.4
%
 
8,593

 
4.8
%
 
5,630

 
4,657

Impairments
—

 
—
%
 
—

 
—
%
 
16,000

 
—

Total as Reported
$
34,066

 
18.7
%
 
$
29,834

 
16.8
%
 
$
(43,963
)
 
$
(33,270
)
 
 
 
 
 
 
 
 
 
 
 
 
Adjustments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
—

 
 
 
$
—

 
 
 
$
—

 
$
—

Cost of sales
—

 
 
 
—

 
 
 
—

 
—

Operating wage and fringe benefit expenses
—

 
 
 
—

 
 
 
—

 
—

Other operating expenses
—

 
 
 
—

 
 
 
—

 
—

Selling, general and administrative expenses
—

 
 
 
(3,606
)
 
 
 
(479
)
 
—

Depreciation and amortization expense
—

 
 
 
—

 
 
 
—

 
—

Impairments
—

 
 
 
—

 
 
 
(16,000
)
 
—

Total adjustments
$
—

 
 
 
$
3,606

 
 
 
$
16,479

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP operating income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
$
182,099

 
 
 
$
177,324

 
 
 
$
—

 
$
—

Cost of sales
78,239

 
43.0
%
 
75,838

 
42.8
%
 
—

 
—

Operating wage and fringe benefit expenses
19,982

 
11.0
%
 
20,365

 
11.5
%
 
—

 
—

Other operating expenses
28,537

 
15.7
%
 
24,814

 
14.0
%
 
—

 
—

Selling, general and administrative expenses
13,240

 
7.2
%
 
14,274

 
8.0
%
 
21,854

 
28,613

Depreciation and amortization expense
8,035

 
4.4
%
 
8,593

 
4.8
%
 
5,630

 
4,657

Impairments
—

 
—
%
 
—

 
—
%
 
—

 
—

Total non-GAAP operating income (loss)
$
34,066

 
18.7
%
 
$
33,440

 
18.9
%
 
$
(27,484
)
 
$
(33,270
)





GAAP to Non-GAAP reconciliation of forecasted full year EPS results:
 
GAAP Diluted EPS
 
Non-GAAP Diluted EPS
Year to date EPS through Q2 2017
$0.47
 
$1.04
Expected GAAP EPS - second half of fiscal 2017
$1.07 - $1.25
 
$1.07 - $1.25
Expected impact of non GAAP items - second half of fiscal 2017
—
 
$0.01 - $0.04
Expected full year EPS - fiscal 2017
$1.54 - $1.72
 
$2.15 - $2.30


11



Consolidated Statements of Net Income
(in thousands, except per share amounts)
Three Months Ended
 
Six Months Ended
 
October 28, 2016
% of Sales
October 23, 2015
% of Sales
 
October 28, 2016
% of Sales
October 23, 2015
% of Sales
Net Sales
$
315,963

 
$
325,021

 
 
$
622,280

 
$
646,734

 
Cost of sales
96,232

30.5
%
102,709

31.6
%
 
189,482

30.4
%
199,030

30.8
%
Operating wage and fringe benefit expenses
100,150

31.7
%
104,403

32.1
%
 
200,848

32.3
%
209,287

32.4
%
Other operating expenses
58,457

18.5
%
56,181

17.3
%
 
114,098

18.3
%
107,815

16.7
%
Selling, general and administrative expenses
25,487

8.0
%
29,902

9.2
%
 
50,945

8.2
%
70,361

10.9
%
Depreciation and amortization expense
17,646

5.6
%
20,107

6.2
%
 
35,219

5.7
%
40,260

6.2
%
Impairments
16,523

5.2
%
285

0.1
%
 
16,523

2.7
%
285

—
%
Operating Income
1,468

0.5
%
11,434

3.5
%
 
15,165

2.4
%
19,696

3.0
%
Net interest expense
1,741


2,883


 
3,633


5,489


(Loss) Income Before Income Taxes
(273
)

8,551


 
11,532


14,207


       (Benefit) Provision for income taxes
(491
)

2,120


 
2,151


3,496


Net Income
$
218


$
6,431


 
$
9,381


$
10,711


Earnings Per Share — Net Income
 
 
 
 
 
 
 

 
Basic
$
0.01

 
$
0.29

 
 
$
0.47

 
$
0.48

 
Diluted
$
0.01

 
$
0.29

 
 
$
0.47

 
$
0.47

 
 
 
 
 
 
 
 
 
 
 
Cash Dividends Paid Per Share
$
0.34

 
$
0.31

 
 
$
0.68

 
$
0.62

 
 
 
 
 
 
 
 
 
 
 
Weighted Average Shares Outstanding
 
 
 
 
 
 
 
 
 
Basic
19,825

 
22,115

 
 
19,807

 
22,421

 
Dilutive shares
139

 
118

 
 
175

 
151

 
Diluted
19,964

 
22,233

 
 
19,982

 
22,572

 
 
 
 
 
 
 
 
 
 
 
Shares outstanding at quarter end
19,766

 
21,379

 
 
 
 
 
 



12


Consolidated Balance Sheets
(in thousands, except par values)
October 28, 2016
 
April 29, 2016
Assets

 

