Bob Evans Farms, Inc.
Feb 14, 2012

Bob Evans Reports Fiscal 2012 Third-Quarter Results

Company announces 3Q 2012 earnings of 69 cents per diluted share compared with 51 cents per diluted share last year, a 35% increase
Operating income up 19%, and net income up 31%, on improving sales trends, and ongoing success with cost initiatives
Company raises lower end of fiscal year 2012 EPS guidance from $2.36 to $2.38, and reaffirms top end of $2.44. Also reaffirms average annual earnings per share growth guidance of approximately 7 to 10 percent over next five years
Bob Evans Restaurants reports positive same-store sales of 1.6% for the quarter. Mimi's Café reports continued sequential same-store sales improvement. Both brands driving sales through sales layer innovation and effective marketing and promotional programs
Accelerated stock buyback executed with $18.8 million purchased during third-quarter fiscal 2012

COLUMBUS, Ohio, February 14, 2012-- Bob Evans Farms, Inc. (NASDAQ: BOBE) today announced its results for the 2012 third fiscal quarter ended Friday, Jan. 27, 2012.

Third-quarter fiscal 2012 commentary

Chairman and Chief Executive Officer Steve Davis said the Company’s third-quarter operating results reflect continued momentum across all three of the Company’s brands. Bob Evans Restaurants reported positive same-store sales for the quarter; and Mimi’s same-store sale results, while still negative, improved sequentially. The foods segment delivered a modest sales and volume increase, along with market share increases in both its sausage and side dish businesses. Davis noted, “Improving sales trends, as well as continued success with innovative cost initiatives across the enterprise, are driving operating profit favorability. Despite an approximately $4 million cost of sales increase in the foods segment driven by increased sow costs and other commodities, our diversified-integrated growth model offset the impact, and delivered a solid quarter.”

Davis stated, “The improving top-line and bottom-line trends emerging in each of our businesses indicate further progress with the transformation of our core businesses in order to enable expansion. While challenges remain, we are confident we are on the right track. With that in mind, we are raising the lower end of our fiscal year 2012 EPS guidance from $2.36 to $2.38, and reaffirming the upper end of $2.44.”

“The positive trends we are seeing give us the confidence that investments such as the Farm-Fresh Refresh initiative at Bob Evans Restaurants, marketing initiatives and sales layer development at Mimi’s, and distribution and productivity projects in the foods business, are the right ones to create value for our shareholders. We have the resources and programs in place to deliver on our long-term annual EPS growth guidance of 7 to 10 percent.”

Third-quarter fiscal 2012 consolidated results

The Company reported diluted earnings per share of 69 cents and consolidated operating income of $30.3 million, or 7.1 percent of net sales, in the third quarter of fiscal 2012. This compares to diluted earnings per share of 51 cents and consolidated operating income of $25.4 million, or 5.9 percent of net sales, last year.

Third-quarter fiscal 2012 consolidated income statement summary

Below is a summary of the Company’s third-quarter fiscal 2012 income statement.

 

Third-quarter fiscal 2012 restaurant segment summary

The restaurant segment reported third quarter fiscal 2012 operating income of $23.1 million, or 6.9 percent of net sales, compared with $14.7 million, or 4.4 percent of net sales, last year.

A summary of the restaurant segment’s third-quarter fiscal 2012 income statement follows below:

Net sales – The restaurant segment reported net sales of $337.3 million, virtually flat compared to $337.7 million in the third quarter of fiscal 2011. This was achieved with five fewer Bob Evans Restaurants locations compared to last year. Same-store sales at Bob Evans Restaurants increased 1.6 percent in the third quarter of fiscal 2012, with a combined pricing and menu mix impact of 2.0 percent. We estimate favorable weather and roll-over of last year’s promotional gift card program each accounted for nearly 50 basis points of the same-store sales result for the quarter. Last year’s gift card program included a higher promotional component which negatively impacted net sales to a greater extent than the current year program. At Mimi’s Café, same-store sales decreased 3.4 percent, with a combined pricing and menu mix impact of 4.1 percent.

At Bob Evans Restaurants, third-quarter same-store sales results of 1.6 percent exceeded the Midscale Family Style segment, according to The NPD Group’s SalesTrack Weekly. At Mimi’s Café, same-store sales of -3.4 percent trailed the Knapp Track™ casual dining index of 2.3 percent for the same period. Excluding the effect of last year’s snow events, Bob Evans Restaurants same-store sales were driven by successful off-premise initiatives. Mimi’s improvement was driven by growth in off-premise and alcohol sales as well as by improved guest retention as guest satisfaction metrics reached new highs.

