Lone Star earns $8.3M in 1st quarter

Nation's Restaurant News, April 17, 1995

WICHITA, Kan. -- Lone Star Steakhouse & Saloon Inc. posted a 58-percent increase in profits, to $8.3 million, on a 75-percent rise in sales, to $63.2 million, in its first quarter ended March 21. In the year-ago quarter, the company earned $5.3 million on sales of $36.2 million.

The "Texas Roadhouse" chain opened five new units in the quarter, bringing its total domestic restaurants to 109 compared with 66 a year earlier. Comparable-store sales were up 3.4 percent. Lone Star also is expanding its international reach with four units already open in Australia and three more under construction. Another unit is expected to open this summer in Guam, and the company's first European unit is scheduled to open in Amsterdam in June.

Helping to fund restaurant expansion and renovation is a new stock issue of 4.1 million shares, including 1.6 million being sold by current stockholders and 2.5 million shares being sold by the company.

In a separate matter, Lone Star reached a settlement with the U.S. Justice Department to bring 97 of its restaurants into compliance with access provisions of the Americans with Disabilities Act. Under the agreement Lone Star will donate $25,000 to advocacy groups for the disabled. It must complete ADA access upgrades this month.