February Benihana Chef's Special

Miami, FL  (RestaurantNews.com)  Benihana Inc. (NASDAQ: BNHN), the nation’s leading operator of Japanese theme and sushi restaurants, has announced the February Chef’s Specials, Hibachi Steak & Chicken for Two, a five-course feast for only $45 and Seafood Diablo for One, five courses for just $20.

Take a break from the dreary days of February with a warm, festive dinner at Benihana with close friends and family. Throughout the month, two guests can enjoy this Benihana teppanyaki treat of Hibachi Steak and Chicken entrees grilled with mushrooms and sesame seeds, Benihana onion soup, Benihana salad, hibachi shrimp appetizer, hibachi vegetables, homemade dipping sauces, steamed rice and Japanese hot green tea, a five-course meal for just $45 (tax and gratuity excluded). Another option this month is the Seafood Diablo for One, a medley of sea scallops, calamari, shrimp, assorted vegetables and Japanese udon noodles grilled in a homemade spicy sauce, along with Benihana onion soup, Benihana salad, hibachi shrimp appetizer, homemade dipping sauces, steamed rice and Japanese hot green tea, a five-course meal for only $20 (tax and gratuity excluded).

Enjoy either of the February Chef’s Specials with one of Benihana’s specialty drinks such as the Passionate Saketini or the Cherry Pomegranate Mojito. Or try one of Benihana’s suggested wine pairings, like the Hibachi Steak & Chicken with a glass of Gascon Malbec and the Seafood Diablo with a Moscato by Beringer.

Both Chef’s Specials are available throughout the month of February, excluding Valentine’s Day on February 14. The specials can be found at all Benihana restaurants in the United States with the exception of Las Vegas, Little Rock and Hawaii.

For more information about the February Chef’s Special or to find a Benihana location, visit www.benihana.com.

About Benihana

Headquartered in Miami, Benihana Inc. (NASDAQ GS: BNHN) is the nation’s leading operator of Japanese theme and sushi restaurants with 96 restaurants nationwide, including 63 Benihana restaurants, eight Haru sushi restaurants, and 25 RA Sushi restaurants. In addition, 18 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. To learn more about Benihana Inc. and its three restaurant concepts, please view the corporate video at www.benihana.com/about/video. 

Benihana Inc. Reports Total Restaurant Sales and Comparable Restaurant Sales Results for the Final Four-Week Period and Entire Twelve-Week Period of the Third Fiscal Quarter 2012

Miami, FL  (RestaurantNews.com)  Benihana Inc. (NASDAQ: BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today reported total restaurant sales and comparable restaurant sales for the final four-week period (December 5, 2011 – January 1, 2012) and the entire twelve-week period of the third fiscal quarter of 2012. The announcement marks the Company’s twenty-fourth consecutive four-week period and its eighth consecutive quarter of comparable restaurant sales growth.

Richard C. Stockinger, Chairman, President and Chief Executive Officer of Benihana Inc., said, “We are very pleased with yet another period and quarter of excellent sales growth driven by increased traffic. Benihana Inc. has now produced twenty-four consecutive four-week periods, and eight consecutive quarters of comparable restaurant sales growth, in a very difficult consumer and economic environment. During this time frame, our core Benihana Teppanyaki brand has consistently produced comparable sales increases that led or were among the best in the category.  This achievement reflects the continued strength of our iconic brand and the outstanding efforts of our entire Benihana team.”

For the four-week period ended January 1, 2012, total restaurant sales increased year over year by 6.4% to $28.6 million from $26.9 million, and Company-wide comparable restaurant sales increased by 7.0% to $28.6 million from $26.7 million. By concept, comparable restaurant sales increased 7.1% at Benihana Teppanyaki, 5.8% at RA Sushi and 9.9% at Haru. These results were driven by traffic growth of 4.7% at Benihana Teppanyaki.

