Salt Lake City-based JB's Restaurants Inc. Tuesday announced net income of $5.8 million or 99 cents per share, for its third fiscal quarter ended July 4, up from $79,000 or 2 cents per share, for the same period last year.
Net income for the first three quarters of fiscal 1994 was $4.9 million or 86 cents per share, up from $94,000 or 2 cents per share, for the same period in fiscal '93.Total revenues for the third quarter were $36.9 million, down 0.1 percent from the period last year. JB's cited a 6 percent decline in same-store restaurant sales, offset by an increase in the number of HomeTown Buffet restaurants in operation from five to 13 at the end of the quarter.
Third-quarter results were aided by a $14.7 million pre-tax gain from the sale of 1.05 million shares of HomeTown Buffet Inc. stock, a spokesman said.
"Operating results continue to be negatively impacted by the soft sales in the JB's Restaurants," said David E. Pertl, chief financial officer. "However, the sale of assets, including the HomeTown Buffet Inc. stock and repayment of debt significantly strengthened the company's balance sheet."
During the quarter two new HomeTown Buffet restaurants opened with one additional HomeTown Buffet restaurant expected to open in the current fiscal quarter. In addition, the company's first conversion of a JB's Restaurant to a Galaxy Diner was completed in Provo.
JB's said the company's first Galaxy Diner conversion - a total of 20 are planned - has averaged sales of over $39,000 per week in its first four weeks of operation, compared with $13,000 per week as a JB's Restaurant.
Galaxy Diner opened June 28 when the company converted its JB's Family Restaurant in the Plum Tree Shopping Center, 2244 N. University Parkway, to a diner incorporating a 1950s nostalgia theme.
JB's President Don McComas termed Galaxy Diner "a fresh look at the company's future."
McComas described the Galaxy Diner concept as, "A high energy, fun atmosphere and something that we believe other chain diners haven't seriously focused on as yet - really great food quality."
The decor features pictures of '50s celebrities, including sports stars from Brigham Young University, located adjacent to the facility in Provo. The decor also features blue neon ceiling star lights, a '50s-style soda fountain and a jukebox with tunes from the past. The diner menu features a '50s focus on old-time favorites like Monster Mash Hash, hot flapjacks and fresh-baked pastries for breakfast.
The lunch and dinner menu boasts the "best burgers in the Galaxy" along with diner specialties including "Bring My Baby Back" ribs, meatloaf and pot roast, plus daily blue plate specials like homemade "Lucky Star" chicken pot pies. The fountain menu includes shakes, malts, floats and sodas made just as you remember in the '50s . . . except for the prices.
McComas said he is optimistic about the Galaxy Diner concept.
"Today, people are looking for an experience and value when they go out to eat. They want to be entertained, and we believe the Galaxy Diner will provide this type of dining occasion."
JB's employs some 5,000 people with restaurant operations in nine Intermountain states, in which it operates 89 JB's restaurants, franchises 19 JB's restaurants and operates 13 franchised HomeTown Buffet restaurants, the new Galaxy Diner and, soon to open, the Country Cottage Cafe, described as an "upscale family restaurant with a rotisserie-based menu."