The new units will increase the company's portfolio to 64 owned properties and 18 franchised restaurants in the United States and Latin America.

The new units will be in Carlsbad, CA; Westbury, NY; and Scottsdale, AZ. New franchised contracts are in Broomfield, CO; Trinidad; and Santiago.

Net income for the quarter amounted to $2.8 million versus $2.4 million in the same 2001 period, an increase of 14%. Total sales of $57.2 million compared with $50.9 million, a 12.2% gain.

Per-diluted share net income was 30 cents, based on 9.4 million average shares compared with 33 cents based on 7.5 million average shares a year ago.

Gross profit was $42.7 million versus $37.2 million in first quarter 2002. Gross profit margins were 75.3% compared with 73.8% last year. Restaurant operating profit was $9 million, up 5.3% from $8.5 million in the comparable 2002 period.

In a prepared statement, Benihana president Joel A. Schwartz says he expects all of fiscal 2003 to be "another year of growth." He says sales and customer traffic "continue satisfactorily and our focus is on further strengthening our (fiscal) performance."

One area Schwartz will be looking at, he says in his statement, is restaurant operating expenses. That column grew to $33.8 million in the first quarter, up from $28.7 million in the same period last year. Labor and related costs made up $21.3 million of the $33.8 million expenses. Last year, labor costs were $17.9 million.

A rise in the number and amounts of claims in the company's self-insured health plan triggered the higher expenses, Schwartz says. Benihana also had to pay higher minimum wages in California where the company operates 14 restaurants.

To offset the higher costs, he plans to increase menu prices in selected markets.