During the period, Benihana Teppanyaki represented approximately ­­72% of total restaurant sales, while RA Sushi and Haru accounted for 20% and 8% of total restaurant sales, respectively. There were 384 store-operating weeks in the final four-week period of the third fiscal quarter of 2012 compared to 388 store-operating weeks in the same period of the prior year.

For the twelve-week third fiscal quarter of 2012, total restaurant sales increased year over year by 5.7% to $76.7 million from $72.6 million, and Company-wide comparable restaurant sales increased by 7.0% to $76.4 million from $71.4 million. By concept, comparable restaurant sales increased 8.2% at Benihana Teppanyaki, 4.8% at RA Sushi and 3.6% at Haru. These results were driven by traffic growth of 6.4% at Benihana Teppanyaki.

During the quarter, Benihana Teppanyaki represented approximately 69% of total restaurant sales, while RA Sushi and Haru accounted for 22% and 9% of total restaurant sales, respectively. There were 1,144 store-operating weeks in the third fiscal quarter of 2012 compared to 1,158 store-operating weeks in the same period of the prior year.

The Benihana Teppanyaki restaurant located on W. 56 St. in Manhattan began temporary closure during the prior quarter for extensive remodeling. This restaurant has been excluded from reported comparable sales results during the temporary closure period, which ended December 11, 2011.

As previously announced, the Company will report future sales results only on a quarterly basis, consistent with customary restaurant industry practices.

About Benihana

Headquartered in Miami, Benihana Inc. (NASDAQ: BNHN) is the nation’s leading operator of Japanese theme and sushi restaurants with 96 restaurants nationwide, including 63 Benihana restaurants, eight Haru sushi restaurants and 25 RA Sushi restaurants. In addition, 18 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. To learn more about Benihana Inc. and its three restaurant concepts, please view the corporate video at www.benihana.com/about/video.

Safe Harbor Statement

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of Benihana, including, without limitation: risks related to Benihana’s business strategy, including the Renewal Program and marketing programs; risks related to Benihana’s ability to operate successfully in the current challenging economic environment; risks related to Benihana’s efforts to strengthen its Benihana Teppanyaki concept and build its RA Sushi and Haru brands; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. Past performance may not be indicative of future results. Although Benihana believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. In addition to the risks and uncertainties set forth above, investors should consider the risks and uncertainties discussed in Benihana’s filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading “Risk Factors” in such filings. Benihana does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Benihana Inc. Announces Initiation of Quarterly Dividend Payment

Miami, FL  (RestaurantNews.com)  Benihana Inc. (NASDAQ: BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today announced that the Board of Directors has authorized and declared a quarterly dividend in the amount of $0.08 per Common Share.  The dividend is payable in cash on January 30, 2012 to stockholders of record at the close of business on January 13, 2012.

The Company currently intends to begin payments of regular quarterly dividends; however, the actual declaration of such future dividends and the establishment of the per share amount, record dates, and payment dates for such future dividends are subject to final determination by the Company’s Board, and will be dependent upon future earnings, cash flows, financial requirements, and other factors.

Richard C. Stockinger, Chairman, President, and Chief Executive Officer of Benihana Inc., said, “We are pleased that the very strong financial performance of the Company and strength of our balance sheet has allowed the Board to initiate a quarterly dividend program to return a portion of our excess cash flow to shareholders.  The ability to fund our planned new unit growth beginning in fiscal year 2013 and beyond from operating cash flows while at the same time providing a solid 3% dividend yield to our investors is a testament to our restaurant level unit economics and the efficiency with which we are managing the administrative portion of the business.”

About Benihana

Headquartered in Miami, Benihana Inc. (NASDAQ: BNHN) is the nation’s leading operator of Japanese theme and sushi restaurants with 96 restaurants nationwide, including 63 Benihana restaurants, eight Haru sushi restaurants and 25 RA Sushi restaurants. In addition, 18 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. To learn more about Benihana Inc. and its three restaurant concepts, please view the corporate video at www.benihana.com/about/video.

