Pancho's posts 28% 2nd-Q profit gain

Nation's Restaurant News, June 15, 1992

FORT WORTH, Texas - Pancho's Mexican Buffet cited a strategic plan initiated last year for a 28-percent year-to-year increase in second-quarter net income, to $767,305, for the period ended March 31.

But revenue gains flattened, rising 3 percent over those of the year-earlier quarter, to $18 million, largely as a result of the closure of two underperforming restaurants, the company said.

In the year ended Sept. 30, Pancho's took more than $9 million in charges to devalue assets, close poorly performing restaurants and create a reserve for workers compensation claims.

"The strategic plan approved at the end of last year has achieved positive earnings growth and set the company on a course for record sales and earning for the year," said Hollis Taylor, president and chief executive officer.

Pancho's said first-half earnings rose 21 percent, to $1.2 million, on a 2-percent gain in revenues, to $35.1 million compared with last year's first half.

The company ended the quarter with 64 Sonoran-style Mexican restaurants.