 

 

 

Category

SSS Restaurants

Nov.

Dec.

Jan.

3Q FY ’12

FY ’12 YTD

Bob Evans

Family

555

0.1%

2.4%

2.3%

1.6%

-0.6%

Mimi’s Café

Casual

143

-4.0%

-3.0%

-3.3%

-3.4%

-4.3%

COMBINED

 

698

-1.0%

0.7%

0.7%

0.1%

-1.6%

Cost of sales – The restaurant segment’s cost of sales was 25.0 percent of net sales, down from 25.4 percent of net sales in fiscal 2011. The cost as a percentage of sales decreased at both restaurant brands due to the restaurant segment’s ongoing efficiency initiatives including the actual-versus-theoretical food cost program.

Operating wages – The restaurant segment’s cost of labor was 37.5 percent of net sales compared to 39.3 percent of net sales in the third quarter of fiscal 2011. This decrease was the result of sales leverage at Bob Evans, along with more efficient use of labor, and lower health insurance costs. Mimi’s cost of labor also declined as a percentage of sales for the same reasons despite sales deleverage.

Other operatingexpenses – The restaurant segment’s other operating expenses were nearly flat on a dollar basis compared to the third quarter of fiscal 2011. Other operating expenses were 19.1 percent of net sales in both the current and prior year periods. Pre-opening expenses for Bob Evans Restaurants’ Farm-Fresh Refresh program and new restaurant openings were approximately flat year over year.

SG&A – The restaurant segment’s selling, general and administrative expenses were $20.9 million, or 6.2 percent of net sales, compared to $21.7 million, or 6.4 percent of net sales, in the third quarter of fiscal 2011. The dollar decrease was driven by reduced long-term incentive compensation, lower performance-based 401k spending, and general cost controls.

Third-quarter fiscal 2012 foods segment summary

The foods segment reported third quarter fiscal 2012 operating income of $7.1 million, or 7.9 percent of net sales, compared with $10.7 million, or 11.8 percent of net sales, last year.

A summary of the foods segment’s third-quarter income statement follows below:

Net sales – The foods segment's net sales were $91.0 million, up 0.1 percent, compared to $90.9 million in the third quarter of fiscal 2011. Total pounds sold increased 0.9 percent compared to the third quarter of the fiscal 2011. Both the sausage and side dish categories gained market share during the period, and three new frozen burrito products targeted at consumers seeking healthy and innovative breakfast alternatives were introduced in January. Furthermore, our Loaded and Oven Bake Potatoes gained authorizations at 1,400 stores during the quarter.

Cost of sales – The foods segment’s cost of sales was 58.7 percent of net sales compared to 54.3 percent of net sales in the third quarter of fiscal 2011. The increase was primarily the result of the approximately $4.0 million adverse impact of higher commodity costs, including a $2.7 million effect of higher sow costs, as well as other commodities, primarily potatoes. Sow costs averaged in the low $60’s per hundredweight in the third quarter of fiscal 2012, compared to the low $50’s during the third quarter of fiscal 2011.

Operating wages – The foods segment’s c ost of labor was 7.8 percent of net sales compared to 9.3 percent of net sales in the third quarter of fiscal 2011. The decrease was due to further efficiencies resulting from the Company’s ongoing manufacturing productivity initiatives as well the outsourcing of distribution services to a third party, resulting from the sale of a Company-owned distribution facility last quarter. This cost has been reclassified to other operating expenses.

Other operatingexpenses – The foods segment’s other operating expenses were $5.2 million, or 5.7 percent of net sales, compared to $4.0 million, or 4.4 percent of net sales, in the third quarter of fiscal 2011. The increase was due largely to fees associated with the distribution services agreement mentioned previously. The majority of these fees were previously classified as operating wages prior to the sale of a distribution facility last quarter.

SG&A – The foods segment’s SG&A expenses were $15.8 million, or 17.3 percent of net sales, compared to $15.8 million, or 17.4 percent of net sales, in the third quarter of fiscal 2011. Higher transportation and marketing research fees in the current year were offset by a reduction in consulting expenses from the prior year related to the segment’s manufacturing productivity initiatives.

Fiscal year 2012 and longer-term outlook

The Company raised the lower end of its fiscal 2012 guidance to $2.38 from $2.36, and reaffirmed the high end of $2.44. The company also reaffirmed its guidance for average annual earnings per share growth of approximately 7 to 10 percent over the next five years

The Company expects the challenging cost and sales environment to continue. The Company also expects to continue to incur average sow costs in the $60-$65 range for the remainder of the fiscal year.