Safe Harbor Statement

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of Benihana, including, without limitation: risks related to Benihana’s business strategy, including the Renewal Program and marketing programs; risks related to Benihana’s ability to operate successfully in the current challenging economic environment; risks related to Benihana’s efforts to strengthen its Benihana Teppanyaki concept and build its RA Sushi and Haru brands; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. Past performance may not be indicative of future results. Although Benihana believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. In addition to the risks and uncertainties set forth above, investors should consider the risks and uncertainties discussed in Benihana’s filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading “Risk Factors” in such filings. Benihana does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

January Benihana Chef's Special

Miami, FL  (RestaurantNews.com)  Benihana Inc. (NASDAQ: BNHN), the nation’s leading operator of Japanese theme and sushi restaurants, has announced the January Chef’s Special, Hibachi Shrimp & Chicken for Two, a five-course feast for only $36 and Hibachi Mango Salmon for One, five courses for just $21.

Ring in the New Year with a visit to Benihana with friends and family. Throughout the month, two guests can enjoy this Benihana teppanyaki treat of two hibachi shrimp and chicken entrees grilled with mushrooms and sesame seeds, Benihana onion soup, Benihana salad, hibachi shrimp appetizer, hibachi vegetables, homemade dipping sauces, steamed rice and Japanese hot green tea, a five-course meal for just $36 (tax and gratuity excluded). Another option this month is the hibachi mango salmon special for one, paired with sweet potatoes and vegetables in a delicious Asian inspired mango salsa, Benihana onion soup, Benihana salad, hibachi shrimp appetizer, homemade dipping sauces, steamed rice and Japanese hot green tea, a five-course meal for only $21 (tax and gratuity excluded).

Enjoy either of the January Chef’s Specials with one of Benihana’s specialty drinks such as the Strawberry Saketini or Cucumber Collins. Or try either special with a glass of Kim Crawford Sauvignon Blanc.

Both Chef’s Specials are available throughout the entire month of January at all Benihana restaurants in the United States with the exception of Little Rock and Hawaii.

For more information about the January Chef’s Special or to find a Benihana location, visit www.benihana.com.

About Benihana

Headquartered in Miami, Benihana Inc. (NASDAQ GS: BNHN) is the nation’s leading operator of Japanese theme and sushi restaurants with 96 restaurants nationwide, including 63 Benihana restaurants, eight Haru sushi restaurants, and 25 RA Sushi restaurants. In addition, 18 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. To learn more about Benihana Inc. and its three restaurant concepts, please view the corporate video at www.benihana.com/about/video.

Benihana Inc. Sends Letter to Stockholders

Miami, FL  (RestaurantNews.com)  Benihana Inc. (NASDAQ: BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today sent a letter to stockholders highlighting the Company’s continued performance momentum, and recommending that stockholders support the Company’s nominees for election to the Board of Directors by signing and returning the WHITE proxy card as soon as possible.

The full text of the letter is as follows:

December 20, 2011

Dear fellow Benihana stockholders:

Benihana will elect three new Class I members to its Board of Directors (the “Board”) at its Annual Meeting, which will be held on January 10, 2012.  We are delighted with our slate of three experienced and independent directors who will further strengthen the Board with their deep industry knowledge and experience.  Ronald Castell, who is an incumbent director, most recently founded ReelRon LLC, a marketing consulting firm, and, among prior experience, has served as Senior Vice President at Blockbuster Entertainment Corp. and Huizenga Holdings, Inc.  He will be joined by two new nominees whose backgrounds strongly complement the expertise of the existing directors – Michael Kaufman, President of the restaurant group of Centerplate, Inc., an $800 million provider of food service in sports, convention and entertainment venues; and Richard Snead, former President and Chief Executive Officer of Carlson Restaurants Worldwide, Inc., the parent company of T.G.I. Friday’s.  At the same time, Darwin Dornbush, Lewis Jaffe, and Joseph West will not stand for re-election in 2012, after many years of collective service to the Company.

