Kona Grill, Inc., an American grill and sushi bar, reported financial results for the first quarter ended March 31, 2011.
First Quarter 2011 Highlights
- Restaurant sales increased 12.3% to $23.6 million
- Same-store sales increased 7.6%
- Restaurant operating profit margin increased to 14.0%
“We’ve continued the sales momentum reported at the end of the year with a 7.6% increase in same-store sales in the first quarter,” said Marc Buehler, President and Chief Executive Officer of Kona Grill. “We continue to enjoy positive results from the various marketing and menu improvement initiatives implemented over the past year.
“Although we continue to be impacted by higher commodity costs, we have been able to leverage top-line sales to drive improved restaurant operating margins. The quarter’s results further support our forecast for achieving profitability in 2011.”
First Quarter 2011 Financial Results
Restaurant sales increased 12.3% to $23.6 million from $21.1 million in the same year-ago quarter. The improvement reflects a 7.6% increase in same-store sales driven by strong traffic and higher average guest check, as well as additional revenue from the Kona Grill in Baltimore, Maryland that opened during the fourth quarter of 2010. The 7.6% increase in same-store sales compares to a 6.4% increase in the prior quarter and a 2.5% decrease in the first quarter of 2010.
Average weekly sales for the 22 restaurants in the comparable base were $73,240 during the first quarter of 2011, compared to $68,050 in the same year-ago period. Average weekly sales for restaurants not in the comparable base were $70,340 during the first quarter of 2011, versus $60,650 in the same year-ago period.
Net loss for the first quarter of 2011 was $0.1 million or $0.01 per share, an improvement from a net loss of $0.9 million or $0.10 per share during the first quarter of 2010.
Financial Guidance
For the second quarter of 2011, the Company forecasts restaurant sales of $24.0 million to $25.0 million, and net income of $0.2 million to $0.4 million, or $0.02 to $0.04 per share.
Kona Grill features American favorites with an international influence and award-winning sushi in a casually elegant atmosphere. Kona Grill owns and operates 25 restaurants, guided by a passion for quality food and personal service. Restaurants are currently located in 16 states: Arizona (Chandler, Gilbert, Phoenix, Scottsdale); Colorado (Denver); Connecticut (Stamford); Florida (Tampa, West Palm Beach); Illinois (Lincolnshire, Oak Brook); Indiana (Carmel); Louisiana (Baton Rouge); Maryland (Baltimore); Michigan (Troy); Minnesota (Eden Prairie); Missouri (Kansas City); Nebraska (Omaha); New Jersey (Woodbridge); Nevada (Las Vegas); Texas (Austin, Dallas, Houston, San Antonio, Sugar Land); Virginia (Richmond).