Owner of Einstein Bros. bagel chain warns on 3Q

LAKEWOOD, Colo. -- Shares of the owner of the Einstein Bros. Bagels brand slid Tuesday after it forecast third-quarter results that fell below Wall Street expectations and said its board was considering restructuring its debt.

Einstein Noah Restaurant Group Inc., which is also considering selling itself, said that it expects to report net income of $3.4 million on revenue of $105.5 million for the quarter that ended on Oct. 2. That falls short of the $3.6 million in profit and $108.3 million in revenue that analysts polled by FactSet were expecting.

Einstein Noah, based in Lakewood, Colo., also owns the Noah's New York Bagels and Manhattan Bagel brands. It owns or licenses 790 restaurants across the country.

The company announced in May that it had hired Piper Jaffray as a financial adviser and was looking at all its strategic alternatives, which include a merger or sale of the company, to maximize shareholder value. Hedge fund Greenlight Capital owns about 63 percent of the company's shares.

Einstein Noah said Tuesday that the board is considering restructuring its debt with a new credit facility. It also is considering a payment of a special dividend. Einstein Noah has been working to pay down its debt and had an estimated $70.5 million in debt outstanding as of the end of its second quarter.

Its shares fell $1.69, or 9.5 percent, to $16.12 in midday trading. Shares have ranged from $11.93 to $18.58 over the past year, and had been up about 13 percent in 2012.