DALLAS, June 30, 2000 (PRIMEZONE) -- Romacorp, Inc. today announced that it expects operating income for the first quarter ending June 25, 2000 to be significantly below the operating income reported during the first quarter of the prior year that ended on June 27, 1999.
Richard A. Peabody, Acting President commented, "We expect to report strong comparable store sales increases during our first quarter. However, our usage of ribs has exceeded our contracted commitments from our suppliers resulting in a significant increase in the cost of these items. Despite this increase in food costs, we have chosen to maintain our menu prices rather than passing on cost increases to our customers. Looking forward, we expect market prices for baby-back and spare ribs to improve beginning in the third quarter of our fiscal year."
Romacorp, Inc. operates and franchises Tony Roma's restaurants, the world's largest casual dining restaurant chain specializing in ribs. The Company operates 60 restaurants and franchises 168 restaurants in 28 states and 20 foreign countries and territories.
Forward-Looking Comments
Statements which are not historical facts contained herein are forward looking statements that involve estimates, risks and uncertainties, including but not limited to: consumer demand and market acceptance risk; the level of and the effectiveness of marketing campaigns by the Company; training and retention of skilled management and other restaurant personnel; the Company's ability to locate and secure acceptable restaurant sites; the effect of economic conditions, including interest rate fluctuations, the impact of competing restaurants and concepts, new product introductions, product mix and pricing, the cost of commodities and other food products, labor shortages and costs and other risks detailed in filings with the Securities and Exchange Commission.