Benihana’s Board has proven its ability to execute operationally and deliver strong performance results for its stockholders, while implementing initiatives that will further contribute to enhancing shareholder value.  Benihana’s strong sales momentum, including its twenty-third consecutive period of comparable sales growth reported on December 8, 2011, demonstrates the success produced by your Board and management team’s continued focus on growing the value of your investment in Benihana.

Additionally, on November 29, 2011, your Company announced that Benihana stockholders had approved its reclassification proposal.  This represented a transformational event for Benihana – one that simplified the Company’s capital structure instantly by creating a single class of Benihana’s Common Stock.  Supporting the belief that a single class structure is in the best interest of all stockholders, BFC Financial Corporation voluntarily eliminated the Series B Preferred Stock by converting its holdings to Common Stock.

Therefore, your Board has unanimously approved the Company’s slate of nominees for election to the Board, and we recommend that all stockholders vote for the election of the nominees, each of whom is committed to continuing to enhance the value of Benihana for its stockholders.

Your vote is critical to your investment and the future success of your Company.  Your vote is important regardless of the number of shares you own.  Please take the time to vote today.  To protect your investment, please take a moment right now to sign, date, and return the enclosed WHITE proxy card.

If your shares are registered in your own name, please sign, date and mail the enclosed WHITE proxy card to Georgeson in the self-addressed, stamped envelope provided.  If your shares are held in the name of a brokerage firm, bank nominee or other institution, please sign, date and mail the enclosed WHITE proxy card in the self-addressed, stamped envelope provided. If you have any questions or need assistance in voting your shares, please contact our proxy solicitor at the following:

Georgeson
199 Water Street, 26th Floor
New York, NY  10038
Stockholders Call Toll-Free (888) 549-6618

We thank all of our Board members for a successful year that will position Benihana to continue delivering strong results going forward, and especially those who will be completing their terms this year – Darwin Dornbush, Lewis Jaffe, and Joseph West.

With appreciation for your investment in, and support for Benihana,

Richard C. Stockinger
Chairman, Chief Executive Officer, and President

Safe Harbor Statement

Except for the historical matters contained herein, statements in this letter are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of Benihana, including, without limitation: risks related to Benihana’s business strategy, including the Renewal Program and marketing programs; risks related to Benihana’s ability to operate successfully in the current challenging economic environment; risks related to Benihana’s efforts to strengthen its Benihana Teppanyaki concept and build its RA Sushi and Haru brands; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. Past performance may not be indicative of future results. Although Benihana believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. In addition to the risks and uncertainties set forth above, investors should consider the risks and uncertainties discussed in Benihana’s filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading “Risk Factors” in such filings. Benihana does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Benihana Welcomes Results of Shareholder Vote

Miami, FL  (RestaurantNews.com)  Benihana Inc. (NASDAQ: BNHN; BNHNA), operator of the nation’s largest chain of Japanese theme and sushi restaurants, welcomed the preliminary results of the November 17, 2011 Special Meeting in which stockholders voted in favor of the reclassification proposal (the “Reclassification”) that will simplify the Company’s capital structure by reclassifying each share of Class A Common Stock into one share of Common Stock.

Following the Special Meeting, the inspector of elections has preliminarily determined that a majority of the outstanding Common Stock voted in favor of the Reclassification.  The proposal was also approved by holders of Class A Common Stock.

Richard C. Stockinger, Benihana Inc.’s Chairman, Chief Executive Officer, and President, commented, “The vote results reflect our stockholders’ belief that the Reclassification will simplify the capital structure, improve transparency and liquidity, increase flexibility to pursue strategic opportunities, and strengthen corporate governance.  This is a transformational event for Benihana, and I would like to thank our stockholders for their support.  Our entire Board and management team are focused on increasing the value of the company, and as we continue to build on our strong performance momentum and drive our business forward through new initiatives, we remain continuously focused on enhancing value for our stockholders.”