Current Assets

 

Cash and equivalents
$
4,883

 
$
12,896

Accounts receivable, net
39,823

 
28,893

Inventories
33,335

 
24,997

Federal and state income taxes receivable
4,309

 
—

Prepaid expenses and other current assets
8,816

 
9,307

Current assets held for sale
23,887

 
31,644

Total Current Assets
115,053

 
107,737

Property, plant and equipment
1,285,883

 
1,263,413

Less accumulated depreciation
689,722

 
665,777

Net Property, Plant and Equipment
596,161

 
597,636

Other Assets
 
 
 
Deposits and other
3,826

 
4,622

Notes receivable, net
6,256

 
20,886

Rabbi trust assets
21,629

 
20,662

Goodwill and other intangible assets
19,751

 
19,829

Non-current deferred tax assets
34,905

 
29,002

Total Other Assets
86,367

 
95,001

Total Assets
$
797,581

 
$
800,374

Liabilities and Stockholders’ Equity

 

Current Liabilities

 

Current portion of long-term debt
$
3,423

 
$
3,419

Accounts payable
41,628

 
37,518

Accrued property, plant and equipment purchases
5,149

 
5,308

Accrued non-income taxes
14,246

 
15,696

Accrued wages and related liabilities
19,417

 
26,358

Self-insurance reserves
18,429

 
20,169

Deferred gift card revenue
12,051

 
14,147

Current taxes payable
2,699

 
9,473

Current reserve for uncertain tax provision
1,481

 
1,481

Other accrued expenses
25,773

 
31,988

Total Current Liabilities
144,296

 
165,557

Long-Term Liabilities

 

Deferred compensation
18,022

 
17,761

Reserve for uncertain tax positions
2,650

 
2,752

Deferred rent and other
6,313

 
5,851

Long-term deferred gain
54,803

 
56,371

Credit facility borrowings and other long-term debt
358,360

 
335,638

Total Long-Term Liabilities
440,148

 
418,373

Stockholders’ Equity

 

Common stock, $.01 par value; authorized 100,000 shares; issued 42,638 shares at October 28, 2016, and April 29, 2016
426

 
426

Capital in excess of par value
245,535

 
244,304

Retained earnings
827,999

 
832,323

Treasury stock, 22,872 shares at October 28, 2016, and 22,881 shares at April 29, 2016, at cost
(860,823
)
 
(860,609
)
Total Stockholders’ Equity
213,137

 
216,444

Total Liabilities and Stockholders' Equity
$
797,581

 
$
800,374



13


Consolidated Statements of Cash Flows

Six Months Ended
 
October 28, 2016
 
October 23, 2015
Operating activities:
 
 
 
Net income
$
9,381

 
$
10,711

Adjustments to reconcile net income to net cash provided by operating activities:

 

Depreciation and amortization
35,218

 
40,260

Impairments
16,523

 
285

(Gain) Loss on disposal of fixed assets
(1,664
)
 
1,603

(Gain) Loss on rabbi trust assets
(967
)
 
2,453

Loss (Gain) on deferred compensation
1,115

 
(1,462
)
Share-based compensation
3,263

 
3,329

Accretion on long-term note receivable
(1,133
)
 
(1,011
)
Deferred income taxes
(5,903
)
 
161

Amortization of deferred financing costs
720

 
1,336

Cash provided by (used for) assets and liabilities:

 

Accounts receivable
(10,930
)
 
(5,597
)
Inventories
(8,338
)
 
(4,558
)
Prepaid expenses and other current assets
491

 
(1,136
)
Accounts payable
4,110

 
8,454

Federal and state income taxes
(11,185
)
 
10,719

Accrued wages and related liabilities
(6,941
)
 
(7,710
)
Self-insurance
(1,740
)
 
1,904

Accrued non-income taxes
(1,450
)
 
2,072

Deferred revenue
(2,096
)
 
(1,794
)
Other assets and liabilities
(7,060
)
 
6,332

Net cash provided by operating activities
11,414

 
66,351

Investing activities:

 

Purchase of property, plant and equipment
(37,086
)
 
(26,667
)
Proceeds from sale of property, plant and equipment
10,688

 
58,451

Deposits and other
130

 
(566
)
Net cash (used in) provided by investing activities
(26,268
)
 
31,218

Financing activities:

 

Cash dividends paid
(13,452
)
 
(14,040
)
Gross proceeds from credit facility borrowings and other long-term debt
189,179

 
380,192

Gross repayments of credit facility borrowings and other long-term debt
(166,490
)
 
(356,610
)
Payments of debt issuance costs
—

 
(2,517
)
Purchase of treasury stock
—

 
(104,929
)
Proceeds from share-based compensation
—

 
214

Cash paid for taxes on share-based compensation
(667
)
 
(1,007
)
Excess tax benefits from share-based compensation
(1,729
)
 
131

Net cash provided by (used in) financing activities
6,841

 
(98,566
)
Net decrease in cash and equivalents
(8,013
)
 
