O'Charley's chairman & CEO Gregory L. Burns said thatgasoline prices are to blame for the lowered guidance."Our concern (is) that higher gasoline prices andrising interest rates are likely to create uncertaintyin consumer spending patterns and may negativelyimpact customer spending in our restaurants," heexplained.
During the company's first quarter 2005, which endedApril 17, 2005, company-wide revenue rose 8.5% to$290.5 million from $267.7 million compared to lastyear, while operating income increased to $19.2million from $15.4 million, or 24.7%. Same-store saleswere relatively flat less than 1%.
The company's operating margin increased during thefirst quarter to $19.2 million, or 6.6% of sales,compared with $15.4 million, or 5.7% of sales, for thesame period last year. Nonetheless, O'Charley's marginis slim compared to its competitors, according toanalysts.
Burns said the company is focused on improving itsoperating margin and increasing customer counts to its restaurants, which include 224 namesake restaurants along with 101 Ninety Nine Restaurant & Pub locations and six Stoney River Legendary Steaks.
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