Bob Evans Q4 Sales Down 2%; Swings To Net Loss
Bob Evans Farms (NASDAQ: BOBE) swung to a fiscal fourth-quarter loss on lower sales and said separately Tuesday that four directors put forward by dissident shareholder Sandell Asset Management were elected to its board.
Sandell waged a proxy battle and has pushed for Bob Evans to sell its packaged food business and sell its real estate. Eight incumbent directors were re-elected.
Chief Executive Steve A. Davis said $800 million invested by the company in its business in recent quarters is "showing early positive results."
Same-store sales fell two percent while total sales dropped 0.9 percent in the recent period.
But Davis said carryout grew 2.6 percent in the quarter while catering increased 13.7 percent. New menu items including Sweet & Stacked Hotcakes and Broasted Chicken will "result in an improved sales trajectory," Davis added.
Bob Evans Restaurants' net sales were $240.2 million, down 1.8 percent from $244.6 million a year ago. Adjusted operating income fell to $5.5 million, from $16 million last year.
BEF Foods' net sales grew 1.5 percent to $86.2 million from $84.9 million a year ago. The unit posted an adjusted operating loss of $400,000 compared with $6.7 million a year earlier.
The company posted a total loss of $1 million, or $0.04 a share, versus income $8.4 million, or $0.30 a share a year earlier. Adjusted income was $0.10 a share.
Total sales of $326.3 million compared with $329.5 a year earlier.
Wall Street expected earnings of $0.10 a share, on revenue of $328.6 million.
Bob Evans re-affirmed an earlier forecast for 2015 earnings of $1.90 to $2.20 a share, in line with Wall Street's views.
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