(997
)
Cash and equivalents at the beginning of the period
12,896

 
6,358

Cash and equivalents at the end of the period
$
4,883

 
$
5,361


14


Bob Evans Restaurants same-store sales analysis (18-month core; 521 restaurants)
 
Fiscal 2017
 
Fiscal 2016
 
Total
 
Pricing / Mix
 
Transactions
 
Total
 
Pricing / Mix
 
Transactions
May
(2.8)%
 
1.2%
 
(4.0)%
 
(0.3)%
 
3.9%
 
(4.2)%
June
(6.1)%
 
1.2%
 
(7.3)%
 
(0.9)%
 
4.4%
 
(5.3)%
July
(4.1)%
 
1.1%
 
(5.2)%
 
0.3%
 
5.8%
 
(5.5)%
Q1
(4.3)%
 
1.2%
 
(5.5)%
 
(0.3)%
 
4.8%
 
(5.0)%
 
 
 
 
 
 
 
 
 
 
 
 
August
(2.0)%
 
1.1%
 
(3.1)%
 
(1.3)%
 
3.3%
 
(4.6)%
September
(2.0)%
 
0.8%
 
(2.8)%
 
(3.8)%
 
2.9%
 
(6.6)%
October
(1.4)%
 
1.2%
 
(2.6)%
 
(4.4)%
 
1.5%
 
(5.8)%
Q2
(1.8)%
 
1.0%
 
(2.8)%
 
(3.2)%
 
2.5%
 
(5.7)%
 
 
 
 
 
 
 
 
 
 
 
 
November
 
 
 
 
 
 
(3.2)%
 
2.5%
 
(5.6)%
December
 
 
 
 
 
 
(4.3)%
 
3.4%
 
(7.7)%
January
 
 
 
 
 
 
(3.4)%
 
3.1%
 
(6.5)%
Q3
 
 
 
 
 
 
(3.6)%
 
2.9%
 
(6.5)%
 
 
 
 
 
 
 
 
 
 
 
 
February
 
 
 
 
 
 
(1.1)%
 
0.9%
 
(2.0)%
March
 
 
 
 
 
 
(2.3)%
 
2.2%
 
(4.5)%
April
 
 
 
 
 
 
(4.9)%
 
1.4%
 
(6.3)%
Q4
 
 
 
 
 
 
(3.0)%
 
1.5%
 
(4.4)%
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year
(3.1)%
 
1.1%
 
(4.1)%
 
(2.5)%
 
2.9%
 
(5.4)%
* Prior year data presentation reflects Company's current same-store sales methodology.





Bob Evans Restaurants same-store sales day part performance
Second-quarter Fiscal 2017 SSS% Day Part Performance - Total Chain
Day Part
 
On-Premises
 
Off-Premises
 
Total
Breakfast
 
(0.7)%
 
6.5%
 
0.1%
Lunch
 
(1.6)%
 
(0.2)%
 
(1.5)%
Dinner
 
(4.4)%
 
(2.6)%
 
(4.1)%
Total
 
(2.1)%
 
0.2%
 
(1.8)%



15


Bob Evans Restaurants key restaurant sales data
 
Bob Evans Restaurants
Average annual store sales ($) - FY17
$1.7 million

 
 
Q2 FY2017 day part mix (%):
 
Breakfast
33
%
Lunch
36
%
Dinner
31
%
 
 
Q2 FY2017 dine-in check average per guest ($):
 
Breakfast
$
9.52

Lunch
$
9.83

Dinner
$
9.81

 
 
Q2 FY2017 dine-in check average per guest ($):
$
9.72

Q2 FY2017 dine-in check average per ticket ($):
$
18.78

Q2 FY2017 carry-out check average per ticket ($):
$
16.50




BEF Foods total pounds sold, by category
 
 
 
 
 
 
Fiscal 2017
 
 
 
 
 
 
 
 
 
 
Category
 
Q1
 
Q2
 
Q3
 
Q4
 
YTD
Sides
 
51.4%
 
52.5%
 
 
 
 
 
51.9%
Sausage
 
21.2%
 
21.9%
 
 
 
 
 
21.6%
Food Service - External
 
11.6%
 
10.7%
 
 
 
 
 
11.1%
Food Service - Intersegment
 
8.3%
 
9.0%
 
 
 
 
 
8.7%
Frozen
 
3.9%
 
3.4%
 
 
 
 
 
3.7%
Other
 
3.6%
 
2.5%
 
 
 
 
 
3.0%
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2016
 
 
 
 
 
 
 
 
 
 
Category
 
Q1
 
Q2
 
Q3
 
Q4
 
FY 2016
Sides
 
49.6%
 
50.7%
 
50.9%
 
51.4%
 
50.7%
Sausage
 
22.0%
 
22.3%
 
26.6%
 
21.7%
 
23.3%
Food Service - External
 
14.1%
 
12.5%
 
10.4%
 
11.4%
 
11.9%
Food Service - Intersegment
 
6.2%
 
6.6%
 
6.0%
 
8.1%
 
6.7%
Frozen
 
4.6%
 
4.5%
 
3.1%
 
3.9%
 
4.0%
Other
 
3.5%
 
3.4%
 
3.0%
 
3.5%
 
3.4%


16

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