McCormick & Schmick's sees 2Q revenue drop
McCormick & Schmick's Seafood Restaurants on Tuesday reported its financial results for the second quarter of 2010, including a decline in revenues by 3.2 percent to USD 89.7 million (EUR 67.8 million) from USD 92.7 million (EUR 70 million) during the same period last year.
The decrease was primarily due to a 4.6 percent decrease in restaurant traffic.
However, the Portland, Ore., company also reported an increase in net income by 8.1 percent to USD 1.3 million (EUR 983,000), up from USD 1.2 million (EUR 907,500) in 2009.
As a result of the potential impact of the Gulf of Mexico oil spill, the company said it revised its annual revenue guidance for the year to between USD 345 million (EUR 261 million) and USD 355 million (EUR 268 million), compared to previous predictions of USD 355 million (EUR 268 million) to USD 365 million (EUR 276 million).
"Despite continued economic and unexpected environmental challenges, we were pleased with continued improvement in traffic and sales trends as well as our net income growth," said McCormick CEO Bill Freeman. "Our guests are responding favorably to our long-term strategic initiatives designed to drive traffic. As we look forward, although we are concerned with both the economic outlook and publicity centered around the Gulf oil spill and its potential effect on seafood consumption and commodity pricing, we will stay focused on superior execution at the restaurant level and the continued evolution of our concept. We are confident that we can further connect with our current guests and broaden our appeal to a wider audience."