About Benihana

Headquartered in Miami, Benihana Inc. (NASDAQ GS: BNHN, BNHNA) is the nation’s leading operator of Japanese theme and sushi restaurants with 96 restaurants nationwide, including 63 Benihana restaurants, eight Haru sushi restaurants and 25 RA Sushi restaurants. In addition, 18 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean. To learn more about Benihana Inc. and its three restaurant concepts, please view the corporate video at www.benihana.com/about/video.

Safe Harbor Statement

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of the Benihana, including, without limitation: risks related to Benihana’s business strategy, including the Renewal Program and marketing programs; risks related to Benihana’s ability to operate successfully in the current challenging economic environment; risks related to Benihana’s efforts to strengthen its Benihana Teppanyaki concept and build its RA Sushi and Haru brands; uncertainty as to the final stockholder vote counts pending the completion of the work of the inspector of election; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. Past performance may not be indicative of future results. Although Benihana believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. In addition to the risks and uncertainties set forth above, investors should consider the risks and uncertainties discussed in Benihana’s filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading “Risk Factors” in such filings. Benihana does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Media Contact
Jeremy Fielding / Anntal Silver
Kekst and Company
(212) 521-4800

Restaurant Deals Served Up for Value Hungry Diners

Americans are looking for great food and value when making the decision to spend their hard earned dollars, especially as the holidays approach.  Restaurants, hungry for every dollar they can take in, are increasingly responding with delicious deals, creative combos and tasty twofers.  If you’ve been working up an appetite and can’t decide which restaurant to visit, we’ve put together some favorites that you might enjoy.

Applebee’s 2 for $20 menu continues to draw crowds with a choice of a shareable appetizer and entree choices that include Chicken Fettuccine Carbonara, Applebee’s Riblet Basket, Three Cheese Chicken Penne, 7 ounce House Sirloin and more.  Some items can be upgraded to a platter for two or three dollars more.

Chili’s also continues its popular $20 Dinner for Two menu.  Guests can share an appetizer and two full sized entrees.  Choices include newer options like Grilled Shrimp Tacos, Grilled Vegetable Tacos, Honey-Chipotle Chicken Quesadilla, Margarita Chicken Tacos.

O’Charley’s is offering their 8 Under $8 deal.  Selections include the BBQ Chicken Stack, Bruschetta Chicken, Mushroom & Bleu Cheese Sirloin, Mediterranean Chicken Wrap, Teriyaki Sesame Tilapia, Chicken Tenders with Naked Twisted Chips, Grilled Baja Chicken and the new Chicken Italia.

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Red Lobster casts a net with three Wood-Fired Grilled Surf & Turf entrees under $20.  The Bacon-Wrapped Shrimp and Blue Cheese Sirloin is $14.99, the Crab-Topped Peppercorn-Grilled Sirloin is $17.99 and the Wood-Grilled Maine Lobster & Peppercorn-Grilled Sirloin rounds out the special at $19.99.

Hibachi Steak & Chicken for Two is Benihana’s Chef’s Special for November.  Guests can share two hibachi steak and chicken grilled with mushrooms and sesame seeds, salad, onion soup, hibachi veggies and a shrimp appetizer for $45.

Sizzler is running $9.99 Steak Combos.  Combos include Sizzler’s signature tri tip sirloin steak with Malibu chicken, jumbo fried shrimp or skewered grilled shrimp.

McCormick & Schmick’s gives you the opportunity to Create Your Perfect Combination by choosing two or three selections from five seafood favorites.  Guests can choose two for $23.95 or three for $28.95.  Selections include Grilled Block Island Swordfish, Scampi Grilled Jumbo Shrimp, Phyllo Wrapped True Cod, Grilled Fresh Atlantic Salmon or the Chef’s Signature Crab Cake.  Combos are served with Roasted Pepper and White Cheddar Mashed Potatoes and Chef’s Fresh Vegetables.

