Prime Restaurants Inc. Announces Significant Sales Growth in Second Quarter 2010
PRI generated a significant increase in SSSG in the second quarter and first half of 2010 as the Company's proven sales and marketing programs successfully capitalized on the slowly improving Canadian economy and resurgence in consumer sentiment. Same store sales for the 13 weeks ended July 4, 2010 increased by 6.8% compared to negative same store sales of (8.2%) for the same period last year. For the 26 weeks ended July 4, 2010 same store sales were up 4.0% compared to a decline of (6.7%) for the same period last year.
All of the Company's brands posted positive SSSG in the quarter, with East Side Mario's leading the way with impressive SSSG of 8.6%, while Prime pubs posted SSSG of 4.5% and Casey's had 3.7% SSSG. For the 26 weeks ended July 4, 2010, East Side Mario's posted SSSG of 4.7%, while Casey's and the pubs posted SSSG of 2.8% and 3.8% respectively. All of PRI's geographic regions in Canada posted positive SSSG, with Ontario up 6.6%, Quebec rising 5.6%, Atlantic Canada up 8.4% and Western Canada, a region in which PRI previously had experienced challenges, posting strong SSSG of 8.7%. For the first 26 weeks of 2010, Ontario generated SSSG of 3.4%, Quebec was up 7.1%, Atlantic Canada 6.9% and Western Canada rose 3.1%. There were 154 restaurant and pub locations on July 4, 2010.
"We are very pleased with our strong growth this year as our proven business model and our commitment to delivering value and an exceptional guest experience, continue to drive increased guest-traffic and higher average checks," commented John Rothschild, Chief Executive Officer of PRI. "Looking ahead, we are cautiously optimistic this trend of improved SSSG will continue as the Canadian economy strengthens and our guests increasingly return to the unique experience offered by each of our Brands."
During the 13 weeks ended July 4, 2010, PRI opened one new East Side Mario's restaurant in British Columbia, and closed one East Side Mario's location in Alberta. Additionally, one East Side Mario's restaurant and one Casey's restaurant were renovated during that period, with sales cumulatively rising 15.2% at these locations from their pre-renovation sales levels.
Effective April 5, 2010 the Fund was reorganized into a public corporation named Prime Restaurants Inc. The new corporate structure includes the combination of the businesses of Prime Restaurants of Canada Inc. ("PRC"), the Fund and PRC Trademarks Inc. ("TradeMarkCo"). The Fund was dissolved and unitholders and limited voting unitholders of the Fund received, for each unit and limited voting unit of the Fund, one class A limited voting share ("Class A Limited Voting Shares") of PRI.