Same-store sales growth is impacted directly by weather conditions. Therefore, significant severity and frequency of adverse weather events could result in actual restaurant segment same-stores sales performance that differs materially from the Company’s guidance.

The Company also expects an incremental $1.2 million in restaurant remodel and new restaurant pre-opening expenses, due to the higher number of planned remodels and new restaurants relative to fiscal 2011 during the fourth quarter. Year to date, the Company has recorded $1.7 million of remodel expense for its Detroit and Toledo markets and new store opening expense for the two new restaurants opened to date.

This outlook relies on a number of important assumptions, including the risk factors discussed in the Company’s securities filings. Particular assumptions for the Company’s fiscal year 2012 outlook include the following:

Consolidated company highlights

In fiscal 2012, the Company is on track to build six new Bob Evans Restaurants, rebuild three, and remodel 90.

Restaurant segment highlights

Foods segment highlights

Company to host conference call on Wednesday, February 15, 2012

The Company will host a conference call to discuss its year-end results at 10 a.m. (ET) on Wednesday, February 15, 2012. The dial-in number is (800) 690-3108, access code 47417162. A replay will be available at (855) 859-2056 or (404) 537-3406, access code 47417162. To access the simultaneous webcast, go to www.bobevans.com/ir . The archived webcast will also be available on the Web site.

About Bob Evans Farms, Inc.

Bob Evans Farms, Inc. owns and operates full-service restaurants under the Bob Evans and Mimi’s Café brand names. At the end of the third fiscal quarter (January 27, 2012), Bob Evans owned and operated 564 family restaurants in 18 states, primarily in the Midwest, mid-Atlantic and Southeast regions of the United States, while Mimi’s Café owned and operated 145 casual restaurants located in 24 states, primarily in California and other western states. Bob Evans Farms, Inc. is also a leading producer and distributor of pork sausage and a variety of complementary convenience food items under the Bob Evans and Owens brand names. For more information about Bob Evans Farms, Inc., visit www.bobevans.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements involve various important assumptions, risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events. We discuss these factors and events, along with certain other risks, uncertainties and assumptions, under the heading “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 29, 2011, and in our other filings with the Securities and Exchange Commission. We note these factors for investors as contemplated by the Private Securities Litigation Reform Act of 1995. Predicting or identifying all such risk factors is impossible. Consequently, investors should not consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date of the statement to reflect unanticipated events. All subsequent written and oral forward-looking statements attributable to us or any person acting on behalf of the company are qualified by the cautionary statements in this section.

Contact:
Scott C. Taggart
Vice President of Investor Relations
(614) 492-4954 

Disclosure regarding non-GAAP financial measures

The Company uses adjusted operating income, adjusted net income before income taxes, adjusted provision for income taxes, adjusted net income, and adjusted earnings per share as measures for comparing its performance to prior periods and competitors, and believes it is useful because it provides investors and other interested parties a means to evaluate the Company’s performance relative to its past performance, without regard to certain charges and gains. Adjusted operating income, adjusted net income before income taxes, adjusted provision for income taxes, adjusted net income, and adjusted earnings per share are not recognized GAAP terms.

 
GAAP to Non-GAAP Reconciliation of Operating Income (unaudited)
(Thousands, except per share data)
                         
   
Three Months Ended
 
Nine Months Ended
   
January 27,
2012
January 28,
2011
 
January 27,
2012
January 28,
2011  
 
Operating income as reported:
  Restaurant  $
23,111
 
$
14,728
 
$
62,321
 
$
45,287
  Foods   
7,147
 
 
10,706
 
 
16,762
 
 
15,443
     Total  
30,258
 
 
25,434
 
 
79,083
 
 
60,730
     
 
 
 
 
 
 
 
 
 
 
Adjustments:  
 
 
 
 
 
 
 
 
 
 
  Impairment – Restaurant  
 
 
 
 
 
 
2,806
 
 
10,293
  Severance – Restaurant  
 
 
 
 
 
 
287
 
 
829
  Gain on asset sale - Restaurant  
 
 
 
 
 
 
(407)
 
 
 
  Gain on sale of business - Foods  
 
 
 
 
 
 
(689)
 
 
 
  Impairment - Foods  
 
 
 
 
 
 
87
 
 
 
  Manufacturing Productivity Initiatives - Food  
 
 
 
 
 
 
 
 
 
2,773
                       
Adjusted operating income:                      
  Restaurant  
23,111
 
 
14,728
 
 
65,007
 
 
56,409
  Foods  
7,147
 
 
10,706
 
 
16,160
 
 
18,216
     Total  
30,258
 
 
25,434
 
 
81,167
 
 
74.625
   
 
 
