Bob Evans income up but misses expectations in 3Q

[February 10, 2010]  COLUMBUS, Ohio (AP) -- Restaurant operator Bob Evans Farms Inc. late Tuesday reported that it moved to a profit in its third quarter, but results missed Wall Street's expectations and sent shares down in after-hours trading.

The company said it earned $17.9 million, or 58 cents per share, in the quarter that ended Jan. 22. That's after from a loss of $51.4 million, or $1.67 per share, in the same quarter last year, which included about $75 million in charges to write down the value of its Mimi's Cafe chain.

Revenue fell 3 percent to $429.8 million.

Analysts polled by Thomson Reuters expected the company to earn 60 cents per share on revenue of $438.1 million.

Bob Evans CEO Steve Davis said the results reflect the tough economy and severe weather in some of its key markets as well as higher promotional activity.

The company says sales at its restaurants open at least a year fall nearly 6 percent. Sales at established stores are considered a key indicator as they strip away the impact of new restaurant openings.

While sales at established restaurants were down, the company said it raised productivity and cut costs to help its profit margin.

Shares of Bob Evans fell 78 cents, nearly 3 percent, to $27.00 in after-hours trading Tuesday.

[Associated Press]

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