Fogo de Chao (FOGO) is an Olympic Restaurant Metric

Destiny A. Lopez  |

Today, Fogo de Chao (FOGO), although reporting a two-percent growth in Q2 2016 when compared to Q2 2015 in their latest financial report, the Brazilian steak house, according to Seeking Alpha, missed their revenue mark, by $3.76 million. The next quarter will be tell tale about how much traction the Brazilian Steakhouse brand was able to get traction on the back of the Summer Olympic Games. Not sure if you have dined in one of the restaurants, but they are fantastic !!

With Larry Johnson, CEO of Fogo de Chao, having hosted a conference call regarding the results, highlights from the report include:

  • Company owned restaurant sales decrease of 1.6%.
  • Adjusted net income totaling $6.3 million, or $0.22 per diluted share.
  • GAAP net income totaled $6.2 million, an increase compared to Q2 2015’s total of $2.5 million.

Furthermore, within Q2 2016, the opened the first Fogo de Chao in Jeddah, Saudi Arabia thanks to a partnership with Enany Group, along with completing construction on its suburban Philadelphia Fogo location.

“We continue to drive positive traffic in the US this quarter, up 0.6%, and our traffic outpaced our peers by 310 and 150 basis points as reported on the Knapp Track High End Steakhouses and Blackbox Upscale/Fine Dining group indexes,” said Johnson. “In today’s softening sales environment, guests are placing greater emphasis on value, customization, variety and speed of service and we believe that our strategies are designed to deliver on these needs.”

Headquartered in Dallas, Texas, Fogo de Chao’s full-service Brazilian restaurants are located throughout the United States, in Brazil, and one joint venture in Mexico. Fogo has made a name for itself on the dining scene thanks to its offerings of beef, lamb, chicken, pork, and seafood.

Although the company continues to report positive fundamental metrics, Zacks Investment News commented not just on the company’s declining trend since going public, but how the restaurant market may be due for a pullback.

Despite the market’s rocky terrain, the company continues to further their brand recognition Announced in late July, Fogo de Chao is scheduled to open five new restaurants, with three new U.S. locations on the roster. “We continue to see great demand for the unique experience and value created at Fogo de Chão, both across the U.S. and around the world,” said Johnson. “These new domestic locations and international joint venture partnerships are perfectly aligned with our strategic vision and growth plans. We look forward to celebrating their openings, and to continuing to build on our strong development pipeline.”

As reported by Zacks, there is still hope for improvement. “Investors are undoubtedly hoping for an Olympic boost from this name next quarter,” stated Zacks, “so guidance could be key here.”

The investment community looks forward to further developments from the company.

To learn more about Fogo de Chao, visit

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