Bob Evans swings to $51.4 million loss on charges

COLUMBUS, Ohio - Pork sausage producer and restaurant owner Bob Evans Farms Inc. reported Tuesday that it slid to a $51.4 million loss in its fiscal third quarter on weak demand and several charges.

The operator of Bob Evans and Mimi's Cafe restaurants said it dropped to a loss of $1.67 per share for the quarter, from year-ago profit of $20 million, or 61 cents per share. Excluding pretax charges of $75.6 million for the acquisition of Mimi's Cafe, severance costs and other items, the company would have posted operating profit of about $28.9 million.

Bob Evans saw its revenue slip to $443.8 million from $449.7 million last year. Sales at restaurants open at least a year, a key indicator of financial health, fell 1.3 percent at Bob Evans restaurants and 6.8 percent at Mimi's Cafe even as average menu prices jumped at both.

The Ohio-based company said it will scale back growth plans, building no new Bob Evans restaurants and just two Mimi's Cafes in its 2010 fiscal year. The company also reiterated that it has suspended its share repurchase program for the balance of fiscal 2009 but said it is committed to paying an annual dividend of 64 cents per share.

Looking ahead, Bob Evans backed its outlook for adjusted operating profit of $91 million to $96 million for fiscal 2009.

Shares of Bob Evans fell $1.13, or more than 5 percent, to close earlier at $19.08.

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