McCormick & Schmick's Reports Fiscal 2007 Results
McCormick & Schmick's Seafood Restaurants today reported that its revenues increased to $358.6 in fiscal 2007 from $308.3 million in fiscal 2006. However, the Portland, Ore., company's and net income decreased 34 percent, to $8.8 million in fiscal 2007, which ended Dec. 29.
Among the highlights for the fourth quarter of 2007 compared to 2006 included increased revenues to $99.5 million from $84.3 million. However, restaurant sales decreased 1.4 percent and the company suffered an operating loss of $2.7 million in the fourth quarter of 2007 compared to operating income of $6.7 million in 2006. The company also reported a net loss of $1 million in the fourth quarter of 2007 compared to net income of $4.8 million in 2006.
"Our fourth quarter was a challenging period for McCormick & Schmick's, with the decline in comparable sales causing margin deterioration," said McCormick & Schmick's CEO Douglas Schmick in a prepared statement. "Because of the current business environment we have decided to take a conservative approach to our 2008 guidance, but we will revisit these expectations as the environment changes."
The growth is primarily attributable to revenues generated by restaurants not included in the comparable restaurant base, coupled with the addition of The Boathouse restaurants acquired in March 2007. The company added a total of 17 restaurants, including The Boathouse restaurants, last year.
McCormick's intends to open three restaurants in the first quarter of 2008, in Anaheim, Calif., Cherry Hill, N.J., and Milwaukee. and a total of twelve new restaurants in fiscal year. The company projects its fiscal 2008 revenues to total between $410 million and $420 million and its restaurant sales to decrease 2 percent to 4 percent.