Fogo De Chao Beats Q2 Estimates

reported better-than-expected earnings for the second quarter on Tuesday. The Dallas, Texas-based company posted quarterly earnings of $2.5 million, or $0.10 per share, compared to $3.7 million, or $0.16 per share, in the year-ago quarter. On an adjusted basis, the company's earnings came in at $$0.25 per share. Its revenue slipped to $68.2 million from $68.5 million, while revenue on a World Cup and constant currency adjusted basis climbed 11 percent. Analysts were expecting earnings of $0.22 per share on revenue of $65.26 million. U.S. company-owned comparable restaurant sales climbed 4.2 percent for the quarter. U.S. restaurant revenue gained 11.6 percent to $56.1 million in the quarter, while Brazil restaurant revenue slipped 33.8 percent to $12.1 million. Adjusted EBITDA gained 9.1 percent to $15.6 million. "We are pleased with our strong second quarter results, particularly our comparable restaurant sales growth in the U.S. of 4.2%, and the strength of our development pipeline," said Larry Johnson, Chief Executive Officer of Fogo de Chao, Inc. "Total sales growth was 11.0% for the quarter when you adjust for foreign currency and lapping the 2014 World Cup in Brazil. We continue to make progress on our 2015 development plan, opening a second location in Rio de Janeiro, near the 2016 Summer Olympics venue, and our first joint venture location in the high-end Polanco area in Mexico City." For 2015, Fogo De Chao expects total revenue of $273.0 million and company-owned comparable restaurant sales to rise 1 percent to 2 percent. Fogo De Chao shares closed up 2.30 percent at $20.00 in regular trading hours.