 
 
 
 
 
 
 
 
Net interest expense
1,879
2,098
5,975
6,800
     
 
 
 
 
 
 
 
 
 
 
Income Before Income Taxes as reported  
28,379
 
 
23,336
 
 
73,108
 
 
53,930
Adjustments          
 
 
 
 
 
 
2,084
 
 
13,895
Adjusted Income Before Income Taxes  
28,379
 
 
23,336
 
 
75,192
 
 
67,825
   
 
 
 
 
 
 
 
 
 
 
 Adjustments  
 
 
 
13,895
 
 
2,084
 
 
13,985
Adjusted Income Before Income Taxes  
28,379
 
 
37,231
 
 
75,192
 
 
67,825
Provision for Income Taxes as reported  
8,124
 
 
7,870
 
 
22,294
 
 
18,125
Income Tax effect of adjustments  
 
 
 
 
 
 
660
 
 
4,658
Adjusted Provision for Income Taxes  
8,124
 
 
7,870
 
 
22,954
 
 
22,783
                       
Net Income as reported
 
20,255
 
 
15,466
 
 
50,814
 
 
35,805
Adjustments
 
 
 
 
 
 
 
1,424
 
 
9,237
Adjusted Net Income
$
20,255
 
$
15,466
 
$
52,238
 
$
45,042
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
 
 
 
 
 
 
  Basic as reported
$
0.69 
 
$
0.51
 
$
1.7
 
$
1.18
  Adjustments
 
 
 
 
         
 
$
0.05
 
$
0.3
  Adjusted Basic
$
0.69 
 
$
0.51
 
$
1.75
 
$
1.48
   
 
 
 
 
 
 
 
 
 
 
 
      Diluted as reported
$
0.69 
 
$
0.51
 
$
1.69
 
$
1.18
  Adjustments
 
 
 
 
 
 
$
0.05
 
$
0.3
  Adjusted Diluted
$
0.69 
 
$
0.51
 
$
1.74
 
$
1.48
   
 
 
 
 
 
 
 
 
 
 
 
Average Shares Outstanding
 
 
 
 
 
 
 
 
 
 
 
  Basic
 
29,319 
 
 
30,258
 
 
29,909
 
 
30,348
  Diluted
 
29,415 
 
 
30,404
 
 
29,999
 
 
30,437
Consolidated Financial Results (unaudited)
(Thousands, except per share data)
                   
   
Three Months Ended
Nine Months Ended
   
January 27,
2012
 
January 28,
2012
 
 
January 27,
2012
 
January 28,
2012
 
 
Net Sales
  Restaurant 
$
337,308
$
337,694
$
999,334
$
1,018,858
  Foods   
 
91,031
 
 
90,900
 
 
241,551
 
 
239,348
     Total  
 
428,339
 
 
428,594
 
 
1,240,885 
 
 
1,258,206
 
Operating Income
  Restaurant 
 
23,111
 
14,728
 
62,321
 
45,287
  Foods   
 
7,147
 
 
10,706
 
 
16,762
 
 
15,443
     Total  
 
30,258
 
 
25,434
 
 
79,083
 
 
60,730
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Expense
 
1,879
 
2,098
 
5,975
 
6,800
 
 
 
 
 
 
 
 
 
Income Before Income Taxes  
 
28,379
 
 
23,336
 
 
73,108
 
 
53,930
 
 
 
 
 
 
 
 
 
 Adjustments  
 
 
 
 
 
13,895
 
 
2,084
 
 
13,985
 
Adjusted Income Before Income Taxes
 
28,379
 
37,231
 
75,192
 
67,825
Provision for income taxes  
 
8,124
 
 
7,870
 
 
22,294
 
 
18,125
 
 
 
 
 
 
 
 
 
Net Income
$
20,255
$
15,466
$
50,814
$
35,805
 
 
 
 
 
 
 
 
 
Earnings Per Share
 
 
 
 
 
 
 
 
  Basic 
$
0.69
$
0.51
$
1.7
$
1.18
      Diluted
$
0.69
$
0.51
$
1.69
$
1.18
   
 
 
 
 
 
 
 
 
Average Shares Outstanding
 
 
 
 
 
 
 
 
  Basic
 
29,319
 
30,258
 
29,909
 
30,348
  Diluted
 
29,415
 
30,404
 
29,999
 
30,437

Bob Evans Farms, Inc.
Earnings Release Fact Sheet (unaudited)
Fiscal 2012 – Quarter 3