Mimi’s Cafe offers their new Family Meals To-Go menu with 10 meals under $25.  Each meal serves between 4 and 5 people and comes with choice of soup or a tossed green or Caesar salad.  Menu items include Mediterranean Chicken Fettuccine, Cajun Chicken Alfredo, Chicken Parmesan, Turkey Dinner, Jambalaya, Meatloaf Stroganoff, Garlic Shrimp Fettuccine, Grilled Meatloaf, Chicken Tender Dinner or Oven Fresh Pot Roast.

Olive Garden’s new Stuffed Rigatoni choices are filled with five Italian cheeses and are available with grilled Italian Sausage for $9.95 or sliced sauteed Chicken for $11.95.  The grilled sausage comes in a tomato alfredo sauce while the chicken comes in a roasted garlic alfredo sauce.  Both come with unlimited salad and breadsticks.

Benihana's House Sake Receives Gold Award at 2011 U.S. National Sake Appraisal

Benihana Inc., the nation’s leading operator of Japanese theme and sushi restaurants, has been given the Gold Award at the 2011 U.S. National Sake Appraisal for its Sho Chiku Bai Classic brand. Sho Chiku Bai Classicis brewed by Takara Sake USA Inc. and is bottled and labeled as “Benihana Sake” for the restaurant’s house sake brand.

Benihana’s house sake competed against 96 contenders in the Junmai category at the international contest and received the Gold Award alongside 26 other entries, the highest award in the Junmai category. Sho Chiku Bai Classic is the only sake made in the U.S. to win the Gold Award this year. The sake was judged amongst its competing beverages by a “blind” tasting conducted in two phases; first, a tasting for all entries and then a secondary tasting of those sakes that placed in the top 50 percent.

The U.S. National Sake Appraisal is an international annual event held since 2001 in Honolulu, Hawaii. Presented by the International Sake Association (Kokusai Sake Kai), the event evaluates 326 sake entries and is the largest event of its kind outside of Japan. Each entry is considered within the following categories: Daiginjo, Ginjo and Junmai. The Appraisal is conducted by ten judges (five from Japan and five from the U.S.) under the auspices of the Japan National Research Institute of Brewing, which has supervised Japan’s National Sake Appraisal since its inception in 1910.

Benihana offers an extensive variety of the traditional Japanese alcoholic beverage at their restaurants, including hot sake, Japanese premium cold sake, premium cold sake and sake flights. There are also specialty drinks available such as the White Peach Sake Sangria and Mango Saketini, both mixed drinks with sake inspiration.

Benihana Reports Results for Second Quarter 2012

Benihana Inc., operator of the nation’s largest chain of Japanese theme and sushi restaurants, has reported financial results for its twelve-week fiscal second quarter 2012, ended October 9, 2011.

Highlights for the fiscal second quarter 2012 relative to the year-ago quarter include:

• Company-wide comparable restaurant sales increased 6.4%, led by the Benihana Teppanyaki concept, which reported 7.7% comparable restaurant sales growth;
• Total revenues increased 5.6% to $76.2 million from $72.2 million, driven by restaurant sales growth;
• Net income was $0.8 million, or $0.05 per diluted share, compared to a net loss of $3.3 million or $0.21 per diluted share;
• Restaurant segment operating income increased 32% to $6.2 million from $4.7 million; and
• As previously announced, the Company extended its fixed-price beef contract through December 2012.

Richard C. Stockinger, Chairman, President and Chief Executive Officer, said, “We are delighted to report another strong quarter, driven by continued sales momentum.  We are particularly pleased that our strategy resulted in a consolidated comparable restaurant sales increase of 6.4% during the quarter, led by a 7.7% increase at our Benihana Teppanyaki restaurants. This represents a tremendous accomplishment in the current consumer environment.  Our team’s effective financial discipline is ensuring that robust sales results are translating into increased restaurant profitability, with a growth in income from operations of over 32% relative to the year-ago quarter.”

