Summit Family Restaurants Inc., which operates JB's Restaurants, Galaxy Diners and HomeTown Buffet Restaurants in sev-er-al Western states, posted a net loss of $1.3 million or 27 cents per share in the quarter ending July 3 compared with net income of $5.8 million or 99 cents per share in the same quarter a year ago.
For the 40-week period ending July 3, the company had a net loss of $2.9 million or 60 cents per share on revenue of $92.4 million compared with net income of $4.9 million or 86 cents per share on revenue of $86.9 million in the same period a year ago.Don M. McComas, president and chief executive officer, said revenues have increased due to the addition of HomeTown Buffets, but earnings were adversely affected by soft sales in JB's Restaurants. He said food costs as a percentage of sales were hurt by high produce prices that were the result of bad weather in California.
Summit Family Restaurants Inc. opened its fifth and sixth Galaxy Diners, its 23rd franchised JB's and 16th HomeTown Buffet during the third quarter of the company's fiscal year. "Though we are disappointed in the bottom line, we remain committed to improving the company's restaurant operations, sales and profits," said McComas.