GOLDEN, Colo., April 7 /PRNewswire-FirstCall/ -- New World Restaurant
Group, Inc. (Pink Sheets: NWRG.PK) today reported that comparable store sales
in the first quarter of 2005 increased by 4.6% over the corresponding quarter
in fiscal 2004.
The strong gain in comparable store sales experienced in the 13 weeks
ended March 29, 2005 followed a 2.6% increase in the fourth quarter of 2004.
"This year-over-year increase in comparable store sales in the first
quarter of 2005 represents a continuation of our company's strong momentum in
this key measurement throughout 2004," said Paul Murphy, New World CEO. "It
is an indication that the focused operational strategy we introduced last year
is succeeding, as we continue to capitalize on the strength of the Einstein
Bros. and Noah's brands."
Mr. Murphy noted that New World saw continued improvement in check average
at company-owned stores, posting a 6.4% increase in the first quarter of 2005
over the corresponding 2004 quarter. The company also continued its positive
trend in transaction counts, improving from a 2.5% year-over-year decline in
the fourth quarter of 2004 to a 1.7% year-over-year decline in the first
quarter of 2005. Company-owned Einstein Bros. stores posted a 2004 yearly
average unit sales volume of $801,000, while company-owned Noah's stores
delivered an average unit sales volume of $773,000.
In its efforts to strengthen performance of the company-operated Einstein
Bros. locations, New World has developed a focused brand enhancement strategy
with two key elements. The first is to continue to open new, next-generation,
quick casual concept Einstein Bros. Cafe restaurants. Customer research and
feedback is being utilized to fine-tune the look, feel and brand positioning
of the Cafe concept. To date, New World has opened or converted seven
Einstein Bros. Cafes in the Denver and Colorado Springs markets. The next
Einstein Bros. Cafe is scheduled to open at The Crossings at Clover Basin in
Longmont, Colo. in May.
The second element will concentrate on improving the performance of the
existing Einstein Bros. Bagels restaurants by incorporating the most
successful aspects of the Café concept in the majority of locations. These
efforts will include updates of restaurant interiors and improvements to
service through new menu boards and a "pay first" ordering system.
To support this strategy, the company's capital expenditure program will
be focused on Einstein Bros. Bagels' remodeling efforts and targeted openings
of new Einstein Bros. Cafes. The company intends to implement the
enhancements in a significant number of Einstein Bros. stores during fiscal
years 2005 to 2007 at an average cost of approximately $60,000 per location,
while continuing to open a number of Einstein Bros. Cafes. Both programs are
estimated to have a payback period of less than 2.5 years.
New World is a leading company in the quick casual restaurant industry.
The company operates locations primarily under the Einstein Bros. Bagels and
Noah's New York Bagels brands and primarily franchises locations under the
Manhattan Bagel and Chesapeake Bagel Bakery brands. As of December 28, 2004,
the company's retail system consisted of 453 company-operated locations, as
well as 180 franchised, and 57 licensed locations in 34 states, plus D.C. The
company also operates a dough production facility.
Certain statements in this press release constitute forward-looking
statements or statements which may be deemed or construed to be forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "plan to," "is designed to," "expectations,"
"intend," "indications," "expect," "should," "would," "believe," "trend" and
similar expressions and all statements which are not historical facts are
intended to identify forward-looking statements. These forward-looking
statements involve and are subject to known and unknown risks, uncertainties
and other factors which could cause the Company's actual results, performance
(financial or operating), or achievements to differ from the future results,
performance (financial or operating), or achievements expressed or implied by
such forward-looking statements. These factors include but are not limited to
(i) the availability of sufficient capital to the Company and the ability to
reach favorable lease terms for the opening of Company-operated restaurants;
(ii) the success of the Company's plan to revitalize and remodel its concepts
including existing Einstein Bros. locations is dependent upon various factors,
including the availability of capital and opportunities to make
modifications; (iii) the improvement in period over period comparable store
sales, average check and transactions is not necessarily indicative of future
results and is subject to shifting consumer preferences, economic conditions,
weather, and competition, among other factors; (iv) the conversions, the
expenditure of capital, and the opening of new concept stores and advertising
campaigns are subject to availability of capital, and other resources, raw
materials, the availability of advertising media and the projected returns on
investments in those conversions; and (v) the return on investments and
payback period is dependent upon a variety of factors, including actual costs,
the success and consumer acceptance of the re-imaged stores and concept, and
increased sales and operating income. These and other risks are more fully
discussed in the Company's SEC filings.
SOURCE New World Restaurant Group, Inc.
CONTACT: Media/Investors - Bill Parness, +1-732-290-0121, or Marty
Gitlin, +1-914-528-7702; firstname.lastname@example.org
Web site: http://www.newworldrestaurantgroup.com
04/07/2005 16:01 EDT http://www.prnewswire.com