Note: amounts are in thousands, except per share amounts

Third quarter (Q3), ended January 27, 2012, compared to the corresponding period a year ago:

   
Consolidated Results
 
 
Restaurant
 
 
Foods
   
Q3 2012
 
 
% of sales
 
 
Q3 2011
 
 
% of sales
 
 
Q3 2012
 
 
Q3 2011
 
 
Q3 2012
 
 
Q3 2011
Net sales $  
428,339 
 
 
 
 
$
 
428,594 
 
 
 
 
$  
337,308 
$
 
337,694 
$
 
91,031 
$
 
90,900 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales    
137,657 
 
 
32.10%
 
 
 
135,001 
 
 
31.50%
 
25.00%
 
 
25.40%
 
 
58.70%
 
 
54.30%
Operating wages    
133,575 
 
 
31.20%
 
 
 
141,282 
 
 
33.00%
 
37.50%
 
 
39.30%
 
 
7.80%
 
 
9.30%
Other operating    
69,906 
 
 
16.30%
 
 
 
68,840 
 
 
16.10%
 
19.10%
 
 
19.10%
 
 
5.70%
 
 
4.40%
S,G&A    
36,634 
 
 
8.60%
 
 
 
37,460 
 
 
8.70%
 
6.20%
 
 
6.40%
 
 
17.30%
 
 
17.40%
Depr. & amort.    
20,309 
 
 
4.70%
 
 
 
20,577 
 
 
4.80%
 
5.30%
 
 
5.40%
 
 
2.60%
 
 
2.80%
     
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income     
30,258 
 
 
7.10%
 
 
 
25,434 
 
 
5.90%
 
6.90%
 
 
4.40%
 
 
7.90%
 
 
11.80%
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
Interest    
1,879 
 
 
0.50%
 
 
 
2,098 
 
 
0.50%
               
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
Pre-tax income    
28,379 
 
 
6.60%
 
 
 
23,336 
 
 
5.40%
               
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
Income Taxes    
8,124 
 
 
1.90%
 
 
 
7,870 
 
 
1.80%
               
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
Net Income $  
20,255 
 
 
4.70%
$
 
15,466 
 
 
3.60%
               
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
EPS - basic $
0.69 
 
 
 
 
$
0.51 
 
 
 
 
               
EPS - diluted $
0.69 
 
 
 
 
$
0.51 
 
 
 
 
               
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
Dividends paid per    
 
 
 
 
 
 
 
 
 
 
 
 
 
               
share $  
0.25 
 
 
 
 
 
$
 
0.20 
 
 
 
 
               
     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
Weighted average     
 
 
 
 
 
 
 
 
 
 
 
 
 
               
shares outstanding:    
 
 
 
 
 
 
 
 
 
 
 
 
 
               
                                 
Basic    
29,319 
 
 
 
 
 
 
 
30,258 
                   
Dilutive stock options    
96 
 
 
 
 
 
 
 
146 
                   
Diluted    
29,415 
 
 
 
 
 
 
 
30,404 
                   
     
 
 
 
 
 
 
 
 
 
                   
Shares outstanding    
 
 
 
 
 
 
 
 
 
                   
at quarter end    
29,072 
 
 
 
 
 
 
 
30,320 
                   
                                 
Income taxes, as a percentage of pre-tax income, were 28.6% vs.33.7%

Consolidated Q3 Review:

Restaurant Q3 Review:

Bob Evans Restaurants:                        
                                 
Fiscal Year
 
 
Beginning Total
 
 
Q1
 
 
Q2
 
 
Q3
 
 
Q4*
 
 
Full Year*
 
 
Closings 
 
 
Ending Total*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012 
 
 
563 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
568 
2011 
 
 
569 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
563 
2010 
 
 
570 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
569 
2009 
 
 
571 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
570 
2008 
 
 
579 
 
 
 
 
 
 
 
 
 
 
 
 
10 
 
 
571 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mimi’s Café:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year
 
 
Beginning Total
 
 
Q1
 
 
Q2
 
 
Q3
 
 
Q4*
 
 
Full Year*
 
 
Closings 
 
 
Ending Total*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012 
 
 
145 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
145 
2011 
 
 
146 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
145 
2010 
 
 
144 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
146 
2009 
 
 
132 
 
 
 
 
 
 
 
 
 
 
12 
 
 
 
 
144 
2008 
 
 
115 
 
 
 
 
 
 
 
 
 
 
17 
 
 
 
 
132 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Restaurants:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year
 
 
Beginning Total
 
 
Q1
 
 
Q2
 
 
Q3
 
 
Q4*
 
 
Full Year*
 
 
Closings 
 
 
Ending Total*
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2012 
 
 
708 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
713 
2011 
 
 
715 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
708 
2010 
 
 
714 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
715 
2009 
 
 
703 
 
 
 
 
 
 
 
 
 
 
13 
 
 
 
 
714 
2008 
 
 
694 
 
 
 
 
 
 
 
 
 
 
19 
 
 
10 
 
 
703 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Future quarters represent estimates for fiscal year 2012.