Mr. Stockinger added, “We are also very pleased that our sales momentum has continued into the third quarter, as we recently announced a consolidated comparable sales increase of 7.4%, led by a 9.8% increase at our Benihana Teppanyaki restaurants, for the first four-week period of our twelve-week third quarter.  Against this positive backdrop, having delivered twenty-two consecutive four-week periods of profitable sales growth, we are now well positioned to pursue new unit growth and are actively working to identify sites for the future development of Benihana and RA Sushi restaurants.”

Fiscal Second Quarter 2012 Financial Results

Net income for the second quarter of fiscal 2012 was $0.8 million, or $0.05 per diluted share, compared to a net loss of $3.3 million, or $0.21 per diluted share, in the same quarter of the prior year.  Restaurant segment income from operations increased 32.0% to $6.2 million for the second quarter of fiscal 2012 from $4.7 million in the same quarter of the prior year.

Excluding stock-based compensation expenses and certain non-recurring general and administrative expenses in both years, income from operations for the second quarter of fiscal 2012 was $2.0 million, compared to a loss from operations of $0.1 million in the same quarter of the prior year.

For the fiscal second quarter of 2012, total revenues increased 5.6% to $76.2 million from $72.2 million in the same prior year quarter, primarily driven by a 5.6% increase in total restaurant sales.

Company-wide comparable restaurant sales increased 6.4% during the quarter, including increases of 7.7% at Benihana Teppanyaki restaurants, 5.3% at RA Sushi, and 0.6% at Haru.  This represented the seventh consecutive quarter of company-wide comparable sales increases.  All eight Haru units suffered reduced operating hours or complete closure for one or more days due to the severe weather associated with Hurricane Irene.  Comparable sales for Haru, excluding impacted days in both years, increased 2.0%.  Benihana Teppanyaki and RA Sushi were not significantly impacted by the severe weather.

During the quarter, Benihana Teppanyaki represented approximately 67% of consolidated restaurant sales, while RA Sushi and Haru accounted for 24% and 9%, respectively.  There were a total of 1,147 store-operating weeks in the fiscal second quarter of 2012 compared to 1,160 in the same prior year quarter.

Cost of food and beverage sales for the fiscal second quarter of 2012 totaled $19.2 million, or 25.3% of restaurant sales, compared to $17.5 million, or 24.4% of restaurant sales, in the fiscal second quarter of 2011.  The increase as a percentage of restaurant sales resulted from escalating commodity costs that more than offset certain menu pricing increases and shallowing of discounts taken at the beginning of the current fiscal year.

Restaurant operating expenses for the fiscal second quarter of 2012 increased $1.3 million, but decreased 1.9% as a percentage of restaurant sales, compared to the same prior year period.  The decrease as a percentage of restaurant sales was due to improved labor efficiencies, primarily related to overtime management, fixed cost leverage on higher sales volumes, and reduced depreciation (primarily due to certain prior year retirements), partially offset by increased occupancy costs.

General and administrative expenses for the fiscal second quarter of 2012 totaled $6.7 million, compared to $10.5 million for the same period in the prior year.  The current year quarter included $0.7 million of non-recurring expenses related to the special shareholders’ meetings and $0.4 million of stock-based compensation expenses.  The prior year quarter included $3.9 million of non-recurring expenses consisting of: $1.4 million related to various financial and operational consulting agreements; $1.1 million of depreciation related to the transition away from the ERP system in connection with the outsourcing of our accounting and payroll functions; $0.9 million of costs incurred to respond to and ultimately settle the proxy contest in connection with our 2010 Annual Shareholders’ Meeting; $0.3 million of costs incurred in conjunction with the execution of our accounting and payroll function outsourcing agreement; and $0.2 million for the write-off of abandoned projects.  The prior year quarter also included $0.1 million of stock-based compensation expenses.

