US - US meat processor and restaurant business Bob Evans Farms, has recorded a net loss of $1.0 million, or $0.04 per diluted share, for the first quarter of the financial year compared with net income of $8.4 million, or $0.30 per diluted share, in the comparable period last year.
On an adjusted basis, net income was $2.3 million, or $0.10 per diluted share compared with net income of $15.2 million, or $0.54 per diluted share, in the same period last year.
Chairman and Chief Executive Officer Steve Davis (pictured) said: “Several years ago our board and management team determined that comprehensive strategic investments in our businesses were necessary to meet the changing expectations of consumers.
“These investments required new processes, new skill sets, and difficult decisions along the way. During the transformation process, the company not only invested more than $800 million transforming its businesses, it also returned over $800 million to stockholders from fiscal year 2007 to fiscal year 2014 through share repurchases and dividends.”
“We are seeing early positive results as we begin leveraging our strategic investments.
“At Bob Evans Restaurants, the Farm Fresh Refresh remodelling program has set the stage for new off-premise layers such as carryout and catering, which grew 2.6 percent and 13.7 percent, respectively during the quarter.
“The remodelled restaurants also support menu innovations like our new Broasted Chicken platform which provides both on- and off-premise sales growth opportunities.
“Sustained success in the restaurant industry requires a strong asset and strong product offering.
“One without the other is ultimately a losing proposition. With the Farm Fresh Refresh Program complete, we now have the right asset in place.”
Mr Davis added: “At BEF Foods, our plant network has been simplified as we have reduced the number of production facilities we operate from nine in 2007 to four today.
“Furthermore, the four remaining plants have each benefitted from substantial capital investments to expand their capacity and efficiency.
“With significant recent product authorisations at our largest existing customer, as well as at new customer accounts, the plant capacity and anticipated efficiency gains are vitally important as we expect our refrigerated side dishes to have a strong holiday sales season this year.
“Although sow costs remain challenging, BEF Foods is now in a position to continue its diversification beyond sausage products as it grows refrigerated side dish sales and other products not impacted by sow costs, while also maximising sausage product margins through a more efficient two-plant fresh sausage network, and more effective pricing and promotion strategies.”
TheMeatSite News Desk