• Projected rebuilt restaurant openings, by quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

Q1

 

Q2

 

Q3

 

Q4*

 

Full Year*

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 

 

 

 

 

 

 

2011 

 

 

 

 

 

 

2010 

 

 

 

 

 

 

2009 

 

 

 

 

 

 

2008 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Future quarters represent estimates for fiscal year 2012.

• Projected  remodel openings, by quarter for fiscal year 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4*

 

Full Year*

 

 

 

 

 

 

 

 

 

 

 

 

 

Bob Evans

 

 

32 

 

15 

 

43 

 

90 

 

  Mimi’s Café

 

 

-

 

 

  3 

 

  3 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Future quarters represent estimates for fiscal year 2012.

• Bob Evans Restaurants same-store sales analysis (24-month core; 555 restaurants):
                                     
   
Fiscal 2012
 
 
Fiscal 2011
 
 
Fiscal 2010
   
Nominal
 
 
Menu
 
 
Real
 
 
Nominal
 
 
Menu
 
 
Real
 
 
Nominal
 
 
Menu
 
 
Real
May  
(1.5)
 
 
 
0.8 
 
 
(2.3)
 
 
(3.5)
 
 
 
1.8 
 
 
(5.3)
 
 
(2.8)
 
 
 
2.7 
 
 
(5.5)
June  
(2.0)
 
 
 
1.0 
 
 
(3.0)
 
 
(3.1)
 
 
 
2.0 
 
 
(5.1)
 
 
(2.5)
 
 
 
2.2 
 
 
(4.7)
July  
(1.8)
 
 
 
2.0 
 
 
(3.8)
 
 
(3.7)
 
 
 
2.0 
 
 
(5.7)
 
 
(3.7)
 
 
 
2.3 
 
 
(6.0)
Q1  
(1.8)
 
 
 
1.3 
 
 
(3.1)
 
 
(3.5)
 
 
 
1.9 
 
 
(5.4)
 
 
(3.0)
 
 
 
2.4 
 
 
(5.4)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
August  
(2.6)
 
 
 
2.0 
 
 
(4.6)
 
 
(1.8)
 
 
 
2.0 
 
 
(3.8)
 
 
(3.0)
 
 
 
2.3 
 
 
(5.3)
September  
(1.9)
 
 
 
2.0 
 
 
(3.9)
 
 
(0.6)
 
 
 
1.8 
 
 
(2.4)
 
 
(3.5)
 
 
 
2.4 
 
 
(5.9)
October  
(0.3)
 
 
 
2.0 
 
 
(2.3)
 
 
(0.5)
 
 
 
1.8 
 
 
(2.3)
 
 
(2.0)
 
 
 
2.4 
 
 
(4.4)
Q2  
(1.5)
 
 
 
2.0 
 
 
(3.5)
 
 
(0.9)
 
 
 
1.9 
 
 
(2.8)
 
 
(2.8)
 
 
 
2.3 
 
 
(5.1)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
November    
0.1 
 
 
 
1.9 
 
 
(1.8)
 
 
 
6.1 
 
 
 
1.9 
 
 
 
4.2 
 
 
(5.0)
 
 
 
0.7 
 
 
(5.7)
December    
2.4 
 
 
 
2.2 
 
 
 
0.2 
 
 
(5.0)
 
 
 
1.9 
 
 
(6.9)
 
 
(3.5)
 
 
 
0.7 
 
 
(4.2)
January    
2.3 
 
 
 
2.0 
 
 
 
0.3 
 
 
(1.7)
 
 
 
1.4 
 
 
(3.1)
 
 
(4.2)
 
 
 
1.3 
 
 
(5.5)
Q3    
1.6 
 
 
 
2.0 
 
 
(0.4)
 
 
(0.5)
 
 
 
1.8 
 
 
(2.3)
 
 
(4.2)
 
 
 
0.9 
 
 
(5.1)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
February    
 
 
 
 
 
 
 
 
 
3.2 
 
 
 
1.0 
 
 
 
2.2 
 
 
(7.3)
 
 
 
