Rusty Pelican Restaurants Inc. reported a net loss of $256,000 for the 1986 fiscal year ended Aug. 3, contrasted with net income of $2.3 million for the prior year.
Sales for the year were a record $59.8 million, compared to sales of $53.7 million for the previous fiscal year.
The Irvine-based company attributed the downturn to a more competitive restaurant environment and to charges which included the costs of restructuring the company, including severance pay for three executives, write-offs of real estate expenses and “changes in accounting methods to reflect more conservative practices.”
For the fourth quarter, Rusty Pelican reported net income of $71,000 on sales of $18.8 million, compared to net income of $1.2 million on sales of $19.2 million for the same period a year ago.
Rusty Pelican owns and operates 20 restaurants in seven states, including five in Orange County. Two others are under construction, one in Glendale and one in San Ramon, which is east of Oakland.
Greg Dollarhyde, Rusty Pelican’s chief financial officer, declined to forecast earnings or revenue for either the current quarter or fiscal year, except to say “we look to be profitable for all of 1987.”