Zacks_Analysts' Blog : Benihana Reports Higher Sales - Analyst Blog

The largest U.S. chain of Japanese restaurants, Benihana Inc (BNHN), posted restaurant sales of $27.9 million for the four-week period ending March 27, 2011, up 7.0% from $26.1 million recorded in the year-ago period.  The increased sales were driven by higher customer visitation.

The company’s comparable restaurant sales climbed 7.0% for the same period, representing the fourteen consecutive period of growth. In the first and second four-week period of the fourth quarter of 2011, same-store sales spiked up 4.4% and 5.1%, respectively.

The comparable restaurant sales jumped 9.9% at Benihana Teppanyaki restaurants, on the back of higher guest count (up 8.6%) resulting from the Benihana Teppanyaki Renewal Program. In the first and second four-week period, restaurant sales climbed 5.7% and 6.8%, respectively.

The same-store sales also increased 3.7% at RA Sushi restaurant benefiting from higher traffic in the third four-week period of the fourth quarter of 2011. In the first and second four-week period, same-store sales at RA Sushi restaurant rose 5.2% and 1.2%, respectively.

However, due to inclement winter weather in New York, same-store sales plummeted 2.7% at Haru, but were less than 6.1% drop recorded in the first four-week period ending January 30, 2011. In the second four-week period ending February 27, 2011, same store-sales jumped 2.1% at Haru.

Store operating weeks during the period were 0.5% lower than the year-ago period.

For the twelve-week period, Benihana reported restaurant sales of $81.4 million, up 5.6% year over year, driven by company-wide comparable restaurant sales growth. Benihana recorded sales growth of 6.3% at Benihana Teppanyaki and 3.4% at RA Sushi, but witnessed a drop of 2.7% at Haru.

The company has a Zacks #2 Rank, which implies a short-term Buy rating on the stock. We also reiterate our long-term Neutral recommendation.

Benihana’s prime competitors are McCormick & Schmick's Seafood Restaurants Inc. (MSSR) and P.F. Chang's China Bistro Inc. (PFCB).