1.9 
 
 
(9.2)
March    
 
 
 
 
 
 
 
 
(0.9)
 
 
 
1.0 
 
 
(1.9)
 
 
(0.4)
 
 
 
1.9 
 
 
(2.3)
April    
 
 
 
 
 
 
 
 
 
1.3 
 
 
 
1.0 
 
 
 
0.3 
 
 
(4.6)
 
 
 
1.9 
 
 
(6.5)
Q4    
 
 
 
 
 
 
 
 
 
1.2 
 
 
 
1.0 
 
 
 
0.2 
 
 
(4.1)
 
 
 
1.9 
 
 
(6.0)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal  
(0.6)
 
 
 
1.8 
 
 
(2.4)
 
 
(1.0)
 
 
 
1.7 
 
 
(2.7)
 
 
(3.5)
 
 
 
1.9 
 
 
(5.4)
year                                    
• Mimi’s Café same-store sales analysis (24-month core;143 restaurants):
                                     
   
Fiscal 2012
 
 
Fiscal 2011
 
 
Fiscal 2010
   
Nominal
 
 
Menu
 
 
Real
 
 
Nominal
 
 
Menu
 
 
Real
 
 
Nominal
 
 
Menu
 
 
Real
May  
(1.8)
 
 
 
4.2 
 
 
(6.0)
 
 
(8.4)
 
 
 
2.4 
 
 
(10.8)
 
 
(6.9)
 
 
 
2.4 
 
 
(9.3)
June  
(6.1)
 
 
 
4.2 
 
 
(10.3)
 
 
(8.2)
 
 
 
2.7 
 
 
(10.9)
 
 
(5.0)
 
 
 
2.3 
 
 
(7.3)
July  
(6.1)
 
 
 
4.2 
 
 
(10.3)
 
 
(6.5)
 
 
 
2.7 
 
 
(9.2)
 
 
(7.2)
 
 
 
2.3 
 
 
(9.5)
Q1  
(4.8)
 
 
 
4.2 
 
 
(9.0)
 
 
(7.6)
 
 
 
2.6 
 
 
(10.2)
 
 
(6.4)
 
 
 
2.3 
 
 
(8.7)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
August  
(5.6)
 
 
 
4.2 
 
 
(9.8)
 
 
(6.2)
 
 
 
2.7 
 
 
(8.9)
 
 
(5.2)
 
 
 
2.2 
 
 
(7.4)
September  
(4.8)
 
 
 
4.2 
 
 
(9.0)
 
 
(4.8)
 
 
 
2.7 
 
 
(7.5)
 
 
(8.1)
 
 
 
2.2 
 
 
(10.3)
October  
(4.1)
 
 
 
4.2 
 
 
(8.3)
 
 
(5.8)
 
 
 
2.2 
 
 
(8.0)
 
 
(7.2)
 
 
 
2.2 
 
 
(9.4)
Q2  
(4.8)
 
 
 
4.2 
 
 
(9.0)
 
 
(5.6)
 
 
 
2.6 
 
 
(8.2)
 
 
(6.8)
 
 
 
2.2 
 
 
(9.0)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
November  
(4.0)
 
 
 
4.2 
 
 
(8.2)
 
 
 
0.8 
 
 
 
2.3 
 
 
(1.5)
 
 
(8.1)
 
 
 
2.2 
 
 
(10.3)
December  
(3.0)
 
 
 
4.2 
 
 
(7.2)
 
 
(4.1)
 
 
 
2.3 
 
 
(6.4)
 
 
(8.9)
 
 
 
2.2 
 
 
(11.1)
January  
(3.3)
 
 
 
4.0 
 
 
(7.3)
 
 
(6.0)
 
 
 
1.7 
 
 
(7.7)
 
 
(7.7)
 
 
 
2.2 
 
 
(9.9)
Q3  
(3.4)
 
 
 
4.1 
 
 
(7.5)
 
 
(3.2)
 
 
 
2.1 
 
 
(5.3)
 
 
(8.3)
 
 
 
2.2 
 
 
(10.5)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
February    
 
 
 
 
 
 
 
 
(1.3)
 
 
 
1.7 
 
 
(3.0)
 
 
(7.9)
 
 
 
2.3 
 
 
(10.2)
March    
 
 
 
 
 
 
 
 
(2.0)
 
 
 
5.7 
 
 
(7.7)
 
 
(5.5)
 
 
 
2.3 
 
 
(7.8)
April    
 
 
 
 
 
 
 
 
(0.8)
 
 
 
5.7 
 
 
(6.5)
 
 
(7.9)
 
