Clearwater, FL - Checkers Drive-In Restaurants, Inc. announced a net loss of $3.8 million, or $.05 per share for its fourth quarter, and $12.9 million, or $.20 per share for the year, both ending on December 29, 1997. Revenues totaled $43.3 million for the fourth quarter and $143.9 million for the year, which compares to 1996 revenues of $50.8 million and $165.0 million, respectively.
Both the quarter and annual results are significant improvements over the Company's prior year losses for the same periods of $20.4 million or $.40 per share and $46.4 million or $.90 per share, respectively. Prior year results were impacted by significant accounting charges and loss provisions of $12.8 million for the quarter and $29.6 million for the year.
Jay Gillespie, chief executive officer commented, "We are pleased to have achieved the goal we disclosed at the beginning of the year, which was the improvement in restaurant margins. Gross margins at the restaurants improved 7.5% of sales in fiscal 1997 over fiscal 1996. These improvements brought over $10.2 million in increased cash flow. Additionally, diligent financial management brought reductions in corporate costs and interest expense. Results for fiscal 1997 were the best we have achieved on a pretax basis since fiscal 1994. We recognize, however, that we cannot be satisfied until we show bottom line profits on a consistent basis."
Mr. Gillespie continued, "In 1998, a primary focus will be the improvement of comparable company operated restaurant sales, which for the year ended December 29, 1997 decreased 9.7% as compared to the prior year. Our new marketing agency brought on board during the fourth quarter of fiscal 1997, has created a 'fresh because we just made it' campaign that describes Checkers' promise to customers that their burgers are always assembled fresh on the spot, not pre-made like many other quick service restaurants. This strategy is a key part of our plan for improving same store sales."
The Checkers system opened 25 new restaurants in fiscal 1997, 1 of which was company owned, and closed 25 restaurants, 7 of which were company owned. Sales volumes to date at the new restaurants are significantly higher than average unit volumes of existing restaurants. Checkers Drive-In Restaurants, Inc., along with its franchisees, operates approximately 479 double drive-thru hamburger restaurants primarily located in the Southeast.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Web Site: http://www.spcnetwork.com/mii