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Bob Evan raises forecast, announces acquisition
The Associated PressCOLUMBUS, Ohio -- Bob Evans Farms Inc. said Tuesday that sales picked up at its namesake restaurant chain and foods business during its fiscal first quarter and it raised its full-year forecast. The Columbus, Ohio-based company also announced that it has acquired Kettle Creations for $50 million in cash to expand its high-growth side-dish business.
The company operates the Bob Evans and Mimi's Cafe restaurant chains and sells sausage and other food under the Bob Evans and Owens brand names
Bob Evans earned $15 million, or 53 cents per share, for the quarter that ended July 27. That compares with $17.8 million, or 59 cents per share, in the same quarter last year. After adjusting for severance charges, acquisition costs and other special items, it earned 58 cents per share.
Total revenue rose to $409.7 million from $405.4 million. That was driven by improved sales at its Bob Evans Foods business. Revenue from restaurants open at least a year increased 1 percent at its namesake chain and fell 3.3 percent at its Mimi's chain. That's a key indicator of financial performance because it strips away the impact of recently opened or closed stores.
Analysts polled by FactSet expected the company to earn 60 cents per share on revenue of $410.7 million.
Bob Evans is working to refresh the look of many of its locations to draw more customers. It also acquired Lima, Ohio-based Kettle Creations just after the close of the first quarter to grow its other foods business. The company has been one of its suppliers of potato and macaroni and cheese products for the past three years. The deal is expected to slightly add to earnings in the 2013 fiscal year.
The company also raised its full-year forecast. It expects to earn $2.67 to $2.73 per share for its 2013 fiscal year, up a penny from its prior estimate. It also forecast total sales of roughly $1.7 billion. Analysts had forecast earnings of $2.66 per share on revenue of $1.68 billion.
Bob Evans also will increase its quarterly dividend by 10 percent, to 27.5 cents per share. The dividend will be paid Sept. 17 to shareholders of record as of Sept. 4.
Shares increased 13 cents to close at $38.71 on Tuesday.
