O'Charley's earns $1.5M in 3Q, gets unit funding

Nation's Restaurant News, Dec 23, 1996

NASHVILLE. Tenn. - O'Charley's Inc., with third-quarter profits of $1.5 million, cut away at earlier losses in 1996, but the 69-unit casual-themed chain still wound up the first nine months of its fiscal year on Oct. 6 with a loss of $4.42 million. It was primarily attributable to $8.5 million in first-half charges connected with the settlement of lawsuits initiated by several current and former employees who allege discriminatory labor practices. Other major charges included write-offs for impaired assets.

For the nine months in the previous year, O'Charley's posted a profit of $8.79 million, bolstered substantially by a gain on its investment in Logan's Roadhouse Inc., which went public last year. Its third quarter in 1995 ended with a profit of $6.05 million. Company revenues were up 15 percent in the third quarter, to $39.3 million, and 14 percent in the nine months, to $124.86 million, both representing record highs for the company.

O'Charley's president and chief executive, Gregory L. Burns, said same-store sales were up during the quarter despite a generally soft casual-dining market. A recent increase in the company's unsecured, revolving credit capacity to $70 million, from $30 million, the company said, will help it open 24 to 30 new restaurants over the next two years.