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ATLANTA-With negotiations underway to sell its Bugaboo Creek Steak House division, RARE Hospitality International will grow its remaining Long Horn Steakhouse and Capital Grille units, executives said during a fourth quarter conference call.

The company plans to open 32 to 34 LongHorn restaurants and four Capital Grille restaurants during the fiscal year. Some 80% of the new units will be “back fill” in existing markets.

“We have made significant progress on the strategic initiatives announced in 2006,” said Philip J. Hickey, Jr., chairman and CEO of RARE. “The competitive environment in 2007 will continue to be challenging.”

Last year, the company opened 30 LongHorn restaurants and closed two, ending with a total of 265 units. The Capital Grille completed fiscal 2006 with 26 restaurants in operation, compared with 23 at the end of fiscal 2005.

The company had announced last year it would divest its Bugaboo Creek Steak House as part of a strategic refocusing. Unit growth for the other concepts will continue at 11% to 12% annually for the foreseeable future, Hickey said.

For the quarter, revenues were $259.9 million, up 17.0% from the previous year. Net earnings from continuing operations for the quarter were $15.5 million, compared with $14.4 million the previous year.

For 2006, a 53-week year, the company posted revenues of $986.9 million, up 17.6% from fiscal 2005, a 52-week year. Net earnings from continuing operations were $50 million, compared with nearly $52.4 million for fiscal 2005.

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