 
 
2.3 
 
 
(10.2)
Q4    
 
 
 
 
 
 
 
 
(1.3)
 
 
 
4.5 
 
 
(5.8)
 
 
(7.1)
 
 
 
2.3 
 
 
(9.4)
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal  
(4.3)
 
 
 
4.2 
 
 
(8.5)
 
 
(4.5)
 
 
 
2.9 
 
 
(7.4)
 
 
(7.2)
 
 
 
2.2 
 
 
(9.4)
year    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
• Key restaurant sales data (core restaurants only):
             
     
Bob Evans Restaurants
 
 
 
 
Mimi’s Café 
             
Average annual store sales ($) – FY11 $  
1,723,000 
  $  
2,679,000 
       
 
     
 
Q3 FY 2012 day part mix (%):    
 
     
 
  Breakfast  
33%
   
23%
  Lunch  
38%
   
41%
  Dinner  
29%
   
36%
       
 
     
 
Q3 FY 2012 check average ($) $  
8.63 
  $  
11.79 
• Quarterly restaurant sales by concept:    
                   
   
Q3 2012
 
 
YTD 2012
 
 
Q3 2011
 
 
YTD 2011
                   
Bob Evans Restaurants $  
242,360 
$  
728,949 
$  
238,986 
$  
735,359 
Mimi's Café    
94,948 
   
270,385 
   
98,708 
   
283,499 
       
 
   
 
   
 
   
 
Total $  
337,308 
$  
999,334 
$  
337,694 
$  
1,018,858 

Foods Q3 Review:

Historical sow cost review (average cost per hundredweight):
                               
Fiscal Year    
Q1
 
 
 
 
Q2
 
 
 
 
Q3
 
 
 
 
Q4
 
 
 
 
Average
2012   
$
57.06 
 
 
$
67.82 
 
 
$
60.56 
 
 
$
 
 
 
 
$
61.94 
2011   
$
59.52 
 
 
$
60.47 
 
 
$
51.16 
 
 
$
59.05 
 
 
$
57.17 
2010   
$
43.24 
 
 
$
32.88 
 
 
$
40.14 
 
 
$
55.91 
 
 
$
42.18 
2009   
$
28.69 
 
 
$
51.19 
 
 
$
49.03 
 
 
$
50.65 
 
 
$
44.93 
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pounds sold review:
                               
Fiscal Year    
Q1
 
 
 
 
Q2
 
 
 
 
Q3
 
 
 
 
Q4
 
 
 
 
Average
2012     
-2.70%
 
 
 
 
3.10%
 
 
 
 
0.90%
 
 
 
 
 
 
 
 
 
 
0.30%
2011     
-1.10%
 
 
 
 
-14.70%
 
 
 
 
-7.90%
 
 
 
 
-4.60%
 
 
 
 
-7.10%
2010     
-2.90%
 
 
 
 
10.10%
 
 
 
 
20.90%
 
 
 
 
4.50%
 
 
 
 
8.20%
2009     
16.40%
 
 
 
 
13.60%
 
 
 
 
-4.80%
 
 
 
 
2.40%
 
 
 
 
6.90%
 • Net sales review (dollars in thousands):
                   
   
Q3 2012
 
YTD 2012
 
 
Q3 2011
 
YTD 2011
Gross sales
$
106,599 
$
274,673 
 
 
$
106,780 
$
272,346 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: promotions  
 
(14,780)
 
 
(30,802)
 
 
 
 
(15.007)
 
 
(30,797)
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: returns and slotting  
 
(788)
 
 
(2,320)
 
 
 
 
(873)
 
 
(2,201)
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$
91,031 
$
241,551 
 
 
$
90,900 
$
239,348 
Balance Sheet Summary:          
           
(in thousands)  
Jan. 27, 2012
 
 
 
 
Apr. 29, 2011
   
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
47,943 
 
 
$
57,730 
Other current assets  
 
66,105 
 
 
61,875 
Net property, plant and equipment  
 
882,179 
 
 
900,878 
Goodwill and other intangible assets  
 
41,649 
 
 
42,264 
Other non-current assets  
 
35,427 
 
 
31,574 
Total assets
$
1,073,303 
$
1,094,321 
   
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
38,571 
 
 
$
13,571 
Other current liabilities  
 
158,616 
 
 
157,541 
Long-term debt  
 
97,145 
 
 
135,716 
Other long-term liabilities  
 
120,699 
 
 
123,383 
Stockholders’ equity  
 
658,272 
 
 
664,110 
Total liabilities and equity
$
1,073,303 
$
1,094,321