2nd-Quarter Net Drops 7% for El Torito Restaurants

El Torito Restaurants reported net income of $3.7 million for the second quarter of 1986, down 7% from $3.9 million for the second quarter of last year. Second-quarter sales increased 18%, however, to $99.9 million from $84.8 million.

Similarly, the Irvine-based company’s net income of $5.6 million for the first six months of 1986 was down 9% from $6.2 million, while six-month sales increased 27% to $191.6 million from $150.3 million.

Larry J. Cano, El Torito’s president and chief executive officer, attributed the softening in earnings in part to higher labor costs as a percentage of sales.