Benihana reports restaurant operating profit increases 20.2 percent

Benihana Inc., Miami, reported today that its third quarter restaurant operating profit increased 20.2 percent over last year's third quarter to $8.7 million. Gross profit (restaurant sales less cost of food and beverage sales) increased 9.9 percent, to $37.9 million, from $34.5 million a year ago, and gained approximately 5 percent sequentially, compared to $36.1 million in the preceding second fiscal quarter. "We were very pleased with the restaurant operating performance in the fiscal third quarter," said Joel A. Schwartz, president and CEO, in a statement. "Comparable store sales gains were strong, with each of our restaurant concepts contributing to the improvement. Restaurant operating expenses as a percent of restaurant sales improved, reflecting our continuing efforts to reduce costs as well as lower commodity prices. A 2-3 percent increase in prices at the teppanyaki restaurants effected earlier in the fiscal year benefited results and also had no impact on consumer traffic, which actually increased. With several restaurants expected soon to open or reopen, as well as those under development, we look forward to continued growth. Unfortunately, results for the quarter were adversely impacted by the costs of defending the litigation brought by Benihana of Tokyo Inc."