Recurring general and administrative expenses were $5.5 million for the fiscal second quarter of 2012, a decrease of $0.9 million or 1.6% when expressed as a percentage of total revenues, compared to the same prior year quarter.

Income from operations improved to $0.9 million for the fiscal second quarter of 2012 from a loss of $4.0 million for the same period in the prior year.  Interest expense was slightly higher at $0.1 million for the current year quarter, compared to a credit of $0.1 million for the prior year quarter, as a result of the reversal of interest previously accrued in connection with certain litigation in which we subsequently prevailed.

The income tax benefit was $0.1 million for the fiscal second quarter of 2012 (an effective rate of negative 14.3%), compared to $0.9 million for the same period in the prior year (an effective rate of 22.7%).  The effective rate is impacted by the amount of tax credits relative to taxable income.

Net income for the fiscal second quarter of 2012 was $0.8 million, or $0.05 per diluted share, compared to a net loss of $3.3 million, or $0.21 per diluted share, for the same period in the prior year.  Additionally, net income reflected a 9.3% increase in the diluted share count in the current year period.

Net income for the seven periods comprising the first two fiscal quarters of 2012 was $2.4 million, or $0.15 per diluted share, compared to a net loss of $2.0 million, or $0.13 per diluted share, for the same period in the prior year.

Capital expenditures were $3.9 million for the first two fiscal quarters of 2012, compared to $3.5 million for the same period in the prior year.  We expect full-year capital expenditures to be approximately $14.6 million as we complete the significant remodeling of certain units during the second half of the fiscal year.

As previously announced, the Company has extended its fixed-price beef procurement contract through December 2012.  Beef prices were previously locked in through April 2012, and the extension provides for slightly lower weighted-average pricing throughout the remaining contract period.  The Company now has over 55% of its market basket of non-beverage commodities subject to fixed-price contract arrangements through at least April 2012, with beef being the single largest commodity exposure at approximately 22% of non-beverage food cost.

Headquartered in Miami, Benihana Inc. is the nation’s leading operator of Japanese theme and sushi restaurants with 96 Company-owned restaurants nationwide, including 63 Benihana restaurants, 25 RA Sushi restaurants and eight Haru restaurants.  In addition, 18 franchised Benihana restaurants are operating in the United States, Latin America and the Caribbean.

Benihana Announces November Chef's Special

Benihana has announced the November Chef’s Special, Hibachi Steak & Chicken for Two, a five-course feast for only $45 and Hibachi Tuna Steak for One, five courses for just $21.75.

Escape the chilly days of late fall with a visit to Benihana with friends and family. Throughout the month, two guests can enjoy this Benihana teppanyaki treat of hibachi steak and chicken grilled with mushrooms and sesame seeds, Benihana onion soup, Benihana salad, hibachi shrimp appetizer, mushrooms, hibachi vegetables, homemade dipping sauces, steamed rice and Japanese hot green tea, a five-course meal for just $45 (tax and gratuity excluded). Another option this month is the sesame crusted hibachi tuna steak special for one, paired with tomato, avocado and edamame in a white balsamic sauce, Benihana onion soup, Benihana salad, hibachi shrimp appetizer, homemade dipping sauces, steamed rice and Japanese hot green tea, a five-course meal for only $21.75 (tax and gratuity excluded).

Enjoy either of the November Chef’s Specials with one of Benihana’s specialty drinks such as the Golden Plum Daiquiri or Spiced Cranberry Mojito. Or, try either special with a wine pairing – the Hibachi Steak & Chicken for Two with a glass of Don Miguel Gascon Malbec and the Hibachi Tuna Steak for One with a glass of Santa Margherita Pinot Grigio.

Both Chef’s Specials are available throughout the entire month of November. The Hibachi Steak & Chicken for Two will be offered at all Benihana restaurants in the United States with the exception of New York City, Little Rock and Hawaii. The Hibachi Tuna Steak for One will also be available at all Benihana restaurants other than Salt Lake City, New York City, Little Rock and Hawaii.